What Employers and Employees Need to Know

Recent revisions to the Texas Labor Code have significantly expanded employee protections and increased employer exposure in sexual harassment cases. Effective September 1, 2021, the Texas Legislature enacted new laws creating a clear, independent cause of action for sexual harassment under state law. This allows employees to pursue claims directly under Texas law without relying solely on federal statutes, making it easier to bring and sustain claims in state court.

One of the most impactful changes is the expansion of who qualifies as an employer. The law now applies to any business with one or more employees, eliminating the prior 15-employee threshold. Notably, liability is no longer limited to the company itself—individuals such as supervisors and managers may be held personally liable if they act in the interest of the employer and fail to address harassment. This significantly broadens the scope of potential defendants and increases risk for businesses of all sizes.

The amendments also impose a heightened duty on employers to respond promptly and effectively to complaints. An employer may be liable if it knew or should have known of harassment and failed to take “immediate and appropriate corrective action.” Additionally, the deadline for filing a complaint has been extended from 180 to 300 days, giving employees more time to come forward. These changes reflect a clear legislative intent to increase accountability and require proactive compliance.