This is bad for society.
The city’s new ordinance mandating that most private businesses in Austin provide paid sick leave to employees — heralded by supporters as the most progressive labor policy in Texas when it won approval two months ago — is facing a legal challenge to prevent it from ever taking effect.
Proponents of Austin’s sick-leave rules, which are slated to begin Oct. 1, already faced the likelihood that some conservative state lawmakers would try to supersede the city’s authority by filing bills to overturn the new ordinance when the Legislature convenes again in January.
But a coalition of business organizations, including the Texas Association of Business and the National Federation of Independent Business, are aiming to render the rules toothless regardless. The group — with legal representation from the Texas Public Policy Foundation, a conservative think tank — filed a lawsuit in Travis County state District Court on Tuesday, seeking temporary and permanent injunctions against city enforcement.
“We needed to move quickly and stop any bleeding that might occur from this ordinance,” said Jeff Moseley, chief executive of the Texas Association of Business, which is the state’s most powerful business lobbying group. “It’s overreaching (by the city government), and it’s hard-hitting to small employers.”
Work Strong Austin, an activist group that supported the ordinance, called the lawsuit frivolous and said the business groups involved in it are “seeking to undermine the democratic process and take away this basic human right and public health protection right from 223,000 working families” in the city.
The ordinance requires that most private Austin employers give each worker up to 64 hours — or eight full eight-hour workdays — of paid sick leave per year. Small businesses with 15 or fewer employees are required to meet a lower cap of 48 hours of paid sick leave per year, or six workdays.
I’m going to let Ed Sills, in his email newsletter from Wednesday, break this one down:
The public policy rationales are solid as a rock. The public health argument alone should resonate for everyone. Who wants flu victims preparing food at a restaurant because they can’t afford to sit out an illness? Who wants to sit next to someone on a bus if they have a cold?
The arguments in the lawsuit are frivolous and fatuous. TPPF is saying the ordinance violates the state’s prohibition on local minimum wage increases because paid sick leave is a form of a wage increase. That is utter nonsense.
If a benefit like paid sick leave counted toward fulfilling the minimum wage, employers right and left would pay less than $7.25 an hour and count the value of benefits they already offer toward the wage floor. Employers know they would be laughed out of court and roasted in the court of public opinion if they tried that.
The other “big idea” from TPPF is something called “substantive due process,” and therein lies a danger. Substantive due process reasoning was used by some judges in the first few decades of the 20th Century to strike down minimum wage, maximum hour and other laws. Unlike procedural due process, which guarantees fair trials and other safeguards that enable people in our legal system to make their cases, “substantive due process” was historically a card for employers to play when they didn’t like laws enacted by majorities to protect working people.
The U.S. Supreme Court occasionally recognized substantive due process, and a few examples are instructive. In 1905, the high court overturned a New York law limiting bakery employees to 60 hour a week. In 1923, the high court struck down minimum-wage laws using substantive due process analysis. In 1925, the court struck down laws banning “yellow-dog contracts” that required employees to agree not to join a labor union (this was in the pre-National Labor Relations Act days).
A changing majority on the Supreme Court during the Franklin Roosevelt era eventually flushed away substantive due process. By 1955, a unanimous court declared in Williamson v. Lee Optical of Oklahoma, “The day is gone when this Court uses the Due Process Clause of the Fourteenth Amendment to strike down state laws, regulatory of business and industrial conditions, because they may be unwise, improvident, or out of harmony with a particular school of thought.” The law upheld in the case was a state requirement that eyeglasses be fitted and duplicated by licensed optometrists or ophthalmologists.
The law is on the side of the paid sick leave ordinance, but the infection of the law by politics may be a different story. I would not bet my house, my car or even my fidget spinner that the Texas Supreme Court would uphold a paid sick leave ordinance. The high civil court is a haven for the business community in Texas. Moreover, Gov. Greg Abbott and elements of the Texas Legislature will take a shot at the ordinance – and potentially at ordinances that voters in San Antonio and Dallas might be considering in November – in the next legislative session.
One argument the business community will make to overturn Austin’s ordinance, and to preempt other cities from following suit, is that it’s just too hard on businesses that operate statewide to comply with different rules in different cities. (As if the more-than-statewide businesses don’t already have to do that outside Texas.) But fine, if that’s the problem, then pass a sick leave law at the state level, or even better in Congress. Sick people should be home getting better and not infecting everyone around them, so take away the economic incentive for them to drag their contagious selves to work. I do not understand the argument against that. KUT and Fox 7 Austin have more.