Texas keeps close to the federal rules. Two points are worth knowing before you plan benefits.
Leave
According to the Texas Workforce Commission, no current Texas or federal law requires private employers to provide paid or unpaid leave of any kind. Some unpaid leave may still be needed as a reasonable accommodation, for example for a disability or pregnancy.
That leaves paid time off up to you. A written policy still helps staff know what to expect.
Continued health coverage
Federal COBRA generally applies to employers with 20 or more employees. Texas adds state continuation:
- A worker who is not eligible for COBRA may be able to continue group coverage for nine months after the job ends.
- Texas law requires some group plans to continue coverage for six months after COBRA coverage ends.
- State continuation applies only to plans subject to Texas insurance law. It does not apply to self-funded plans.
Questions to bring to your advisor
- Is the plan we are looking at subject to Texas insurance law or self-funded?
- How would state continuation apply to our people?
- What paid time off policy makes sense for our team?
