Juan Hernandez of Baker Donelson. Courtesy photo.
Texas Gov. Greg Abbott recently signed two new bills (Senate Bill 45 and House Bill 21) that increase protections for all employees who assert claims of sexual harassment under Chapter 21 of the Texas Labor Code (Chapter 21). Both laws will become effective on Sept. 1. With the enactment of these new laws, Texas employers can expect significant changes related to claims for sexual harassment, including a broader definition of who is considered an “employer,” a heightened standard for employers to respond to internal sexual harassment complaints, and the expansion of the statute of limitations to file with the state agency.
Who is Considered an “Employer?”
Prior to the enactment of Senate Bill 45, to be considered an employer under Chapter 21, a business was required to have 15 or more employees and only the entity could be held liable. However, Senate Bill 45 expands the definition of an employer to encompass any person or entity who employs one or more employees, or “acts directly in the interests of an employer in relation to an employee.” By expanding the definition, businesses or persons who employ even one employee along with individual supervisors can be held liable for sexual harassment claims. Prior to this change, small businesses and individual bad actors could escape liability from sexual harassment lawsuits by arguing that they did not satisfy the “employer” definition. With this change, that defense will no longer be available.
