Employment laws were not the focus of the 85th legislative session of the Texas Legislature; however, there were a few notable new laws – which will impact employers – that were passed during this session. Each of these laws became effective on September 1, 2017.
Amendments to the Texas Uniform Trade Secrets Act
The legislature amended the Texas Uniform Trade Secrets Act to align it more closely with its federal equivalent, the Defend Trade Secrets Act ("DTSA"), and to codify a 2016 Texas Supreme Court decision addressing when a party to a lawsuit may be excluded from the courtroom when trade secrets are discussed.
Specifically, the legislature amended several of the definitions of the TUTSA, including the definition of "trade secrets," to align the state Act's definition with the DTSA. The amendments also add definitions for the terms "owner," "clear and convincing evidence," and "willful and malicious misappropriation." The amendments also clarify and limit the proper scope of injunctive relief so that a person is not prohibited from using general knowledge, skill, and experience that that person acquired during employment.
In addition, the amendments to the TUTSA provide a balancing test that must be used to determine when a party involved in a trade secrets lawsuit can be denied access to documents or testimony about its competitor's trade secrets. The TUTSA states a presumption that a party is allowed to participate but that the court may exclude a party or limit a party's access to the alleged trade secret of another party if other countervailing interests overcome the presumption. The courts must consider factors such as the value of an owner's alleged trade secret, the degree of competitive harm an owner would suffer from the dissemination of the owner's alleged trade secret to the other party, and the degree to which a party's defense would be impaired by limiting that party's access to the alleged trade secret, among other factors.
Leave for Foster Parents
Section 21.0595 was added to the Texas Labor Code and requires that employers who have a policy allowing leave for parents to care for a sick biological or adopted child also provide such leave for the care of foster children. The statute does not require an employer to provide such leave but requires that any leave that is provided be extended to foster parents. Employers should amend their employee handbooks to make sure that their leave policies are updated to reflect this new law.
Preference for Employment of Veterans
The law allowing private employers in Texas to adopt a policy to give preference in employment decisions regarding hiring, promotion, or retention of a veteran over another qualified applicant or employee was amended so that such employers may now notify the Texas Workforce Commission and the Texas Veterans Commission that they have such a policy so they can be included on the commission's website of employers who give veterans preference.
First Responders Right to File Workers' Compensation Retaliation
Texas Labor Code §451.0025 was amended to waive sovereign immunity for suits for workers' compensation retaliation claims brought by first responders, which includes public safety employees or volunteers whose duties include rapid emergency response, including firefighters, peace officers, and emergency medical services personnel. However, the law specifies that unlike private employer claims, the damages that first responders may be awarded are limited.
Electronic Filing of Wage Claims
House Bill 2443 allows an employee who is not paid wages they are legally owed to file a claim electronically with the Texas Workforce Commission.
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