Texas House Bill HB157

Texas 2021 - 87th Regular

Caption

Relating to requirements regarding an employee's normal weekly hours of work under the shared work unemployment compensation program.

Impact

The new regulations introduced by HB 157 are designed to facilitate a more adaptive labor market by allowing employers to reduce work hours while still providing employees the opportunity to obtain shared work benefits. This adjustment aims to protect jobs in sectors facing economic volatility, encouraging businesses to keep their employees rather than resorting to direct layoffs. The eligibility criteria for shared work benefits involve a significant reduction in hours, ensuring that those who qualify receive necessary support without losing their jobs entirely.

Summary

House Bill 157 aims to amend the Labor Code regarding the requirements for the shared work unemployment compensation program in Texas. Specifically, the bill allows for a reduction of employee work hours by at least 10% but no more than 60%, which permits employers to implement shared work plans to avert layoffs. The bill emphasizes the requirement for employers to certify that such plans are necessary to prevent layoffs affecting at least 10% of the workforce within a specific affected unit, making it crucial for employees to receive training during this period. The intent is to provide flexibility to both employers and employees during economic downturns while ensuring job retention.

Contention

Notable contentions surrounding HB 157 stem from concerns about how the changes could affect employee benefits and compensation. Critics argue that the potential for reduced work hours — although it may preserve jobs in the short term — could lead to long-term financial instability for employees reliant on full-time work. Transparency and adequacy of employee notification about these changes are also points of debate, suggesting that the implications of reducing work hours should be carefully evaluated to prevent adverse impacts on employee livelihoods.