Two companies sue Dallas in bid to stop paid sick time ordinance | Dallas City Hall


Henneke said the new law also violates state law that prohibits cities from regulating wages; and constitutional rights include freedom of association, equal protection for non-unionized employers, and the right to be free of unreasonable searches and seizures due to the city’s subpoena power to follow up on a complaint.

Henneke said Plano-based ES/Employee Solutions estimated the ordinance would apply to at least 300 employees and would cost its company more than $300,000 a year. Allen-based Hagan Law Group estimated it stood to lose over $15,000 a year.

Henneke threatened the lawsuit in a July 22 letter to the city requesting a delay of the ordinance’s implementation date until Dec. 1. He said he planned to file the lawsuit when the city attorney didn’t agree to the request in a conversation after the letter.

The Dallas Regional Chamber, the North Texas LGBT Chamber of Commerce and the North Dallas Chamber of Commerce on Monday also sent a joint letter to the City Council requesting a delay.

The letter said the groups believed the ordinance “will create inconsistent regulations, confusion, and unnecessary complications for employers and employees across the region and state. 

“The one-size-fits-all approach mandated in the ordinance regarding the record-keeping and method of calculating paid sick leave is not practical for businesses,” the letter said.

The groups suggested litigation involving nearly identical ordinances in Austin and San Antonio necessitated a delay.

The Dallas lawsuit names Mayor Eric Johnson, City Manager T.C. Broadnax and Office of Equity and Human Rights Director Beverly Davis — whose office is in charge of enforcing the ordinance.

Davis said she couldn’t comment on legal matters. Interim City Attorney Chris Caso, Johnson and Broadnax didn’t immediately respond to requests for comment Tuesday.

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