While most employers think Federal legislation will impact them the most, it’s actually state and local legislation that will have the greatest impact on Texas businesses. It has been years since the Feds have been able to enact any type of meaningful legislation. For example consider E-Verify, Immigration Reform, the Affordable Care Act (enacted but watered down), or even new Wage & Hour laws. The formula to derail any form of legislation is to find a sympathetic Federal judge from your side of the aisle, that will slap a temporary injunction on the new law. Status quo then wins.
Where future changes will come from is at the state and local level. The state or cities are more homogeneous and more likely to agree and work together to enact any new employment law. For example, look at the “Ban the Box” initiative in cities like Austin, Chicago, New York City, Los Angeles, Seattle and eight others, where private employers cannot ask about criminal history until after offering employment. There are also dozens of sanctuary cities across the US. And don’t forget about the growing list of cities that have their own, higher, minimum wage.
Beyond the cities, you have states now legislating more and more employment laws. California is obviously the poster child of state employment legislation. Joined by most states in one form or fashion.
What this means for the employer is that while you must keep a watchful eye on Federal legislation, the real impact in the foreseeable future in employment law will be at the local and state level.
JP Magill, founder of HRX, has been in HR for over 25 years. He has been in the HR outsourcing world for the last 15 years. HRX works with small/mid-sized companies that either do not have an HR department or need more horsepower in their HR department. JP can be reached at jp@magillhrx.com
JP Magill has a driving passion for delivering solutions to small and mid-sized companies. His career spans a professional and entrepreneurial journey of nearly three decades with a focus on building and developing HR functions in high growth and high change environments. As the founder and president of HRX, an HR outsourcing and business strategy firm launched in 2010, JP advises growing companies on the day-to-day issues of solving people problems.
