JKM H.B. 40 75(R)BILL ANALYSIS


ECONOMIC DEVELOPMENT
H.B. 40
By: McCall
4-2-97
Committee Report (Amended)



BACKGROUND 

Texas law currently hinders employers from sharing information with other
employers as it relates to hiring practices.  Currently, an employer risks
being sued for libel or violation of privacy if they engage in the sharing
of pertinent and relevant information with another prospective employer.
If the employer does not share the information with the prospective
employer, then they run the risk of being sued for withholding important
information.  

PURPOSE

To provide immunity to an employer for the truthful disclosure of
information about a current or past employee. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 3 of the Labor Code by adding Chapter 103.

Sec. 103.001 defines "employee," "employer," "job performance,"
"prospective employee,"  and "prospective employer." 

Sec. 103.002 authorizes disclosure by an employer at the request of
prospective employer about the job performance of a former or current
employee. 

Sec. 103.003(a) states that on receipt of a written request by an
applicant for employment, a prospective employer shall provide to the
applicant copies of any written communications from current or former
employers that may reasonably be believed to affect the applicant's
possibility of employment with the prospective employer.  (b)  The
applicant must make a request under Subsection (a) no later than 30 days
after the day on which the applicant has completed the application process
required by the employer. 

Sec. 103.004 (a) Grants immunity for an employer who discloses information
regarding a current or former employee.  The employer is not immune from
liability if it is proven by a preponderance of the evidence that the
employer knew the information was false at the time of disclosure or was
made with reckless disregard of whether the disclosure was false or not.
(b) States that this chapter applies to a managerial employee or  other
representative of the employer who is authorized to  provide and provides
information in accordance with this chapter. 

Sec. 103.005 This chapter does not require an employer to provide an
employment reference to or about a current or former employee. 

SECTION 2. States that Chapter 103, Labor Code, as added by this Act,
applies only to a cause of action that accrues on or after the effective
date of this Act. 

SECTION 3. Effective Date September 1, 1997.

SECTION 4.    Emergency clause.

EXPLANATION OF AMENDMENTS

Amendment #1 amends SECTION 1, Sec. 103.004, to grant immunity from
liability for defamation, rather than granting civil immunity, based on
disclosure or any damages caused by disclosure unless it is proven by a
preponderance of  the evidence that the information was known to be false,
or was made with reckless disregard of whether it was false or not, at the
time of disclosure.