By Burnam H.B. No. 300 77R1189 KSD-D 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 25 to read as follows: 1-7 CHAPTER 25. EMPLOYMENT DISCRIMINATION FOR REPORTING 1-8 CERTAIN ACTIVITIES PROHIBITED 1-9 Sec. 25.001. 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 25.003. 1-22 Sec. 25.002. 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. 25.003. EMPLOYER RETALIATION PROHIBITED. An employer 2-2 may not suspend, demote, or terminate the employment of, or 2-3 otherwise discriminate against, an employee because the employee 2-4 has reported activities within the workplace that constitute a 2-5 violation of law if the employee makes the report: 2-6 (1) in good faith; and 2-7 (2) to: 2-8 (A) an appropriate law enforcement authority; or 2-9 (B) a supervisor, officer, or other appropriate 2-10 person who exercises managerial authority for the employer. 2-11 Sec. 25.004. RELIEF AVAILABLE TO EMPLOYEE. (a) An employee 2-12 whose employment is suspended, demoted, or terminated, or who is 2-13 otherwise discriminated against, in violation of Section 25.003 is 2-14 entitled to sue for: 2-15 (1) injunctive relief; 2-16 (2) actual damages; 2-17 (3) court costs; and 2-18 (4) reasonable attorney's fees. 2-19 (b) In addition to relief under Subsection (a), an employee 2-20 whose employment is suspended, demoted, or terminated, or who is 2-21 discriminated against, in violation of this chapter is entitled to: 2-22 (1) reinstatement to the employee's former position or 2-23 a position that is comparable in terms of compensation, benefits, 2-24 and other conditions of employment; 2-25 (2) compensation for wages lost during the period of 2-26 suspension, demotion, termination, or discrimination; and 2-27 (3) reinstatement of any fringe benefits and seniority 3-1 rights lost because of the suspension, demotion, termination, or 3-2 discrimination. 3-3 Sec. 25.005. BURDEN OF PROOF; PRESUMPTION. An employee who 3-4 sues under this chapter has the burden of proof, except that if the 3-5 suspension, demotion, or termination of, or other discriminatory 3-6 action against, the employee occurs not later than the 90th day 3-7 after the date on which the employee reports a violation of law, 3-8 the suspension, demotion, termination, or other discriminatory 3-9 action is presumed, subject to rebuttal, to be because the employee 3-10 made the report. 3-11 Sec. 25.006. LIMITATION PERIOD. Except as provided by 3-12 Section 25.007, an employee who seeks relief under this chapter 3-13 must sue not later than the 90th day after the date on which the 3-14 alleged violation of this chapter: 3-15 (1) occurred; or 3-16 (2) was discovered by the employee through reasonable 3-17 diligence. 3-18 Sec. 25.007. EXHAUSTION OF GRIEVANCE OR APPEAL PROCEDURES. 3-19 (a) An employee must exhaust the employer's grievance or appeal 3-20 procedures relating to suspension, demotion, termination of 3-21 employment, or discrimination, if any, before suing under this 3-22 chapter. 3-23 (b) The employee must invoke the grievance or appeal 3-24 procedures not later than the 90th day after the date on which the 3-25 alleged violation of this chapter: 3-26 (1) occurred; or 3-27 (2) was discovered by the employee through reasonable 4-1 diligence. 4-2 (c) Time used by the employee in exhausting the grievance or 4-3 appeal procedures is excluded from the period established by 4-4 Section 25.006. 4-5 (d) Notwithstanding Subsection (a), an employee may bring 4-6 suit under this chapter on or after the 31st day after the date on 4-7 which the employee initiates the grievance or appeal if a final 4-8 decision is not rendered before the 31st day after the date of the 4-9 initiation. 4-10 Sec. 25.008. VENUE. An employee may sue under this chapter 4-11 in a district court of the county in which the employee resides. 4-12 Sec. 25.009. CIVIL PENALTY. (a) An employer who suspends, 4-13 demotes, terminates the employment of, or discriminates against an 4-14 employee in violation of this chapter is liable for a civil penalty 4-15 not to exceed $500. 4-16 (b) The attorney general or an appropriate prosecuting 4-17 attorney may sue to collect a civil penalty under this section. 4-18 (c) A civil penalty collected under this section shall be 4-19 deposited in the state treasury. 4-20 Sec. 25.010. NOTICE TO EMPLOYEES. (a) Each employer shall 4-21 inform its employees of their rights under this chapter by posting 4-22 a conspicuous sign in a prominent location in the employer's 4-23 workplace. 4-24 (b) The Texas Workforce Commission by rule shall prescribe 4-25 the design and content of the sign required by this section. The 4-26 commission may combine the contents of the sign required by this 4-27 section with the content of any other sign required to be posted by 5-1 an employer by the state. The commission may assess each employer 5-2 subject to this chapter a reasonable fee to cover the costs 5-3 incurred by the commission in administering this section. 5-4 SECTION 2. This Act takes effect September 1, 2001, and 5-5 applies only to a suspension, demotion, termination, or 5-6 discriminatory action that is taken on or after that date by an 5-7 employer against an employee.