TITLE: Relating to claims for unpaid wages.

SUMMARY: Relating to claims for unpaid wages.

FULL TEXT:
AN ACT relating to claims for unpaid wages. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter B, Chapter 61, Labor Code, is amended by adding Sections 61.021 and 61.022 to read as follows: Sec. 61.021. EMPLOYER RETALIATION PROHIBITED; CAUSE OF ACTION. (a) An employer may not suspend or terminate the employment of or in any other manner discipline, discriminate against, or retaliate against an employee who in good faith seeks to recover wages owed to the employee by: (1) filing a complaint with a governmental entity; (2) seeking or accepting the assistance of a nonprofit organization, an employee rights organization, or an attorney; (3) exercising or attempting to exercise a right or remedy granted to the employee by a contract, local ordinance or order, or federal or state law; or (4) filing a wage claim under Subchapter D. (b) An employee who is the subject of an adverse employment action prohibited under Subsection (a) may bring suit against the employer, including an action in a district court for appropriate injunctive relief. (c) An employee who prevails in a suit brought under this section: (1) may recover: (A) reasonable damages incurred by the employee as a result of the adverse employment action; (B) additional damages in an amount equal to the greater of $1,000 or the amount of actual damages incurred as a result of the adverse employment action; and (C) court costs and reasonable attorney's fees incurred by the employee in the suit; and (2) is entitled to: (A) reinstatement to the employee's former position or a position that is comparable in terms of compensation, benefits, and other conditions of employment; and (B) reinstatement of any benefits and seniority rights lost because of the adverse employment action. Sec. 61.022. COMPLAINTS. (a) A person who has reason to believe that an employer has violated Section 61.021 may file a complaint with the commission. (b) On receipt of a complaint, the commission shall investigate and dispose of the complaint in the same manner as a wage claim under Subchapter D. The commission may incorporate the investigation into any ongoing investigation of an underlying wage claim filed by the employee, if applicable. (c) The commission shall ensure that information regarding the complaint process is available on the commission's Internet website. SECTION 2. Section 61.051(c), Labor Code, is amended to read as follows: (c) A wage claim must be filed not later than the second anniversary of [180th day after] the date the wages claimed became due for payment. The filing [180-day] deadline is a matter of jurisdiction. SECTION 3. Section 61.053, Labor Code, is amended by amending Subsection (a) and adding Subsection (a-1) to read as follows: (a) If the commission examiner, a wage claim appeal tribunal, or the commission determines that an employer acted in bad faith in not paying wages as required by this chapter, the examiner, tribunal, or commission, in addition to ordering the payment of the wages, shall [may] assess an administrative penalty against the employer. (a-1) For purposes of Subsection (a), acts that constitute bad faith by an employer include: (1) a history of previous violations of this chapter; (2) failure to pay wages to an employee as required by this chapter as an act of discrimination or retaliation against the employee; (3) failure to pay wages as required by this chapter to multiple employees at the same time; (4) failure to pay wages to an employee as required by this chapter knowing that the failure was a violation of state law; or (5) actions showing reckless disregard of the requirements of this chapter. SECTION 4. Subchapter D, Chapter 61, Labor Code, is amended by adding Section 61.0531 to read as follows: Sec. 61.0531. RETALIATION; DAMAGES. (a) If after an investigation of a complaint under Section 61.022 the commission examiner, a wage claim appeal tribunal, or the commission determines that an employer violated Section 61.021(a), the examiner, tribunal, or commission shall order the employer to pay to the employee damages in an amount equal to the greater of $1,000 or the amount of wages owed to the employee. (b) Damages under Subsection (a) are in addition to any payment of wages ordered under this subchapter. SECTION 5. The heading to Section 61.058, Labor Code, is amended to read as follows: Sec. 61.058. HEARING PROCEDURES;PRESUMPTION.SECTION 6. Section 61.058, Labor Code, is amended by amending Subsection (a) and adding Subsections (c) and (d) to read as follows: (a) Except as provided by Subsections (c) and (d), a [A] hearing conducted under this subchapter is subject to the rules and hearings procedures used by the commission in the determination of a claim for unemployment compensation benefits. (c) In a hearing under this subchapter, an employer's failure to comply with Section 62.003 or the recordkeeping requirements of the Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.) applicable to an employee creates a rebuttable presumption that the employee's hours worked, pay rate, and earnings are equal to those amounts provided in the employee's testimony or records presented at the hearing. (d) A presumption under Subsection (c) may be rebutted by clear and convincing evidence provided by the employer of the employee's hours worked, pay rate, and earnings. SECTION 7. Not later than December 1, 2017, the Texas Workforce Commission shall adopt rules necessary to implement Section 61.022, Labor Code, as added by this Act. SECTION 8. Sections 61.021 and 61.022, Labor Code, as added by this Act, apply only to an adverse employment action that is taken by an employer against an employee on or after the effective date of this Act. An adverse employment action taken before that date is governed by the law in effect on the date the action was taken, and the former law is continued in effect for that purpose. SECTION 9. Section 61.051, Labor Code, as amended by this Act, applies to a wage claim filed under Subchapter D, Chapter 61, Labor Code, for wages that become due for payment on or after March 5, 2017. A wage claim for wages that became due for payment before that date is governed by the law in effect immediately before the effective date of this Act, and the former law is continued in effect for that purpose. SECTION 10. Section 61.053(a), Labor Code, as amended by this Act, and Section 61.0531, Labor Code, as added by this Act, apply only to conduct that occurs on or after the effective date of this Act. Conduct that occurs before that date is governed by the law in effect on the date the conduct occurred, and the former law is continued in effect for that purpose. SECTION 11. Section 61.058, Labor Code, as amended by this Act, applies only to a hearing that commences on or after the effective date of this Act. A hearing that commences before that date is governed by the law in effect on the date the hearing commenced, and the former law is continued in effect for that purpose. SECTION 12. This Act takes effect September 1, 2017.