Two Collin County businesses filed lawsuit in federal court in Sherman on Tuesday.
In the court documents, ESI Employee Solutions and Hagan Law Group say they have employees that work in Dallas enough to earn the sick time.
However, the ordinance requires employers to allow employees to use earned leave at any other facility with the same employer, such as Collin County.
The lawsuit says the ordinance extends regulatory power outside of its city limits to violate plaintiffs constitutional rights.
So far, the city of Dallas has no comment on the lawsuit.
It requires all companies in the city to give workers earned paid sick time.
A coalition of ten groups had fought for the measure saying for low wage workers, missing time for illness could have a big impact on getting even the basic necessities like food.
The city councils in Austin and San Antonio both passed a paid sick time ordinance only to see it challenged in court.
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