Texas lawmakers passed numerous bills affecting employers at the close of the 83rd legislative session, many of which were signed into law. An exception was House Bill (HB) 950, which sought to make it easier for employees to show pay discrimination. Governor Rick Perry vetoed the bill on the grounds that it “duplicates federal law, which already allows employees who feel they have been discriminated against through compensation to file a claim with the U.S. Equal Employment Opportunity Commission.” He added, “Texas’ commitment to smart regulations and fair courts is a large part of why we continue to lead the nation in job creation.”

Earning the governor’s signature were numerous bills concerning unemployment compensation (UC), including Senate Bill (SB) 21, which authorizes drug screenings for those receiving unemployment benefits who work in fields where drug testing is mandatory for employment. “Recipients of unemployment benefits have a responsibility to be prepared to work when an opportunity presents itself,” Perry said. “Our system is designed to provide assistance to people through a difficult time in their lives, not subsidize those who would misuse the system to live a drug-abusing lifestyle. This bill protects the resources that should be reserved for those truly in need.” The bill takes effect September 1.

In addition, the governor signed SB 920, effective immediately, which requires that an individual be actively seeking work to be eligible for UC benefits. Also approved were SB 658, which imposes a 15 percent penalty on a person who fraudulently obtains unemployment benefits, effective October 1, and HB 2035, which updates the Texas Shared Work program to meet federal requirements. Numerous bills adjusting unemployment chargebacks were also signed into law at the close of the session.

Legislation to discourage worker misclassification was signed into law as HB 2015, which requires contractors and subcontractors receiving public works contracts to ensure that all workers performing services under the contract are properly classified. An employer who misclassifies workers is subject to a $200 fine for each misclassified worker, effective January 1, 2014. The bill defines employment according to the definition provided under Section 201 of the Texas Labor Code.