Countless businesses have found success in the Lone Star State—not just thanks to low taxes or a business-friendly mindset, but also due to core legal protections aimed at simplifying growth. The Texas Regulatory Consistency Act (HB 2127), signed by Gov. Greg Abbott on June 13, 2023, is a prime example of this pro-growth regulatory environment.
This law was introduced after Texas county and city governments began contemplating and implementing their own minimum wage laws and mandated PTO laws. The legislature wanted to prevent the 254 counties and +1,200 municipalities from creating their own patchwork of HR and business compliance laws that are often seen in states like California, Colorado, and New York.
Ending the Patchwork of Local Regulations
Before HB 2127, towns and counties across Texas could impose unique rules—from labor standards to finance to environment—creating confusion and added cost for businesses operating in multiple jurisdictions. HB 2127 restores statewide regulatory uniformity, ensuring that where the state already regulates, cities cannot add conflicting rules.
This means that there is one statewide rulebook—no surprises when you cross city limits in Texas.
Legal Tools to Protect Your Business
HB 2127 empowers anyone—business owners, trade associations—with the legal right to sue if local governments try to enforce rules that conflict with state law. It also waives municipal immunity, meaning local governments can’t hide behind legal shields when they overstep.
A Consistent Climate for Scaling Up
For startups eyeing expansion to Austin, Dallas, San Antonio, Houston, or smaller towns, HB 2127 is a huge win. Uniform compliance rules remove a major hurdle for Texas-bound franchises, regional chains, and homegrown businesses. It also reduces opportunities for hidden local policy traps like surprise labor ordinances or permit mandates.
Grow with Confidence
Employers One Source Group (E1) offers HR, compliance, payroll, and benefits administration services tailored for small and medium-sized businesses. As you expand your business in Texas, let us handle your back-office needs, freeing you to focus on growth and innovation. With our personalized, Katy-based support and cutting-edge technology, you can confidently take your business to the next level.
Call us at 281-492-9292 or email us at sales@eosg.com to learn more.
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