HBA-ATS, RAR C.S.H.B. 341 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 341
By: McCall
Business & Industry
3/16/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Under current law, an employer can be found liable for disclosing or
withholding certain information about current or former employees.
C.S.H.B. 341 provides immunity from civil liability to an employer who
discloses certain information about current or former employees if the
employer did not know the information to be false at the time of
disclosure. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 3, Labor Code, by adding Chapter 103, as follows:

CHAPTER 103.  DISCLOSURE BY EMPLOYER OF INFORMATION REGARDING CERTAIN
EMPLOYEES OR FORMER EMPLOYEES 

Sec. 103.001.  DEFINITIONS.  Defines "employee," "employer," "job
performance," "prospective  employee," and  "prospective employer."  

Sec. 103.002.  AUTHORIZED DISCLOSURE.  Authorizes an employer to disclose
information about a current or former employee's job performance to a
prospective employer of the current or former employee on the request of
the prospective employer or the employee. 

Sec. 103.003.  IMMUNITY FROM CIVIL LIABILITY; EMPLOYER REPRESENTATIVES.
Provides that an employer who discloses information about a current or
former employee under Section 103.002 is immune from civil liability for
that disclosure or any damages proximately caused by that disclosure unless
it is proven by the preponderance of the evidence that the information
disclosed  was known by that employer to be false at the time the
disclosure was made.  Defines "known," for purposes of this section, to
mean actual knowledge based on information relating to the employee that is
retained, at the time of the disclosure, in the file maintained by the
employer on that employee, and includes a transcription of any information
conveyed orally by the employer to the employee.  Provides that this
chapter applies to a managerial employee or other representative of the
employer, who is authorized to provide and who provides information, in the
same manner that it applies to an employer. 

Sec. 103.004.  EMPLOYMENT REFERENCE.  Provides that this chapter does not
require an employer to provide an employment reference to or about a
current or former employee. 

SECTION 2.  Makes application of this Act prospective.

SECTION 3.  Effective date: September 1, 1999.

SECTION 4.  Emergency clause.
 
COMPARISON OF ORIGINAL TO SUBSTITUTE

SECTION 1.  C.S.H.B. 341 modifies the original bill by redefining "job
performance" to mean the manner in which an employee performs a position of
employment, including an analysis of the employee's attendance at work,
attitudes, effort, knowledge, behaviors, and skills.  Previously, H.B. 341
defined "job performance" as the manner in which an employee performs the
duties and responsibilities of a position of employment, including an
analysis of the employee's attendance at work, attitude toward the job,
effort, knowledge, and skills, as exemplified through evaluations, awards,
demotions, promotions, disciplinary actions, and other analogous personnel
actions. 

C.S.H.B. 341 modifies the original bill by including the definition of
"known" in the subsection that provides immunity from civil liability to an
employer who discloses certain information about current or former
employees if the employer had not known that the information was false at
the time of disclosure. 

C.S.H.B. 341 modifies the original bill by deleting a provision that would
have required a prospective employer to provide to any applicant, no later
than the 30th day after receipt of written request by the applicant,
copies of all written communications from current and former employers of
the applicant that may be reasonably believed to affect the applicant's
possibility of employment with the prospective employer.  The deleted
provision would have also required an applicant for employment to make such
request no later than the 30th day after the date on which the applicant
completes the application process required by the prospective employer. 

C.S.H.B. 341 modifies the original bill by making conforming changes.