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New Law Expands School District Liability for Employee Misconduct

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New Law Expands School District Liability for Employee Misconduct

AUSTIN, Texas—Beginning Sept. 1, 2025, the new Chapter 118 of the Texas Civil Practice and Remedies Code introduces a change in school district liability—the first significant waiver of sovereign immunity for Texas public school districts since 1969.

The new law, created with the passage of H.B. 4623 during the 89th Legislature, is designed to ensure students are protected from sexual abuse in public schools and that educators comply with obligations to report abuse, neglect, and educator misconduct.

Under Chapter 118, a public school district found grossly negligent in hiring, supervising, or employing a professional school employee who commits sexual abuse against a student, or fails to report abuse or neglect, is liable for damages up to $500,000 for each claimant plus attorney fees and court costs.

For many years, waivers of governmental immunity for Texas public schools have generally been limited to liability arising out of the use or operation of motor vehicles under the Texas Tort Claims Act and cases involving excessive discipline under the Education Code. The creation of Chapter 118 marks a significant shift in immunity by permitting tort claims when there is sufficient justification, especially in cases involving sexual abuse and professional misconduct.

In response to this new legal exposure, the TASB Risk Management Fund (Fund) will add an endorsement to the Fund’s School Liability Coverage Agreement. The endorsement, also effective Sept. 1, 2025, provides limited coverage for claims arising from Chapter 118. The Fund will notify members with School Liability coverage about the change in the coming weeks.

In a parallel effort to further ensure student safety, S.B. 571 made key changes to reporting requirements for child abuse and misconduct by school employees, service providers, and educators.

Both laws underscore the importance of protecting students and adhering to best practices in hiring and oversight of school personnel.

TASB staff are working on updating and developing new resources in response to these and other changes affecting Texas public schools made during the 89th Legislative Session. Fund members will be notified as resources are added and updated.

Questions? Fund members can reach out to their marketing consultant to learn more about Chapter 118 and the new endorsement to the Fund’s School Liability Coverage Agreement. 

For more information, visit these resources:

Misconduct Compliance Hiring Legislation