News flash: Texas Legislature zaps employers

We didn’t quite know how to caption the following unbelievable news but did our best. Here’s the scoop: The Texas Labor Code was amended for sexual harassment claims to (1) cover employers with only one employee, (2) allow lawsuits for sexual harassment against a manager/supervisor of any sized employer, and (3) hold companies liable if they fail to take “immediate” corrective action. The law takes effect on September 1, 2021, not April 1! So while this might sound like an April Fool’s joke, it is anything but. Let’s dive deeper.

No April Fool’s Day joke

The law was passed and signed by Governor Greg Abbott at the end of the recent legislative session. It flew under the radar and then popped up. So, here’s the lowdown:

First, an entity is subject to a sexual harassment lawsuit if it has only one (that’s right, one) employee. Currently, the Texas Labor Code requires an employer to employ 15 or more employees to be subject to such a lawsuit. No more. It’s open season on all employers in the state.

Second, a manager or supervisor is considered to be an “employer” for the statute’s purposes. What does that mean? It means a manager or supervisor who engaged in sexual harassment will be subject to a lawsuit and can be held personally liable. That’s right, a prevailing employee can recover damages directly from managers or supervisors, who will need to write out a check for the amount or have their assets seized.