Bill Text: TX HB5425 | 2025-2026 | 89th Legislature | Introduced
Bill Title: Relating to prohibiting certain nondisclosure or non-disparagement agreements by employers; creating a civil cause of action.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2025-04-07 - Referred to s/c on Workforce by Speaker [HB5425 Detail]
Download: Texas-2025-HB5425-Introduced.html
| 89R16176 KKR-D | ||
| By: Morales of Harris | H.B. No. 5425 | |
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| 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. | ||
