Annie Spilman, state director of NFIB in Texas, released the following statement today in response to a decision by the Texas Court of Appeals, Third District, holding that the state and business groups challenging Austin’s paid sick leave ordinance, including the National Federation of Independent Business, were entitled to an injunction and that the ordinance is preempted by state law:
“This is a big victory for small business. The court affirmed our position that when cities overplay their regulatory hand by creating local ordinances that interfere with employers’ ability to run their businesses, they cause imminent and irreparable harm to those businesses.
“Today’s decision is a big win because it affirms our view that Austin ordinance is unconstitutional. This bodes well for us as we move forward in this case. But then we have always said that the city’s paid sick leave ordinance was more about politics than public policy.”
The case will now be remanded to the lower court for further proceedings consistent with today’s decision. In addition to ruling that Austin’s ordinance is preempted by state law, today’s decision affirmed that NFIB could pursue other constitutional claims if necessary.
NFIB, the state’s leading small-business advocacy organization, joined other business groups and the Texas Public Policy Foundation in filing a lawsuit challenging the legality of an Austin ordinance requiring businesses to offer paid sick leave beginning Oct. 1.