RETALIATION DEMAND LETTER

Texas Anti-Retaliation and Wrongful Discharge Claims

[ATTORNEY/FIRM LETTERHEAD]

[Firm Name]
[Address Line 1]
[City, Texas ZIP]
Tel: [Phone Number]
Fax: [Fax Number]
[Attorney Email]
[State Bar of Texas Number]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [recipient_email]

[Date]

[Employer Contact Name]
[Title]
[Company Legal Name]
[Company Address]
[City, State ZIP]

Copy to:
[General Counsel]
[EPLI Carrier, if known]

Re: Unlawful Retaliation Against [Client Full Name]
TWC-CRD Charge No.: [XXXXX] (if applicable)
EEOC Charge No.: [XXX-XXXX-XXXXX] (if applicable)
CONFIDENTIAL SETTLEMENT COMMUNICATION PURSUANT TO TEX. R. EVID. 408

Dear [Mr./Ms./Mx. Last Name]:

This firm represents [Client Full Name] ("our client") in connection with claims of unlawful retaliation against [Company Legal Name] ("[Company Short Name]" or "the Company"). Please direct all future communications regarding this matter to our office.

Our client engaged in legally protected activity by [briefly describe protected activity], and [Company Short Name] retaliated by [briefly describe adverse action]. This retaliation violates Texas law and exposes the Company to substantial liability for compensatory damages, punitive damages, and attorney's fees.

We write to demand immediate resolution of this matter and to advise that we are prepared to file suit if a satisfactory response is not received.

I. TEXAS-SPECIFIC LEGAL FRAMEWORK

A. Sabine Pilot Doctrine (Private Sector Whistleblower Protection)

Texas recognizes a narrow common law exception to at-will employment under the Sabine Pilot doctrine.

Key Case Law:

• Sabine Pilot Serv., Inc. v. Hauck, 687 S.W.2d 733 (Tex. 1985) (seminal case establishing doctrine)
• Ed Rachal Found. v. D'Unger, 207 S.W.3d 330 (Tex. 2006) (clarifying scope)
• Safeshred, Inc. v. Martinez, 365 S.W.3d 655 (Tex. 2012) (refining requirements)

Elements of a Sabine Pilot Claim:

Under Sabine Pilot, a plaintiff must establish:
1. The employee was required to commit an illegal act;
2. The illegal act carried criminal penalties (not merely civil);
3. The employee refused to commit the act; and
4. The employee was discharged solely because of the refusal.

Important Limitation: The Sabine Pilot doctrine is narrow. It only protects employees who refuse to commit criminal acts. It does not protect employees who merely report illegal activity. See Ed Rachal Found., 207 S.W.3d at 335.

Statute of Limitations: Two (2) years. Tex. Civ. Prac. & Rem. Code Section 16.003.

B. Texas Commission on Human Rights Act (TCHRA)

The Texas Commission on Human Rights Act, Tex. Labor Code Chapter 21, prohibits discrimination and retaliation in employment.

Anti-Retaliation Provision: Tex. Labor Code Section 21.055 makes it an unlawful employment practice to retaliate or discriminate against a person who:
- Opposes a discriminatory practice;
- Makes or files a charge;
- Files a complaint; or
- Testifies, assists, or participates in any investigation, proceeding, or hearing.

Protected Classes:
- Race
- Color
- Disability
- Religion
- Sex (including pregnancy)
- National origin
- Age (40+)

Administrative Exhaustion: A charge must be filed with the Texas Workforce Commission Civil Rights Division (TWC-CRD) within 180 days of the alleged violation. Tex. Labor Code Section 21.202.

Statute of Limitations: After receiving a Right to Sue letter, the plaintiff has 60 days (or 2 years from filing if no determination) to file suit. Tex. Labor Code Section 21.254.

Damage Caps: Tex. Labor Code Section 21.2585 caps compensatory and punitive damages:
| Number of Employees | Cap on Compensatory + Punitive Damages |
|---------------------|----------------------------------------|
| 15-100 | $50,000 |
| 101-200 | $100,000 |
| 201-500 | $200,000 |
| 500+ | $300,000 |

C. Texas Whistleblower Act (Public Employees Only)

The Texas Whistleblower Act, Tex. Gov't Code Section 554.001 et seq., protects public employees who report violations of law.

