AUSTIN — Austin has a reputation for keeping it weird and doing things differently, and that includes City leaders. From banning plastic bags to tree ordinances, Austin is often the first to pass policies that push the envelope.
That was the case in February when Austin became the first city in Texas to pass a paid sick leave ordinance that requires private businesses to allow employees to earn eight days of paid sick leave.
"If you've got a sick child that you don't want to send to school sick, people don't want to have their paychecks cut just because a family member gets sick. Everybody gets sick," said Council Member Greg Casar.
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A few months after the ordinance was passed, the City was sued by several business and political organizations, including the Texas Public Policy Foundation (TPPF).
"Paid sick leave is a good thing for employers to provide to their employees but the problem is that issues of compensation," said Ryan Walters, an attorney with TPPF. "When you mandate one form of compensation, you are also placing limits on other forms of compensation."
The Attorney General's Office joined the fight against Austin.
A judge ruled the City was justified in passing the ordinance, but as expected, an appeal was filed. Last Friday, an appellate judge blocked the ordinance from going into effect on Oct. 1.
Now, the courts will decide who's right.
"The ordinance violates the Texas Minimum Wage Act, which does provide that issues of compensation of employers to their employees are determined at the state level and that cities are not to fragment that statewide market," said Walters.
"I think that the state law is really specific. It says that we're not allowed to set a minimum wage," argues Mayor Steve Adler. "We would if we could, but we can't, although there are cities all over the country that are doing that. But the statute is silent on issues other than minimum wage and we think that paid sick leave is a different issue."
Adler says a hearing on the merits of the ordinance is scheduled for September. In the meantime, the San Antonio council followed Austin's footsteps and passed a similar ordinance last week. It goes into effect Jan. 1, pending any legal decisions that render paid sick leave ordinances invalid.