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HB 1843

AN ACT relating to requirements regarding an employee's normal weekly

House Bill Guillen
Filed

Filed

Bill introduced by legislator

Committee

Hearing

Passed Cmte

Calendar

Passed

Sent

Enrolled

Governor

Signed

89th Regular Session

Jan 14, 2025 - Jun 2, 2025 • Session ended

Awaiting Committee Assignment

Bill filed, pending referral to House committee

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Committee

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Fiscal Note

Not available

What This Bill Does

This Texas bill modifies the shared work unemployment compensation program, allowing employers to reduce employee work hours between 10-50% (previously 40%) while providing partial unemployment benefits. Employers must apply for a plan that affects at least 10% of employees in a specific work unit, with the goal of avoiding layoffs by spreading reduced hours across multiple workers instead of terminating some employees. The bill aims to provide more flexibility for businesses during economic challenges while helping workers maintain employment and receive partial wage replacement.

Subject Areas

Bill Text

relating to requirements regarding an employee's normal weekly
hours of work under the shared work unemployment compensation
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 215.022(a), Labor Code, is amended to
(a)  The commission may approve a shared work plan if:
(A)  applies to and identifies a specific affected
(B)  identifies the employees in the affected unit
by name and social security number and describes how the employees
will be notified in advance of the plan, if feasible;
(C)  provides an estimate of the number of
employees who would be laid off if the employer does not participate
(D)  reduces the normal weekly hours of work for
an employee in the affected unit by at least 10 percent but not more
(E)  applies to at least 10 percent of the
employees in the affected unit; and
(F)  permits eligible employees to participate in
(2)  the employer certifies that the implementation of
a shared work plan and the resulting reduction in work hours is in
(A)  affect at least 10 percent of the employees
(B)  result in an equivalent reduction in work
(3)  the employer certifies that:
(A)  if the employer currently provides fringe
benefits, the fringe benefits continue for employees in the
affected unit unless those benefits are not continued for employees
not participating in the shared work plan; and
(B)  participation in the shared work plan is
consistent with the employer's obligations under state and federal
(4)  the employer agrees to furnish the commission
reports relating to the operation of the plan as requested by the
commission and any other information the United States secretary of
labor determines is appropriate.
SECTION 2.  Section 215.041(b), Labor Code, is amended to
(b)  An individual is eligible to receive shared work
(1)  the individual is employed as a member of an
affected unit subject to a shared work plan that was approved before
that week and is in effect for that week;
(2)  the individual is able to work and is available for
additional hours of work or for full-time work with the
(3)  the individual's normal weekly hours of work have
been reduced by at least 10 percent but not more than 50 [40]
percent, with a corresponding reduction in wages.
SECTION 3.  (a)  The change in law made by this Act applies
only to an initial shared work plan or a shared work plan
modification submitted by an employer to the Texas Workforce
Commission on or after the effective date of this Act.  An initial
shared work plan or a shared work plan modification submitted
before the effective date of this Act is governed by the law as it
existed on the date the plan or modification was submitted, and the
former law is continued in effect for that purpose.
(b)  A shared work plan modification submitted to the Texas
Workforce Commission on or after the effective date of this Act that
modifies a shared work plan approved by the commission before the
effective date and would reduce an individual's normal weekly hours
of work more than 50 percent is considered to be a substantial
modification under Section 215.025, Labor Code, and the modified
plan must be evaluated and approved by the commission as provided by
that section before implementation.
SECTION 4.  This Act takes effect September 1, 2025.

Bill Sponsors

Legislators who authored or co-sponsored this bill.

Bill History

filed

Bill filed: AN ACT relating to requirements regarding an employee's normal weekly