Tax Implications of the Family Leave Pool

Overview

Applicable to

State agencies and institutions of higher education.

Background

The 87th Legislature enacted House Bill 2063, which added Subchapter A-1 to Chapter 661 of Government Code, establishing a state employee family leave pool to give eligible state employees more flexibility to bond with and care for their children during the first year following birth, adoption or foster placement, and to care for a seriously ill family member or themselves, including for pandemic-related illnesses or complications caused by a pandemic.

Under these provisions, state agencies must establish a family leave pool that allows an employee to voluntarily transfer sick or vacation leave earned by the employee to the pool. Employees are eligible to apply for leave from the pool for any of the following reasons after exhausting their own eligible compensatory, discretionary, sick and vacation leave:

• The birth of a child.
• The placement of a foster child or adoption of a child under 18 years of age.
• The placement of any person 18 years of age or older requiring guardianship.
• A serious illness of an immediate family member or the employee, including a pandemic-related illness.
• An extenuating circumstance created by an ongoing pandemic, including providing essential care to a family member.
  — or —
• A previous donation of time to the pool.

Sources

Texas Government Code, Section 661.021-661.026.