Application: This statute applies only to employees of state agencies and local governmental entities, not private employers.

Protected Activity: Reporting in good faith a violation of law by the employing governmental entity or another public employee to an appropriate law enforcement authority.

Statute of Limitations: 90 days from the date of the adverse action.

D. Workers' Compensation Retaliation

Tex. Labor Code Section 451.001 prohibits retaliation against employees who file workers' compensation claims.

Remedies:
- Reinstatement
- Damages for lost wages
- Reasonable attorney's fees

II. NATURE OF THE PROTECTED ACTIVITY

Our client engaged in one or more forms of protected activity that triggered [Company Short Name]'s unlawful retaliation:

A. Type of Protected Activity

[Check all that apply]

Refusal to Commit Criminal Act (Sabine Pilot)
- [ ] Refused to commit an act that carries criminal penalties
- [ ] Refused to participate in criminal fraud
- [ ] Refused to falsify documents in violation of criminal law
- [ ] Refused to violate criminal statutes

Opposition to Discrimination/Harassment (TCHRA)
- [ ] Complained internally about discrimination based on [race / color / disability / religion / sex / national origin / age]
- [ ] Complained internally about harassment or hostile work environment
- [ ] Reported discrimination or harassment to human resources
- [ ] Filed a formal internal complaint or grievance

Participation in Discrimination Proceedings (TCHRA)
- [ ] Filed a charge with TWC-CRD or EEOC
- [ ] Participated in a TWC-CRD investigation
- [ ] Testified or provided information in a discrimination proceeding
- [ ] Served as a witness in a co-worker's discrimination case

Workers' Compensation Activity (Section 451.001)
- [ ] Filed a workers' compensation claim
- [ ] Testified in a workers' compensation proceeding
- [ ] Sought treatment for a work-related injury
- [ ] Hired a lawyer to represent in workers' compensation matter

Other Protected Activity
- [ ] Engaged in concerted activity protected by the NLRA
- [ ] Reported safety violations to OSHA
- [ ] Reported violations under federal whistleblower statutes
- [ ] [Other: describe]

B. Timeline of Protected Activity

C. Detailed Narrative

On [Date], our client [describe the protected activity in detail]:

[Provide comprehensive narrative including:
- What our client observed, learned, or experienced that prompted the protected activity
- The specific concerns raised or actions taken
- To whom the concerns were raised (names, titles)
- The manner of reporting (verbal, written, formal complaint)
- Any response received from management or HR
- Any instructions given to our client regarding the matter
- Any witnesses to the protected activity]

Our client's [complaint / report / testimony / action] was made in good faith and based on a reasonable belief that [the conduct complained of was unlawful / the information reported was accurate / the activity opposed was illegal].

III. THE RETALIATORY CONDUCT

A. Adverse Employment Actions

Following our client's protected activity, [Company Short Name] subjected [him/her/them] to the following retaliatory adverse employment actions:

[Check all applicable actions and provide details]

Termination/Constructive Discharge
- [ ] Our client was terminated on [Date]
- [ ] Our client was forced to resign due to intolerable conditions on [Date]

Demotion/Reassignment
- [ ] Demoted from [Former Position] to [New Position] on [Date]
- [ ] Reassigned to less desirable duties/location/shift on [Date]
- [ ] Stripped of [responsibilities / authority / direct reports] on [Date]

Compensation Reductions
- [ ] Salary reduced from $[Amount] to $[Amount] on [Date]
- [ ] Bonus denied or reduced on [Date]
- [ ] Hours reduced from [X] to [X] per week on [Date]

Performance/Discipline
- [ ] Received negative performance review on [Date] (previously had positive reviews)
- [ ] Placed on performance improvement plan (PIP) on [Date]
- [ ] Received written warning on [Date] for [pretextual reason]
- [ ] Suspended [with/without] pay from [Date] to [Date]

