Texas 2025 - 89th Regular

Texas House Bill HB5425 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R16176 KKR-D
2	2	By: Morales of Harris H.B. No. 5425
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to prohibiting certain nondisclosure or non-disparagement
10	10	agreements by employers; creating a civil cause of action.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subtitle A, Title 2, Labor Code, is amended by
13	13	adding Chapter 25 to read as follows:
14	14	CHAPTER 25. CERTAIN NONDISCLOSURE AND NON-DISPARAGEMENT
15	15	AGREEMENTS PROHIBITED
16	16	Sec. 25.001. DEFINITIONS. In this chapter:
17	17	(1) "Employee" means an individual who performs
18	18	services for an employer for compensation under an oral or written
19	19	contract of hire, whether express or implied.
20	20	(2) "Employer" has the meaning assigned by Section
21	21	61.001.
22	22	Sec. 25.002. EXEMPTIONS. This chapter does not prohibit:
23	23	(1) enforcement of a provision in any agreement that
24	24	prohibits the disclosure of the amount paid in a settlement
25	25	agreement; or
26	26	(2) an agreement that lawfully protects trade secrets,
27	27	proprietary information, or confidential information not subject
28	28	to this chapter.
29	29	Sec. 25.003. PROVISIONS OF CERTAIN AGREEMENTS VOID AND
30	30	UNENFORCEABLE. Any provision of a nondisclosure, confidentiality,
31	31	or non-disparagement agreement or any other agreement between an
32	32	employer and an individual who is an employee or independent
33	33	contractor is void and unenforceable as against the public policy
34	34	of this state if the provision prohibits the individual from
35	35	disclosing or discussing conduct that the individual reasonably
36	36	believes is a violation of state or federal law, including a
37	37	violation of law related to:
38	38	(1) wages;
39	39	(2) discrimination;
40	40	(3) harassment;
41	41	(4) retaliation; or
42	42	(5) sexual assault.
43	43	Sec. 25.004. PROHIBITED CONDUCT BY EMPLOYER. An employer
44	44	may not:
45	45	(1) discriminate or retaliate against an individual
46	46	because the individual:
47	47	(A) discloses or discusses conduct that the
48	48	individual reasonably believes is a violation of law described by
49	49	Section 25.003; or
50	50	(B) refuses to sign an agreement prohibited by
51	51	this chapter;
52	52	(2) request or require that an individual sign an
53	53	agreement prohibited by this chapter; or
54	54	(3) attempt to enforce a provision of an agreement
55	55	prohibited by this chapter, whether through a lawsuit, a threat to
56	56	enforce, or any other attempt to influence an individual to comply
57	57	with a provision in any agreement that is prohibited by this
58	58	chapter.
59	59	Sec. 25.005. CIVIL ACTION. (a) An individual aggrieved by
60	60	a violation of this chapter may bring a civil action against the
61	61	employer to enforce rights protected by this chapter.
62	62	(b) An individual who prevails in a civil action under this
63	63	section is entitled to recover from the employer:
64	64	(1) damages in an amount equal to the greater of:
65	65	(A) actual damages incurred; or
66	66	(B) $10,000; and
67	67	(2) reasonable attorney's fees and costs.
68	68	Sec. 25.006. LIBERAL CONSTRUCTION. This chapter shall be
69	69	liberally construed to effectuate its purposes.
70	70	SECTION 2. (a) Section 25.003, Labor Code, as added by this
71	71	Act, applies to an agreement entered before, on, or after the
72	72	effective date of this Act.
73	73	(b) Sections 25.004 and 25.005, Labor Code, as added by this
74	74	Act, apply only to a cause of action that accrues on or after the
75	75	effective date of this Act.
76	76	SECTION 3. This Act takes effect September 1, 2025.