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HB 5425

Relating to prohibiting certain nondisclosure or non-disparagement agreements by employers; creating a civil cause of action.

89th Legislature (2025) Introduced by Christina Morales

HB 5425 prohibits Texas employers from enforcing nondisclosure and non-disparagement agreements restricting employee speech about wages and workplace conditions, enabling civil lawsuits for violations.

Referred to s/c on Workforce by Speaker
#crimes--againstpersons--general(i0170) #crimes--againstpersons--sexual(i0171) #labor--general(i0500) #labor--managementrelations(i0465)
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Bill Summary · HB 5425

Legislative bill overview

HB 5425 would prohibit Texas employers from enforcing certain nondisclosure and non-disparagement agreements with employees, while creating a civil cause of action allowing employees to sue employers who violate these restrictions. The bill limits employer ability to prevent workers from discussing wages, working conditions, legal violations, or speaking negatively about the company.

Why is this important

Employee confidentiality agreements have traditionally allowed employers to restrict what workers can say about pay practices and workplace conditions, potentially hiding discrimination, safety violations, or wage theft. This bill would shift power dynamics by allowing employees to publicly discuss these issues and seek legal remedies, potentially increasing transparency around workplace practices and labor violations.

Potential points of contention

  • Business competitiveness concerns: Employers argue that unrestricted employee speech about company operations, trade secrets, or internal strategies could harm business competitiveness and client relationships
  • Scope ambiguity: The bill's specific carve-outs and limitations are unclear—what exactly constitutes prohibited disparagement versus legitimate confidentiality protections remains undefined and could create litigation uncertainty
  • Litigation burden: Creating a new civil cause of action may increase lawsuits against employers, particularly small businesses lacking legal resources to defend frivolous claims versus legitimate workplace violations

Compiled from official sources — confirm details with the bill’s official record.

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