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A BILL TO BE ENTITLED
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AN ACT
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relating to the prohibition of certain required nondisclosure and |
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arbitration agreements. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 21, Labor Code, is amended |
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by adding Section 21.0605 to read as follows: |
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Sec. 21.0605. REQUIRING NONDISCLOSURE OR ARBITRATION |
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AGREEMENT. An employer commits an unlawful employment practice if |
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the employer fails or refuses to hire, discharges, harasses, or in |
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any other manner discriminates against an individual in connection |
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with compensation, terms, conditions, or privileges of employment |
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because the individual refuses to sign an agreement prohibited |
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under Chapter 25. |
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SECTION 2. Subtitle A, Title 2, Labor Code, is amended by |
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adding Chapter 25 to read as follows: |
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CHAPTER 25. CERTAIN NONDISCLOSURE AND ARBITRATION AGREEMENTS |
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PROHIBITED |
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Sec. 25.001. DEFINITIONS. For the purposes of this |
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chapter: |
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(1) "Sexual assault" means conduct described by |
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Section 22.011 or 22.021, Penal Code. |
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(2) "Sexual harassment" means an unwelcome sexual |
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advance, a request for a sexual favor, or any other verbal or |
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physical conduct of a sexual nature if: |
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(A) submission to the advance, request, or |
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conduct is made a term or condition of an individual's employment, |
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either explicitly or implicitly; |
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(B) submission to or rejection of the advance, |
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request, or conduct by an individual is used as the basis for an |
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employment decision; |
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(C) the advance, request, or conduct has the |
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purpose or effect of unreasonably interfering with an individual's |
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work performance; or |
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(D) the advance, request, or conduct has the |
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purpose or effect of creating an intimidating, hostile, or |
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offensive working environment. |
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Sec. 25.002. CERTAIN AGREEMENTS PROHIBITING REPORTING OF |
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SEXUAL ASSAULT OR SEXUAL HARASSMENT VOID AND UNENFORCEABLE. A |
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nondisclosure or confidentiality agreement or other agreement |
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between an employer and an employee is void and unenforceable as |
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against the public policy of this state to the extent the agreement |
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prohibits the employee from notifying, or limits the employee's |
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ability to notify, a local or state law enforcement agency or any |
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state or federal regulatory agency of sexual assault or sexual |
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harassment committed: |
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(1) by an employee of the employer; or |
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(2) at the employee's place of employment. |
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Sec. 25.003. MANDATORY ARBITRATION AGREEMENT COVERING |
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DISPUTE INVOLVING ALLEGATION OF SEXUAL ASSAULT OR SEXUAL HARASSMENT |
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VOID AND UNENFORCEABLE. A mandatory arbitration agreement between |
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an employer and an employee is void and unenforceable as against the |
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public policy of this state to the extent the agreement imposes |
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mandatory arbitration of a dispute involving an allegation of |
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sexual assault or sexual harassment. |
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SECTION 3. (a) The change in law made by this Act by the |
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enactment of Section 21.0605, Labor Code, applies only to an |
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unlawful employment practice that occurs on or after the effective |
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date of this Act. |
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(b) The change in law made by this Act by the enactment of |
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Chapter 25, Labor Code, applies to an agreement entered into |
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before, on, or after the effective date of this Act. |
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SECTION 4. This Act takes effect September 1, 2021. |