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Bell Nunnally’s Jay Wallace and Laura Lavernia Break Down Employment Issue Related to Texas’ HB 2127 on Texas Lawyer

25 Jul 2023 North America

Bell Nunnally Partner Jay M. Wallace and Associate Laura K. Lavernia authored the Texas Lawyer article “Political Tug of War: Texas Legislature Attempts to Limit the Legislative Rights of Municipalities.” The piece breaks down implications of Texas Bill HB 2127 for employers.

The Texas Legislature passed HB 2127 on May 24, the governor signed it on June 14, and it takes effect on September 1. The bill, as Wallace and Lavernia note, “…targets the ability of cities and counties to impose their rulemaking authority on matters which the state already regulates, such as labor and employment, business and commerce, insurance, natural resources, and property rights.”

“On labor and employment matters, the law now states in sweeping fashion that, ‘Unless expressly authorized by another statute, a municipality or county may not adopt, enforce, or maintain an ordinance, order, or rule regulating conduct in a field of regulation that is occupied by a provision of this code.’ This law not only prohibits any covered regulation, but also overturns any existing regulation that conflicts,” detail Wallace and Lavernia.

Wallace and Lavernia note that matters relating to employee rights with the passage of HB 2127 will now largely defer to the Texas Labor Code, throwing into question the legality of numerous Texas city employment regulations on issues such as sick leave and gender-based discrimination. They note, “Largely gone, however, is the ability of municipal leaders to implement the labor and employment regulations they believe are specific and necessary to the interests of their constituencies.”

To read the full article, please click here.