86R7268 JSC-D
By: Watson S.B. No. 589
A BILL TO BE ENTITLED
AN ACT
relating to the prohibition of certain required nondisclosure and
arbitration agreements.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 21, Labor Code, is amended
by adding Section 21.0605 to read as follows:
Sec. 21.0605. REQUIRING NONDISCLOSURE OR ARBITRATION
AGREEMENT. An employer commits an unlawful employment practice if
the employer fails or refuses to hire, discharges, harasses, or in
any other manner discriminates against an individual in connection
with compensation, terms, conditions, or privileges of employment
because the individual refuses to sign an agreement prohibited
under Chapter 25.
SECTION 2. Subtitle A, Title 2, Labor Code, is amended by
adding Chapter 25 to read as follows:
CHAPTER 25. CERTAIN NONDISCLOSURE AND ARBITRATION AGREEMENTS
PROHIBITED
Sec. 25.001. DEFINITIONS. For the purposes of this
chapter:
(1) "Sexual assault" means conduct described by
Section 22.011 or 22.021, Penal Code.
(2) "Sexual harassment" means an unwelcome sexual
advance, a request for a sexual favor, or any other verbal or
physical conduct of a sexual nature if:
(A) submission to the advance, request, or
conduct is made a term or condition of an individual's employment,
either explicitly or implicitly;
(B) submission to or rejection of the advance,
request, or conduct by an individual is used as the basis for an
employment decision;
(C) the advance, request, or conduct has the
purpose or effect of unreasonably interfering with an individual's
work performance; or
(D) the advance, request, or conduct has the
purpose or effect of creating an intimidating, hostile, or
offensive working environment.
Sec. 25.002. CERTAIN AGREEMENTS PROHIBITING REPORTING OR
DISCLOSURE OF SEXUAL ASSAULT OR SEXUAL HARASSMENT VOID AND
UNENFORCEABLE. A nondisclosure or confidentiality agreement or
other agreement between an employer and an employee is void and
unenforceable as against the public policy of this state to the
extent the agreement:
(1) prohibits the employee from notifying, or limits
the employee's ability to notify, a local or state law enforcement
agency or any state or federal regulatory agency of sexual assault
or sexual harassment committed by an employee of the employer or at
the employee's place of employment; or
(2) prohibits an employee from disclosing to any
person, including during any related investigation, prosecution,
legal proceeding, or dispute resolution, facts surrounding any
sexual assault or sexual harassment committed by an employee of the
employer or at the employee's place of employment, including the
identity of the alleged offender.
Sec. 25.003. MANDATORY ARBITRATION AGREEMENT COVERING
DISPUTE INVOLVING ALLEGATION OF SEXUAL ASSAULT OR SEXUAL HARASSMENT
VOID AND UNENFORCEABLE. A mandatory arbitration agreement between
an employer and an employee is void and unenforceable as against the
public policy of this state to the extent the agreement imposes
mandatory arbitration of a dispute involving an allegation of
sexual assault or sexual harassment.
Sec. 25.004. CIVIL SETTLEMENT AGREEMENTS. (a) This
section applies to a settlement agreement related to a claim filed
in a civil action or a complaint filed in an administrative action
involving sexual assault or sexual harassment committed by an
employee of the employer or at the employee's place of employment.
(b) This chapter does not prohibit a settlement agreement to
which this section applies that contains a provision that prevents
the disclosure of factual information related to the claim or
complaint.
SECTION 3. (a) Section 21.0605, Labor Code, as added by
this Act, applies only to an unlawful employment practice that
occurs on or after the effective date of this Act.
(b) Sections 25.002 and 25.003, Labor Code, as added by this
Act, apply to an agreement entered into before, on, or after the
effective date of this Act.
SECTION 4. This Act takes effect September 1, 2019.