Texas Association of Business

Employer input into the adoption of laws and enacting of labor law rules and regulations is critical. Too often, laws passed with good intentions have proven to be confusing and costly to the employer and do little for the employees the laws were meant to serve.

In 2007, TAB opposed and defeated almost 100 employment relations bills that would have made it much more difficult for employers to operate their businesses. With TAB’s support, the Texas Legislature passed a bill that will save employers an estimated $270 million in unemployment insurance taxes in 2008. The measure allows the Texas Workforce Commission (TWC) to pay off bonds issued in 2003 and bolster the Unemployment Compensation Trust Fund.

The voice of business was heard at the Capitol last session, which made a significant impact on the Texas economy today. Job growth in our state remains high and unemployment rates are still low, in spite of national trends that tell a different story. Texas added more than 213,000 new jobs last year, and job growth has exceeded over 1.2 million in the past five years.

While we are experiencing many positive trends across the state, too many Texans still exhaust unemployment insurance (UI) benefits, even when unemployment rates are very low. Statutory changes are needed to ensure that those receiving benefits are unemployed through no fault of their own, are available for work, and are actively seeking work. TAB further believes that the Legislature should adopt a drug testing program for UI beneficiaries that misuse benefits.

TAB’s Employment Relations Priorities for 2009
During the 81st legislative session, TAB will advocate improving the Texas Workforce Agency’s unemployment division, while warding off employment bills that would make it more difficult or costly to do business in Texas.

Arbitration. Oppose any effort to modify the Halliburton case where the Supreme Court upheld an employer’s right to establish a mandatory obligation program applicable to at-will employees.

Devolution of federal programs to the states. Support transferring control over federally mandated programs like unemployment insurance to the states, thereby reducing employers’ tax burdens and increasing local control over workforce-related programs.

Drug Testing. Oppose attempts to restrict the rights of employers to conduct random and/or universal drug testing of employees.

Drug testing for UI beneficiaries. Support drug testing as a requirement for receipt of unemployment benefits and to certify UI claimants as drug-free applicants.

Employer control over work environment. Support efforts to maintain employers’ prerogative to control the workplace, thereby creating a safe, satisfying and harmonious working environment.

Employment-at-will. Oppose legislation that would erode employment-at-will as a right for all Texas employers and employees.

Ergonomics. Oppose legislation and regulations on a federal level that would increase the already-considerable burden on employers regarding OSHA requirements.

Fair Labor Standards Act reform. Support efforts to reform the wage and hour laws by allowing more flexibility for employers and employees in hours worked during a pay period before mandating overtime pay.

Family and Medical Leave Act. Oppose efforts to modify the FMLA, and oppose any initiatives to require employers to pay for FMLA leave with unemployment insurance taxes.

Fraud control. Support legislation to allow TWC to hire outside contractors on a pay-for-performance basis to assist in efforts to detect and remedy unemployment benefits fraud.

Living-wage ordinances. Oppose piecemeal mandates that vary from city to city requiring employers to pay a wage level higher than the federally required minimum wage.

Minimum wage. Oppose arbitrary increases in minimum wage which cannot be supported by improvements in productivity and that deprive many entry-level workers of job opportunities.

Pay equity. Strongly support the current law.

Payday law reform. Support reform of the Payday Law to achieve greater consistency with provisions of federal law. Support legislation to eliminate the Payday Law’s applicability to non-wage benefits including vacation pay, sick pay, etc. Support capping the amount of wages that may be claimed under the statute.

Public Collective Bargaining Rights. Oppose any expansion of collective bargaining rights in the public sector since the current system adequately provides for employee participation without the potential for disruption of services.

Property Rights of Business Owners. Support the right of employers to protect their employees, customers, suppliers and visitors by prohibiting employees from bringing firearms to work, including having guns in their vehicles in the parking facility.

Right-to-work. Support efforts to keep Texas a right-to-work state and oppose agency shop legislation.

Sexual orientation. Oppose expansion of current coverage of the Texas Human Rights Act that may cause additional litigation.

Subsidized training wage. Support legislation to allow employers to apply part of their unemployment insurance taxes toward the cost of training workers for their businesses.

Unemployment insurance reform. Support unemployment insurance reform to improve effectiveness and reduce the burden to employers, including legislation treating severance pay the same as wages in lieu of notice, tightening work search requirements for claimants, and improving TWC’s verification procedures for unemployment claims.

Unemployment Savings Accounts. Support fundamental changes in the unemployment insurance system that would abolish traditional federally controlled unemployment insurance programs in favor of establishing individual Unemployment Savings Accounts (USAs) for employees. These would be available if needed for unemployment, training, or as a supplement to retirement income.

Union dues check-off. Oppose efforts to allow public employees or require private employers to subsidize or promote labor unions or similar organizations through payroll collection of dues and contributions.