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A BILL TO BE ENTITLED
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AN ACT
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relating to prohibiting certain nondisclosure or non-disparagement |
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agreements by employers; creating a civil cause of action. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. 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 NON-DISPARAGEMENT |
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AGREEMENTS PROHIBITED |
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Sec. 25.001. DEFINITIONS. In this chapter: |
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(1) "Employee" means an individual who performs |
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services for an employer for compensation under an oral or written |
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contract of hire, whether express or implied. |
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(2) "Employer" has the meaning assigned by Section |
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61.001. |
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Sec. 25.002. EXEMPTIONS. This chapter does not prohibit: |
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(1) enforcement of a provision in any agreement that |
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prohibits the disclosure of the amount paid in a settlement |
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agreement; or |
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(2) an agreement that lawfully protects trade secrets, |
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proprietary information, or confidential information not subject |
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to this chapter. |
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Sec. 25.003. PROVISIONS OF CERTAIN AGREEMENTS VOID AND |
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UNENFORCEABLE. Any provision of a nondisclosure, confidentiality, |
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or non-disparagement agreement or any other agreement between an |
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employer and an individual who is an employee or independent |
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contractor is void and unenforceable as against the public policy |
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of this state if the provision prohibits the individual from |
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disclosing or discussing conduct that the individual reasonably |
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believes is a violation of state or federal law, including a |
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violation of law related to: |
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(1) wages; |
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(2) discrimination; |
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(3) harassment; |
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(4) retaliation; or |
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(5) sexual assault. |
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Sec. 25.004. PROHIBITED CONDUCT BY EMPLOYER. An employer |
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may not: |
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(1) discriminate or retaliate against an individual |
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because the individual: |
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(A) discloses or discusses conduct that the |
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individual reasonably believes is a violation of law described by |
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Section 25.003; or |
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(B) refuses to sign an agreement prohibited by |
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this chapter; |
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(2) request or require that an individual sign an |
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agreement prohibited by this chapter; or |
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(3) attempt to enforce a provision of an agreement |
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prohibited by this chapter, whether through a lawsuit, a threat to |
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enforce, or any other attempt to influence an individual to comply |
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with a provision in any agreement that is prohibited by this |
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chapter. |
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Sec. 25.005. CIVIL ACTION. (a) An individual aggrieved by |
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a violation of this chapter may bring a civil action against the |
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employer to enforce rights protected by this chapter. |
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(b) An individual who prevails in a civil action under this |
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section is entitled to recover from the employer: |
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(1) damages in an amount equal to the greater of: |
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(A) actual damages incurred; or |
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(B) $10,000; and |
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(2) reasonable attorney's fees and costs. |
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Sec. 25.006. LIBERAL CONSTRUCTION. This chapter shall be |
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liberally construed to effectuate its purposes. |
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SECTION 2. (a) Section 25.003, Labor Code, as added by this |
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Act, applies to an agreement entered before, on, or after the |
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effective date of this Act. |
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(b) Sections 25.004 and 25.005, Labor Code, as added by this |
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Act, apply only to a cause of action that accrues on or after the |
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effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2025. |