74R10637 PB-D
          By Dutton                                              H.B. No. 622
          Substitute the following for H.B. No. 622:
          By Oliveira                                        C.S.H.B. No. 622
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to protection of an employee in the private sector who
    1-3  reports certain activities; providing a civil penalty.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subtitle A, Title 2, Labor Code, is amended by
    1-6  adding Chapter 23 to read as follows:
    1-7         CHAPTER 23.  EMPLOYMENT DISCRIMINATION FOR REPORTING
    1-8                     CERTAIN ACTIVITIES PROHIBITED
    1-9        Sec. 23.001.  DEFINITIONS.  In this chapter:
   1-10              (1)  "Employee" means a person other than an
   1-11  independent contractor who, for compensation, performs services for
   1-12  an employer under a written or oral contract of hire, whether
   1-13  express or implied.
   1-14              (2)  "Employer" means a person who employs five or more
   1-15  employees.
   1-16              (3)  "Law" means:
   1-17                    (A)  a state or federal statute;
   1-18                    (B)  an ordinance of a local government; or
   1-19                    (C)  a rule adopted under a statute or ordinance.
   1-20              (4)  "Report" means a written or oral employee report
   1-21  made under Section 23.003.
   1-22        Sec. 23.002.  EXEMPTION.  This chapter does not apply to an
   1-23  employee of a state agency or local government subject to Chapter
   1-24  554, Government Code.
    2-1        Sec. 23.003.  EMPLOYER RETALIATION PROHIBITED.  An employer
    2-2  may not suspend, demote, or terminate the employment of, or
    2-3  otherwise discriminate against, an employee who in good faith
    2-4  reports activities within the workplace that constitute a violation
    2-5  of law to:
    2-6              (1)  an appropriate law enforcement authority; or
    2-7              (2)  a supervisor, officer, or other appropriate person
    2-8  who exercises managerial authority for the employer.
    2-9        Sec. 23.004.  BURDEN OF PROOF; PRESUMPTION.  An employee who
   2-10  sues under this chapter has the burden of proof, except that if the
   2-11  suspension, demotion, or termination of the employee occurs not
   2-12  later than the 90th day after the date on which the employee
   2-13  reports a violation of law, the suspension, demotion, or
   2-14  termination is presumed, subject to rebuttal, to be because the
   2-15  employee made the report.
   2-16        Sec. 23.005.  RELIEF AVAILABLE TO EMPLOYEE.  (a)  An employee
   2-17  whose employment is suspended, demoted, or terminated or who is
   2-18  discriminated against in violation of Section 23.003 is entitled to
   2-19  sue for:
   2-20              (1)  injunctive relief;
   2-21              (2)  actual damages;
   2-22              (3)  court costs; and
   2-23              (4)  reasonable attorney's fees.
   2-24        (b)  In addition to relief under Subsection (a), an employee
   2-25  whose employment is suspended, demoted, or terminated in violation
   2-26  of this chapter is entitled to:
   2-27              (1)  reinstatement to the employee's former position or
    3-1  a position that is comparable in terms of compensation, benefits,
    3-2  and other conditions of employment;
    3-3              (2)  compensation for wages lost during the period of
    3-4  suspension, demotion, or termination; and
    3-5              (3)  reinstatement of any fringe benefits and seniority
    3-6  rights lost because of the suspension, demotion, or termination.
    3-7        Sec. 23.006.  LIMITATION PERIOD.  Except as provided by
    3-8  Section 23.007, an employee who seeks relief under this chapter
    3-9  must sue not later than the 90th day after the date on which the
   3-10  alleged violation of this chapter:
   3-11              (1)  occurred; or
   3-12              (2)  was discovered by the employee through reasonable
   3-13  diligence.
   3-14        Sec. 23.007.  EXHAUSTION OF GRIEVANCE OR APPEAL PROCEDURES.
   3-15  (a)  An employee must exhaust the employer's grievance or appeal
   3-16  procedures relating to suspension, demotion, or termination of
   3-17  employment or unlawful discrimination, if any, before suing under
   3-18  this chapter.
   3-19        (b)  The employee must invoke the grievance or appeal
   3-20  procedures not later than the 90th day after the date on which the
   3-21  alleged violation of this chapter:
   3-22              (1)  occurred; or
   3-23              (2)  was discovered by the employee through reasonable
   3-24  diligence.
   3-25        (c)  Time used by the employee in exhausting the grievance or
   3-26  appeal procedures is excluded from the period established by
   3-27  Section 23.006.
    4-1        (d)  This section does not apply if a final decision is not
    4-2  rendered before the 31st day after the date on which the employee
    4-3  initiated the grievance or appeal.
    4-4        Sec. 23.008.  VENUE.  An employee may sue under this chapter
    4-5  in a district court of the county in which the employee resides.
    4-6        Sec. 23.009.  CIVIL PENALTY.  (a)  An employer who suspends,
    4-7  demotes, or terminates the employment of an employee in violation
    4-8  of this chapter is liable for a civil penalty not to exceed $1,000.
    4-9        (b)  The attorney general or an appropriate prosecuting
   4-10  attorney may sue to collect a civil penalty under this section.
   4-11        (c)  A civil penalty collected under this section shall be
   4-12  deposited in the state treasury.
   4-13        Sec. 23.010.  NOTICE TO EMPLOYEES.  (a)  Each employer shall
   4-14  inform its employees of their rights under this chapter by posting
   4-15  a conspicuous sign in a prominent location in the employer's
   4-16  workplace.
   4-17        (b)  The Texas Employment Commission by rule shall prescribe
   4-18  the design and content of the sign required by this section.  The
   4-19  commission may combine the contents of the sign required by this
   4-20  section with the content of any other sign required to be posted by
   4-21  an employer by the state.  The commission may assess each employer
   4-22  subject to this chapter a reasonable fee to cover only the costs
   4-23  incurred by the commission in administering this section.
   4-24        SECTION 2.  This Act takes effect September 1, 1995, and
   4-25  applies only to a suspension, demotion, termination, or
   4-26  discriminatory action that is taken on or after that date by an
   4-27  employer against an employee.
    5-1        SECTION 3.  The importance of this legislation and the
    5-2  crowded condition of the calendars in both houses create an
    5-3  emergency and an imperative public necessity that the
    5-4  constitutional rule requiring bills to be read on three several
    5-5  days in each house be suspended, and this rule is hereby suspended.