Workforce Policy Reset
Immigration enforcement grants, workers' comp funding changes, and unemployment modernization — these bills affect every Texas employer differently depending on industry, location, and workforce composition.
The Bottom Line
The headline bill is SB 8 — creating a grant program for sheriffs who enter 287(g) agreements with ICE. But the practical impact for employers goes beyond immigration enforcement. This package touches every aspect of workforce management: hiring practices, workers' comp costs, and unemployment claim processing.
The geographic factor: SB 8 operates at the county level. Sheriffs decide whether to participate. This means immigration enforcement intensity will vary significantly across Texas — creating operational complexity for multi-location employers.
The cost factor: SB 1455 changes how workers' compensation regulation is funded, authorizing new surcharges. Every employer paying workers' comp premiums should understand the potential cost implications.
SB 8: The Political Lightning Rod
Compliance Urgency
CriticalCost Impact
High (Varies by Location)Primary Author
Sen. Charles Schwertner (R)
What It Does
- →Creates a grant program for sheriffs who enter 287(g) agreements with ICE
- →Provides state funding to cover implementation costs for participating counties
- →Creates county-by-county variation in immigration enforcement intensity
For Employers: The Geographic Question
Your workforce exposure depends on which counties you operate in and which sheriffs participate. Multi-location employers may face different enforcement environments across their Texas operations.
What's NOT Settled
Which Sheriffs Will Participate? (SB 8)
The grant program is voluntary. Each sheriff decides whether to apply for funding and enter a 287(g) agreement. Watch for announcements from sheriffs in counties where you operate.
Who decides: Individual County Sheriffs, with grant administration by the Governor's Office
Workers' Comp Surcharge Amounts (SB 1455)
The bill authorizes new surcharges to fund workers' compensation regulation. The Texas Department of Insurance will determine surcharge levels through rulemaking.
Who decides: Texas Department of Insurance
Unemployment System Changes (HB 3699)
The Texas Workforce Commission will implement modernized initial claims processing. Employers should watch for changes to response timelines and documentation requirements.
Who decides: Texas Workforce Commission
Water Conservation Credit Criteria (SB 14)
Developers can receive impact fee credits for water conservation projects. Local political subdivisions will determine qualifying project criteria and credit amounts.
Who decides: Individual cities and water districts
The Bills
| Bill | Description |
|---|---|
| SB 8 | Sheriff-ICE immigration enforcement agreements and grants |
| SB 1455 | Workers' compensation regulation funding mechanism |
| HB 3699 | Initial unemployment compensation claims modernization |
| SB 14 | Impact fee credits for water conservation projects |
| SJR 27 | Constitutional amendment on judicial conduct commission |
What Smart Operators Are Doing Now
Map Your County Exposure
Identify which Texas counties you operate in. Monitor sheriff announcements about 287(g) participation. Understand your workforce composition in each location.
Audit I-9 Compliance
Regardless of which counties participate in SB 8, ensure your I-9 documentation is complete and current. Enhanced enforcement anywhere creates risk everywhere.
Monitor TDI Rulemaking
The Texas Department of Insurance will set workers' comp surcharge levels. Employers and insurers should participate in the rulemaking process to influence cost impacts.
Update HR Processes
TWC's unemployment claim modernization (HB 3699) may change employer response requirements. Review your unemployment claim response procedures before January 1.
Industry-Specific Considerations
Construction & Trades
High workforce mobility across counties means exposure to varying enforcement regimes. Subcontractor compliance becomes critical. Workers' comp surcharge changes affect already-high premium costs.
Agriculture
Seasonal workforce patterns create unique exposure. Border county operations may see different enforcement intensity. H-2A program compliance documentation becomes even more important.
Hospitality & Food Service
High-turnover industries face documentation challenges. Urban/suburban county enforcement variation matters for multi-location operations. Unemployment claim volumes make TWC changes relevant.
Manufacturing
Workers' comp costs are significant budget items. Border region manufacturing faces heightened enforcement attention. E-Verify and I-9 audit readiness is essential.
How We Help
JD Key Consulting helps Texas employers navigate workforce policy at the state and local level. We work with clients who need to understand their regulatory exposure and engage strategically with agencies implementing new requirements.
- Monitoring county-level SB 8 implementation and sheriff participation
- Engagement with TDI on workers' compensation surcharge rulemaking
- 90th Legislature positioning on workforce and immigration policy
Note: We focus on policy-level engagement and strategic positioning. For immigration legal advice, we partner with qualified immigration attorneys.
Your Workforce Exposure Varies by Location
These bills affect every Texas employer differently. Understanding your specific exposure is step one. Shaping implementation is step two. Let's talk.
Frequently Asked Questions
What is Texas SB 8 immigration enforcement?
SB 8 creates a grant program for Texas sheriffs who enter 287(g) agreements with ICE, effective January 1, 2026. The program is voluntary - each sheriff decides whether to participate. This creates county-by-county variation in immigration enforcement intensity across Texas.
How does Texas SB 8 affect employers?
SB 8 affects employers differently based on location and workforce composition. Multi-location employers may face varying enforcement environments across Texas counties. Employers should map their county exposure, audit I-9 compliance, and monitor sheriff announcements about 287(g) participation.
What are Texas workers' compensation changes under SB 1455?
SB 1455 changes how workers' compensation regulation is funded, authorizing new surcharges effective January 1, 2026. The Texas Department of Insurance will set surcharge levels through rulemaking. Every employer paying workers' comp premiums should understand potential cost implications and participate in TDI rulemaking.
What is HB 3699 Texas unemployment modernization?
HB 3699 modernizes initial unemployment compensation claims processing at the Texas Workforce Commission, effective January 1, 2026. Employers should watch for changes to response timelines and documentation requirements, and review unemployment claim response procedures before the effective date.
Which industries are most affected by Texas workforce policy changes?
Construction and trades (workforce mobility, subcontractor compliance), agriculture (seasonal workers, border counties, H-2A programs), hospitality (high turnover, documentation challenges), and manufacturing (workers' comp costs, border region enforcement) face significant exposure to these changes.