89R12300 RDS-D By: Bryant H.B. No. 5164 A BILL TO BE ENTITLED AN ACT relating to parental leave for certain employees paid by employers or insurance policies maintained by employers. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subtitle B, Title 4, Labor Code, is amended by adding Chapter 320 to read as follows: CHAPTER 320. PAID PARENTAL LEAVE FOR CERTAIN EMPLOYEES Sec. 320.001. DEFINITIONS. In this chapter: (1) "Employee" means an individual who performs services in this state for an employer for compensation under a contract for hire, whether express or implied. The term does not include an independent contractor or a state employee to which Section 661.9125, Government Code, applies. (2) "Employer" means a person that employs 50 or more employees. Sec. 320.002. PAID PARENTAL LEAVE FOR CERTAIN EMPLOYEES. (a) This section applies only to an employee who, during the preceding 12 months, has worked for the employer on a full-time basis. (b) Subject to Subsection (c), an employee to whom this section applies is entitled, on request, to 60 days of paid leave for the: (1) birth of a child by the employee; (2) birth of a child by the employee's spouse; (3) birth of a child by a gestational surrogate; (4) adoption of a child; or (5) provision of foster care or kinship care to a child younger than one year of age who is in the conservatorship of the Department of Family and Protective Services. (c) The amount of paid leave to which an employee is entitled under Subsection (b) for each week of leave taken under that subsection is an amount equal to the employee's average weekly wage during the 12-month period preceding the first day that the employee takes leave under that subsection. (d) This section does not entitle an employee to leave in addition to any leave the employee is entitled to under the federal Family and Medical Leave Act of 1993 (29 U.S.C. Section 2601 et seq.). An employee is not entitled to paid leave under this section for any period during which the employee is taking other paid leave. (e) An employee may not take leave under this section: (1) later than the first anniversary of the date of birth or adoption of a child or placement of a child in foster care or kinship care; or (2) more than one time during a 12-month period. (f) Notwithstanding any other provision of this section, an employee who takes leave under this section for the purpose described by Subsection (b)(1) may take the leave before the birth of the child. (g) An employer may not take an adverse employment action against an employee because the employee has taken or plans to take paid leave under this section. For purposes of this subsection, "adverse employment action" includes termination or suspension of the employee's employment, an action that affects the employee's compensation, promotion, or performance evaluation, or any other employment action that would dissuade a reasonable employee from taking paid leave under this chapter. Sec. 320.003. PAYMENT OF PAID PARENTAL LEAVE COSTS. (a) To pay for the costs associated with paid leave required under Section 320.002, an employer may directly pay those costs or maintain an insurance policy providing coverage for those costs in accordance with this section. (b) An employer electing to maintain an insurance policy under Subsection (a) shall maintain a policy that provides sufficient coverage for the employer's employees who are entitled to paid leave under Section 320.002. To the extent the policy does not cover the costs associated with paid leave required under Section 320.002, the employer is liable for those costs. (c) The commissioner of insurance may adopt rules prescribing sufficient coverage requirements and reasonable rates for an insurance policy described by this section. Sec. 320.004. EXCEPTION. Notwithstanding any other provision of this chapter, an employee is not entitled to paid leave under Section 320.002, and an employer is not required to pay costs associated with that leave under Section 320.003, if no insurer authorized to engage in the business of insurance in this state offers an insurance policy described by Section 320.003 by October 1 of the year preceding the year in which the paid leave requirement would take effect. SECTION 2. An employee is not entitled to paid leave under Chapter 320, Labor Code, as added by this Act, before January 1, 2027. SECTION 3. This Act takes effect September 1, 2025.