Hostile Treatment/Exclusion
- [ ] Excluded from meetings, communications, or decisions
- [ ] Subjected to increased scrutiny and micromanagement
- [ ] Isolated from coworkers or ostracized
- [ ] Given impossible tasks or set up to fail

Other Adverse Actions
- [ ] Denied promotion to [Position] on [Date]
- [ ] Negative reference provided to prospective employer
- [ ] [Other: describe]

B. Timeline of Retaliation

C. Evidence of Causal Connection

The causal connection between our client's protected activity and the adverse actions is demonstrated by:

1. Temporal Proximity

The adverse actions began just [X days/weeks] after our client's protected activity. Texas courts recognize that close temporal proximity between protected activity and adverse action supports an inference of causation. See Strong v. Univ. Healthcare Sys., L.L.C., 482 F.3d 802 (5th Cir. 2007) (applying Texas law).

2. Knowledge

The decision-makers who took adverse action against our client had knowledge of [his/her/their] protected activity.

3. Pattern of Antagonism

Following the protected activity, our client experienced a sudden shift in treatment from positive to hostile.

4. Pretext

The reasons offered by [Company Short Name] for the adverse actions are pretextual.

IV. LEGAL CLAIMS

A. Sabine Pilot Wrongful Discharge

As established in Sabine Pilot Serv., Inc. v. Hauck, 687 S.W.2d 733 (Tex. 1985), our client is entitled to recover for wrongful discharge because:

[He/She/They] was required to commit an act that carries criminal penalties under [cite specific Texas Penal Code provision or federal criminal statute], refused to commit that act, and was discharged solely because of that refusal.

The criminal law at issue is [cite specific statute].

B. Texas Commission on Human Rights Act - Retaliation

Tex. Labor Code Section 21.055

Our client [opposed discrimination / filed a charge / testified / participated in an investigation] and suffered retaliation as a result.

The protected conduct related to discrimination based on [identify protected class under TCHRA].

C. Workers' Compensation Retaliation

Tex. Labor Code Section 451.001

Our client was discharged or discriminated against for [filing a workers' compensation claim / hiring a lawyer / testifying in a workers' compensation proceeding].

D. Federal Claims (If Applicable)

[Include if federal claims are being asserted alongside Texas claims]

• [ ] Title VII Anti-Retaliation, 42 U.S.C. Section 2000e-3(a)
• [ ] 42 U.S.C. Section 1981 (Race-Based Retaliation)
• [ ] ADA Anti-Retaliation, 42 U.S.C. Section 12203
• [ ] ADEA Anti-Retaliation, 29 U.S.C. Section 623(d)
• [ ] FLSA Anti-Retaliation, 29 U.S.C. Section 215(a)(3)
• [ ] Sarbanes-Oxley Act, 18 U.S.C. Section 1514A
• [ ] Dodd-Frank Act, 15 U.S.C. Section 78u-6

V. DAMAGES

A. Economic Damages

1. Lost Wages (Back Pay)

2. Lost Benefits

3. Front Pay

B. Compensatory Damages

For emotional distress and other non-economic harm:

• [Describe emotional impact]
• [Describe physical manifestations]
• [Describe impact on daily life]

Compensatory damages: $[Amount]

Note on TCHRA Caps: Compensatory and punitive damages under the TCHRA are capped based on employer size (see Section I.B above). Sabine Pilot claims are not subject to these caps.

C. Punitive Damages

For willful, malicious, or egregious conduct:

Punitive damages: $[Amount]

D. Interest

Pre-judgment interest as provided by Texas law.

E. Attorney's Fees and Costs

Texas law provides for recovery of reasonable attorney's fees in TCHRA cases under Tex. Labor Code Section 21.259.

Estimated fees through trial: $[Amount]
Estimated costs: $[Amount]

F. Summary of Damages

VI. SETTLEMENT DEMAND

Based on the foregoing, we demand that [Company Short Name] pay $[Settlement Demand Amount] in full and final settlement of all claims arising from the unlawful retaliation against our client.

