TX HB5425

Renders void and unenforceable any nondisclosure, confidentiality, or non-disparagement agreement provisions that prohibit employees or independent contractors from disclosing conduct they reasonably believe violates state or federal law related to wages, discrimination, harassment, retaliation, or sexual assault

Prohibits employers from discriminating or retaliating against individuals who disclose potential legal violations or refuse to sign prohibited agreements, and bars employers from requesting, requiring, or attempting to enforce such agreements

Preserves employers' ability to enforce settlement amount confidentiality provisions and agreements protecting trade secrets, proprietary information, and other lawful confidential information

Creates a civil cause of action allowing aggrieved individuals to recover the greater of actual damages or $10,000, plus reasonable attorney's fees and costs

Applies retroactively to agreements entered before the effective date of September 1, 2025, though the civil action provisions apply only to causes of action accruing on or after that date