86R7268 JSC-D
 
  By: Watson S.B. No. 589
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the prohibition of certain required nondisclosure and
  arbitration agreements.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 21, Labor Code, is amended
  by adding Section 21.0605 to read as follows:
         Sec. 21.0605.  REQUIRING NONDISCLOSURE OR ARBITRATION
  AGREEMENT. An employer commits an unlawful employment practice if
  the employer fails or refuses to hire, discharges, harasses, or in
  any other manner discriminates against an individual in connection
  with compensation, terms, conditions, or privileges of employment
  because the individual refuses to sign an agreement prohibited
  under Chapter 25.
         SECTION 2.  Subtitle A, Title 2, Labor Code, is amended by
  adding Chapter 25 to read as follows:
  CHAPTER 25. CERTAIN NONDISCLOSURE AND ARBITRATION AGREEMENTS
  PROHIBITED
         Sec. 25.001.  DEFINITIONS. For the purposes of this
  chapter:
               (1)  "Sexual assault" means conduct described by
  Section 22.011 or 22.021, Penal Code.
               (2)  "Sexual harassment" means an unwelcome sexual
  advance, a request for a sexual favor, or any other verbal or
  physical conduct of a sexual nature if:
                     (A)  submission to the advance, request, or
  conduct is made a term or condition of an individual's employment,
  either explicitly or implicitly;
                     (B)  submission to or rejection of the advance,
  request, or conduct by an individual is used as the basis for an
  employment decision;
                     (C)  the advance, request, or conduct has the
  purpose or effect of unreasonably interfering with an individual's
  work performance; or
                     (D)  the advance, request, or conduct has the
  purpose or effect of creating an intimidating, hostile, or
  offensive working environment.
         Sec. 25.002.  CERTAIN AGREEMENTS PROHIBITING REPORTING OR
  DISCLOSURE OF SEXUAL ASSAULT OR SEXUAL HARASSMENT VOID AND
  UNENFORCEABLE. A nondisclosure or confidentiality agreement or
  other agreement between an employer and an employee is void and
  unenforceable as against the public policy of this state to the
  extent the agreement:
               (1)  prohibits the employee from notifying, or limits
  the employee's ability to notify, a local or state law enforcement
  agency or any state or federal regulatory agency of sexual assault
  or sexual harassment committed by an employee of the employer or at
  the employee's place of employment; or
               (2)  prohibits an employee from disclosing to any
  person, including during any related investigation, prosecution,
  legal proceeding, or dispute resolution, facts surrounding any
  sexual assault or sexual harassment committed by an employee of the
  employer or at the employee's place of employment, including the
  identity of the alleged offender.
         Sec. 25.003.  MANDATORY ARBITRATION AGREEMENT COVERING
  DISPUTE INVOLVING ALLEGATION OF SEXUAL ASSAULT OR SEXUAL HARASSMENT
  VOID AND UNENFORCEABLE. A mandatory arbitration agreement between
  an employer and an employee is void and unenforceable as against the
  public policy of this state to the extent the agreement imposes
  mandatory arbitration of a dispute involving an allegation of
  sexual assault or sexual harassment.
         Sec. 25.004.  CIVIL SETTLEMENT AGREEMENTS.  (a)  This
  section applies to a settlement agreement related to a claim filed
  in a civil action or a complaint filed in an administrative action
  involving sexual assault or sexual harassment committed by an
  employee of the employer or at the employee's place of employment.
         (b)  This chapter does not prohibit a settlement agreement to
  which this section applies that contains a provision that prevents
  the disclosure of factual information related to the claim or
  complaint.
         SECTION 3.  (a)  Section 21.0605, Labor Code, as added by
  this Act, applies only to an unlawful employment practice that
  occurs on or after the effective date of this Act.
         (b)  Sections 25.002 and 25.003, Labor Code, as added by this
  Act, apply to an agreement entered into before, on, or after the
  effective date of this Act.
         SECTION 4.  This Act takes effect September 1, 2019.