Settlement Terms

In addition to the monetary payment, settlement must include:

• [ ] Neutral Reference: [Company Short Name] will provide only dates of employment and final position
• [ ] Personnel File: Expungement of all documents related to the pretextual discipline and termination
• [ ] Non-Disparagement: Mutual non-disparagement provisions
• [ ] Confidentiality: Subject to negotiation
• [ ] Unemployment: [Company Short Name] will not contest unemployment benefits

VII. RESPONSE DEADLINE

Please respond to this demand in writing within fourteen (14) calendar days of receipt, no later than [Response Deadline Date].

Critical Deadlines:
- TWC-CRD 180-day filing deadline: [Date]
- 60-day deadline to file after Right to Sue: [Date] (CRITICAL - SHORT)
- Sabine Pilot (2 years): [Date]
- EEOC filing deadline (if applicable): [Date]

If we do not receive a satisfactory response, we will file suit in [Texas District Court, [County] County] or [United States District Court, Northern/Eastern/Southern/Western District of Texas] asserting:

1. Common law wrongful discharge under Sabine Pilot [if applicable]
2. Retaliation in violation of the Texas Commission on Human Rights Act, Tex. Labor Code Section 21.055 [if applicable]
3. Workers' compensation retaliation, Tex. Labor Code Section 451.001 [if applicable]
4. [Federal claims as applicable]

VIII. DOCUMENT PRESERVATION

This letter constitutes formal notice of litigation. [Company Short Name] must immediately implement a litigation hold to preserve all documents and ESI relevant to our client's employment, the protected activity, and all adverse actions.

Spoliation of evidence may result in sanctions and adverse inferences under Texas law.

IX. CONFIDENTIALITY

This letter is a confidential settlement communication protected by Texas Rule of Evidence 408 and applicable state law.

We are prepared to discuss resolution of this matter at your earliest convenience. Please contact me to arrange a settlement conference.

Sincerely,

[Attorney Name]
[Title]
[Firm Name]

[Attorney Signature Block]

Enclosures:
- [ ] TWC-CRD Charge (if applicable)
- [ ] EEOC Charge (if applicable)
- [ ] Right to Sue Notice (if applicable)
- [ ] Authorization to Represent

cc: [Client Name] (via email)
[File]

TEXAS-SPECIFIC PRACTICE NOTES

Very Narrow Sabine Pilot Doctrine: The Sabine Pilot exception is extremely narrow. It only protects employees who refuse to commit acts carrying criminal penalties. It does NOT protect employees who report illegal activity or refuse to commit acts that are merely civilly unlawful. This is a critical distinction from many other states.

No Private Sector Whistleblower Statute: Texas does not have a comprehensive whistleblower protection statute for private sector employees. The Texas Whistleblower Act applies only to public employees.

Critical 60-Day Deadline: After receiving a Right to Sue letter, plaintiffs have only 60 days to file suit under the TCHRA. This is one of the shortest deadlines in the country and is strictly enforced.

Damage Caps: The TCHRA has damage caps similar to federal Title VII. Consider whether Sabine Pilot or federal claims without caps may be more valuable for high-damage cases.

Strong At-Will Employment Doctrine: Texas strongly adheres to the at-will employment doctrine. Courts are reluctant to expand exceptions.

Federal Claims Critical: Due to limited state law protections, practitioners should carefully evaluate federal whistleblower statutes (SOX, Dodd-Frank, OSHA whistleblower provisions) for additional protection for private sector employees.

Workers' Compensation Retaliation: Texas Labor Code Section 451.001 provides explicit protection against retaliation for filing workers' compensation claims, including protection for hiring a lawyer.

TWC-CRD Dual-Filing: TWC-CRD has a work-sharing agreement with EEOC, allowing dual-filing. File with both agencies to preserve all options.

Conservative Judicial Climate: Texas courts tend to be conservative in employment cases. Consider this when evaluating case value and settlement strategy.

Large State Venue Considerations: Texas is a large state with significant variation among judicial districts. Venue selection can be strategically important.