Texas Senate Bill SB589

Texas 2019 - 86th Regular

Caption

Relating to the prohibition of certain required nondisclosure and arbitration agreements.

Impact

By disallowing mandatory arbitration agreements related to allegations of sexual assault and harassment, SB589 aims to empower employees to pursue justice through the courts rather than being forced into private arbitration, which can sometimes limit their options for relief. This change in law reflects a shift towards prioritizing the rights of individuals to speak out and seek recourse against workplace misconduct. Employers and employees alike may have to reevaluate their contractual obligations and employment policies to comply with these new provisions.

Summary

SB589 addresses the issue of nondisclosure and mandatory arbitration agreements in the context of sexual assault and sexual harassment allegations in the workplace. The bill explicitly declares that any nondisclosure or confidentiality agreements requiring silence on such matters are void and unenforceable if they prevent reporting to law enforcement or limit disclosure during investigations or legal proceedings. The purpose of the bill is to promote transparency and accountability in cases of sexual misconduct at work, ensuring that victims can safely report incidents without the fear of legal repercussions or punitive actions from employers.

Contention

The enactment of SB589 may lead to significant pushback from various sectors, particularly from employers who view mandatory arbitration as a means of resolving disputes efficiently. Critics of the bill argue that abolishing such agreements could lead to an increase in public litigations, potentially exposing companies to reputational damage and financial liabilities. Furthermore, concerns have been raised about the implications for workplace culture, as employers may be more hesitant to hire or retain employees if they perceive an elevated risk of litigation related to sexual misconduct claims.