Morales Bill Voids Gag Clauses On Workplace Lawbreaking

The text as introduced · 506 words

89R16176 KKR-D

By: Morales of Harris
H.B. No. 5425

A BILL TO BE ENTITLED

AN ACT

relating to prohibiting certain nondisclosure or non-disparagement

agreements by employers; creating a civil cause of action.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle A, Title 2, Labor Code, is amended by

adding Chapter 25 to read as follows:

CHAPTER 25. CERTAIN NONDISCLOSURE AND NON-DISPARAGEMENT

AGREEMENTS PROHIBITED

Sec. 25.001. DEFINITIONS. In this chapter:

(1) "Employee" means an individual who performs

services for an employer for compensation under an oral or written

contract of hire, whether express or implied.

(2) "Employer" has the meaning assigned by Section

61.001.

Sec. 25.002. EXEMPTIONS. This chapter does not prohibit:

(1) enforcement of a provision in any agreement that

prohibits the disclosure of the amount paid in a settlement

agreement; or

(2) an agreement that lawfully protects trade secrets,

proprietary information, or confidential information not subject

to this chapter.

Sec. 25.003. PROVISIONS OF CERTAIN AGREEMENTS VOID AND

UNENFORCEABLE. Any provision of a nondisclosure, confidentiality,

or non-disparagement agreement or any other agreement between an

employer and an individual who is an employee or independent

contractor is void and unenforceable as against the public policy

of this state if the provision prohibits the individual from

disclosing or discussing conduct that the individual reasonably

believes is a violation of state or federal law, including a

violation of law related to:

(1) wages;

(2) discrimination;

(3) harassment;

(4) retaliation; or

(5) sexual assault.

Sec. 25.004. PROHIBITED CONDUCT BY EMPLOYER. An employer

may not:

(1) discriminate or retaliate against an individual

because the individual:

(A) discloses or discusses conduct that the

individual reasonably believes is a violation of law described by

Section 25.003; or

(B) refuses to sign an agreement prohibited by

this chapter;

(2) request or require that an individual sign an

agreement prohibited by this chapter; or

(3) attempt to enforce a provision of an agreement

prohibited by this chapter, whether through a lawsuit, a threat to

enforce, or any other attempt to influence an individual to comply

with a provision in any agreement that is prohibited by this

chapter.

Sec. 25.005. CIVIL ACTION. (a) An individual aggrieved by

a violation of this chapter may bring a civil action against the

employer to enforce rights protected by this chapter.

(b) An individual who prevails in a civil action under this

section is entitled to recover from the employer:

(1) damages in an amount equal to the greater of:

(A) actual damages incurred; or

(B) $10,000; and

(2) reasonable attorney's fees and costs.

Sec. 25.006. LIBERAL CONSTRUCTION. This chapter shall be

liberally construed to effectuate its purposes.

SECTION 2. (a) Section 25.003, Labor Code, as added by this

Act, applies to an agreement entered before, on, or after the

effective date of this Act.

(b) Sections 25.004 and 25.005, Labor Code, as added by this

Act, apply only to a cause of action that accrues on or after the

effective date of this Act.

SECTION 3. This Act takes effect September 1, 2025.