AUSTIN, Texas - The Texas third court of appeals has issued a stay preventing Austin’s controversial paid sick leave from becoming law until challenges to the ordinance are settled in court.
The ordinance was set to go into effect on October 1st. The Texas Public Policy Foundation filed a lawsuit, saying the Austin ordinance violates Texas law specifically the Texas minimum wage act which is the law for all of Texas.
In February the Austin city council passed the measure which was heavily-debated and, argued over.
The attorney for the TPPF tells FOX-7 Austin the ruling means the city must stand down their efforts to implement the ordinance. The TPPF filed the suit on behalf of the Texas Association of Business and, the National Federation of Independent Businesses.
They sought relief from the court of appeals because they believed the paid sick leave ordinance was unfair and would bring financial hardship to business owners.
Austin Mayor Steve Adler tells FOX-7 Austin:
"The court is just trying to keep everyone in their current positions while it decides the merits of the case. Importantly, the court specifically wrote that this temporary relief should in no way be read as a comment on the merits of the underlying appeal," said Mayor Adler.
Texas Attorney General, Ken Paxton released this statement following the ruling.
"The minimum amount of compensation established for workers, including the minimum amount of paid time off, is a decision entrusted by the Texas constitution solely to the Texas legislature. I’m confident that an appeals court will recognize that the law expressly preempts cities from passing a different law simply because they disagree with the judgment of our state's elected representatives,” said Paxton.