WAGE THEFT

Houston Code of Ordinances ch. 15, art. IV

in effect

Houston Code of Ordinances § 15-61 Definitions.

Sec. 15-61. - Definitions. In this article: Adjudicated or adjudication means a judgment by a civil court, in a civil action brought under the Texas Theft Liability Act or the Texas Pay Day Act, finding that an employer failed to pay wages for which judgment no appeal is available. Commission means the Texas Workforce Commission. Contract or city contract means any contract let by the city for the construction of any public improvement or the purchase of goods or services. Conviction or convicted means, for purposes of this article, a final adjudication of guilt relating to a criminal offense for which no further appeal is available. Employee means an individual who is employed by an employer for compensation. The term does not include a person related to the employer or the employer's spouse within the first or second degree by consanguinity or affinity, as determined under Chapter 573, Government Code, or an independent contractor. Employer means a person who employs one or more employees as set forth in Texas Labor Code, Section 61.001(4)(A). Inspector General or IG means the person in charge of the Office of the Inspector General created by Executive Order No. 1-39 or his designee. Wages means compensation owed by an employer to an employee for labor or services rendered by the employee to the employer, whether computed on a time, task, piece, commission or other basis, but shall exclude any deduction authorized by section 61.018, Texas Labor Code. Wage theft means action by an employer that, with intent to avoid payment of any wages for a service that the employer knows is provided only for compensation, intentionally or knowingly secures the performance of the service by agreeing to provide compensation and, after the service is rendered, fails to make payment after receiving notice demanding payment. In no event shall wage theft be interpreted to include a dispute over wage rates. (Ord. No. 2013-1081, § 4, 11-20-2013)

Houston Code of Ordinances § 15-62 Wage theft complaint involving city contracts; procedures.

Sec. 15-62. - Wage theft complaint involving city contracts; procedures. (a) A person employed in connection with a city contract who has a good faith belief that he is the victim of wage theft may file a wage theft complaint with the Inspector General on a form prescribed by the IG. (b) The IG shall first determine whether a wage theft complaint alleges wage theft as defined in this article and, if the complaint is found deficient in that regard, shall dismiss the complaint. A complaint shall likewise be dismissed, and the complainant referred to the commission, if no city contract is involved in the complaint. No record shall be maintained relating to any complaint dismissed under this section. (c) If the IG is satisfied that a complaint alleges sufficient facts to support further inquiry, the complaint shall be investigated in a manner consistent with similar investigations of employee misconduct or other matters by a person trained in employment law, including the taking of sworn statements from the complainant and the employer's personnel and the inspection of relevant records. (d) Upon completion of the investigation of a wage theft complaint, the IG shall determine whether the complaint is meritorious and sustain or dismiss the complaint. (e) In the event a wage theft complaint is sustained, the IG shall affirmatively seek to resolve the complaint via payment of wages due the complainant by the employer. (f) The city or the employer may request that the complaint be resolved by mediation. (g) If no resolution is achieved, the complainant shall be referred to the commission unless the same claim is then on file with that agency. The matter shall also be referred to the city attorney for appropriate action in the best interests of the city. (h) Should the IG determine, with respect to a wage theft complaint, that the complainant also filed the same complaint with the commission, the IG shall seek to determine status of the complaint at the commission and, if it appears that the commission may conclude its action on that complaint within a reasonable period of time, may abate his review or investigation pending the final resolution of the complaint by the commission. (Ord. No. 2013-1081, § 4, 11-20-2013)

Houston Code of Ordinances § 15-63 Wage theft database; creation; procedures.

Sec. 15-63. - Wage theft database; creation; procedures. (a) The finance director shall create and maintain on the city's website a publicly accessible database of all employers located or operating within the area described in the definition of 'local firm' in section 15-82 of this Code that have been: (1) Convicted of a criminal offense under Section 61.019, Texas Labor Code or Section 31.04(a)(4), Texas Penal Code, for engaging in wage theft; (2) Assessed an administrative penalty under Section 61.053, Texas Labor Code and such order has not been satisfied before becoming final and non-appealable; or (3) Adjudicated by a court of competent jurisdiction as having engaged in wage theft and such judgment has not been satisfied before becoming final and non-appealable. (b) For purposes of this section, any conviction of an employer for wage theft occurring within the five year period preceding the effective date of this article or at any time thereafter shall be cause for inclusion in the database. No assessment of an administrative penalty relating to wage theft or adjudication of wage theft by a civil court prior to the effective date of this article shall be a basis for including an employer in the database. (c) No employer shall be included in the database unless: (1) The finance director has received confirmation from the Inspector General that an employer has met at least one of the criteria set forth in subsection (a) of this section; or (2) The employer named in such complaint has received 30 days' written notice of the city's intent to place its name in the database and has failed to demonstrate that the criteria for placement on the database have not been met. (d) An employer shall be removed from the database if more than five years has elapsed since the date of the employer's most recent conviction, adjudication, or assessment of administrative penalty relating to wage theft, as set forth in subsection (a) of this section. (Ord. No. 2013-1081, § 4, 11-20-2013; Memorandum of 1-23-2014)

Houston Code of Ordinances § 15-64 Retaliation prohibited; adverse action.

Sec. 15-64. - Retaliation prohibited; adverse action. (a) No city contractor shall retaliate against any person who has filed a wage theft complaint in good faith pursuant to this article. If the Inspector General determines that retaliation has occurred, the employer shall be subject to the sanctions provided in this article. For purposes of this provision, retaliation means action to discharge from employment, discipline or otherwise punish an employee for filing a wage theft complaint in good faith. (b) No department shall take any adverse action against an employer based solely on the filing of a wage theft complaint under this article. (Ord. No. 2013-1081, § 4, 11-20-2013)

Houston Code of Ordinances § 15-65 Sanctions.

Sec. 15-65. - Sanctions. (a) If, at the time an employer is included in the wage theft database, the employer is then serving as a contractor, subcontractor or as a goods or materials supplier in connection with any city contract, the finance director and Inspector General shall notify the city attorney who may take appropriate action to serve the best interests of the city, including the use of remedies provided by the city's contract with the employer. (b) If an employer included in the wage theft database currently holds, or wishes to apply for or renew, an occupational license or permit listed in section 1-10(b)(8) of this Code, the appropriate director or other licensing official or board shall, for a period of five years following the employer's inclusion in the wage theft database, revoke or refuse to issue or renew any such occupational license or permit, provided such action is based upon the employer's conviction of an offense set forth in section 1-10(b)(8) of this Code. (c) Each licensing official or board shall notify the employer in writing by certified mail of the refusal to issue, revocation of, or refusal to renew, the license or permit pursuant to the preceding subsection and shall cite the violation of this article and section 1-10(b)(8) of this Code as the grounds on which such decision was made. The employer shall have all applicable rights of appeal or contest relating to the refusal to issue or renew or to the revocation of a license or permit under this section. (Ord. No. 2013-1081, § 4, 11-20-2013)

Source: City of Houston, Code of Ordinances and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/tx/houston/codes/code_of_ordinances?nodeId=COOR_CH15CO_ARTIVWATHFetched: 10/26/2026