On September 1, 2021, the legal landscape of sexual harassment claims in the State of Texas changed dramatically. Namely, House Bill 21 and Senate Bill 45 went into effect and were codified in Section 21 of the Texas Labor Code. These laws greatly expanded protections against sexual harassment for employees and placed new compliance guidelines on all Texas businesses, regardless of size. While these laws have been “on the books” for less than three years, they have already made a profound impact.
Historically, Chapter 21 of the Texas Labor Code prohibited employers with fifteen (15) or more employees from engaging in discrimination. Senate Bill 45 (as enacted in Section 21.141 of the Texas Labor Code) now provides that, for purposes of a sexual harassment claim, an “employer” is “a person who: (A) employs one or more employees; or (B) acts directly in the interests of an employer in relation to an employee.” (emphasis added). Therefore, this new definition eliminates the 15-employee minimum for sexual harassment claims and, by doing so, greatly increases the number of Texas businesses to which the law applies.
Section 21.142 further creates potential liability for employers, including supervisors/managers, who fail to act. “An employer commits an unlawful employment practice if sexual harassment of an employee occurs and the employer or the employer’s agents or supervisors: (1) know or should have known that the conduct constituting sexual harassment was occurring; and (2) fail to take immediate and appropriate corrective action.” Thus, supervisors and managers must now be more vigilant that ever and take prompt and remedial action if they become aware of (or even suspect) sexual harassment.
Finally, employees alleging sexual harassment under state law now have 300 days to file a complaint with the Texas Workforce Commission. Previously, an employee only had 180 days under state law to submit a complaint about any type of unlawful employment practice. While employees who are considering filing a claim should not delay speaking with an attorney, the extended deadline for sexual harassment claims helps employees pursue claims before they become time-barred.