HBA-TYH H.B. 1960 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1960
By: Grusendorf
Economic Development
3/10/1999
Introduced



BACKGROUND AND PURPOSE 

Current law requires an employer to pay owed wages to a terminated employee
within six days of the termination, even if the employee has been suspected
of theft or fraud.  In such cases, the employer has limited options to
recover his or her loss, including filing a civil action against the
employee.  H.B. 1960 allows an employer to give the wages owed to an
employee to the Texas Workforce Commission for deposit in an
interest-bearing account when the employee has been charged with fraud or
theft.  This bill also specifies the measures to be carried out with regard
to the interest account when the employee has either been convicted or
acquitted of the charges. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter D, Chapter 61, Labor Code, by adding Section
61.068, as follows: 

Sec. 61.068.  EFFECT OF EMPLOYEE INDICTMENT.  (a) Authorizes  the employer,
if an employee is charged with an offense under Chapter 31 (Theft) or 32
(Fraud), Penal Code, in which the victim of the alleged offense is the
employee's employer, to notify the Texas Workforce Commission (commission)
of the charge against the employee and forward the amount of wages owed to
the employee by the employer to the commission for deposit in an
interest-bearing account in the manner provided by Section 61.063 (Payment
to Commission; Escrow Pending Review; Waiver).  
 
(b)  Requires the commission, if the employee is convicted of the offense
for which the employee was charged or is convicted of a lesser, related
offense, to remit from the interest-bearing account to the employer an
amount equal to the amount of wages owed to the convicted employee by the
employer.  Requires the commission to remit any interest earned on the
amount of those wages to the comptroller for deposit in the compensation to
victims of crime fund under Article 56.34 (Compensation), Code of Criminal
Procedure.  
 
(c)  Requires the commission, if the employee is acquitted of the offense
for which the employee was charged or if charges against the employee are
dismissed under Chapter 32 (Dismissing Prosecutions), Code of Criminal
Procedure, to remit the wages collected under this section and any interest
earned on those wages to the claimant employee within 30 days of the
acquittal or dismissal.  

SECTION 2.Effective date: September 1, 1999.
  Makes application of this Act prospective.

SECTION 3.Emergency clause.