The Texas legislative session is in full swing, and lawmakers are set to debate a series of bills to reshape the state’s workers’ compensation system. A key focus is on S.B. 338 and H.B. 875, which propose making workers’ compensation coverage mandatory for contractors and subcontractors in the construction industry. This legislative push could mark a significant policy shift for Texas, currently the only state in the U.S. where employers are not required to provide workers’ compensation insurance.
Current State of Workers Compensation in Texas
Texas is the only state that does not mandate workers’ compensation coverage for most employers. This unique approach has long been debated among lawmakers, industry stakeholders, and workers’ rights advocates. The introduction of S.B. 338 and H.B. 875 represents a significant step towards increasing protection for workers in the construction sector, one of the most dangerous industries in the country.
If passed, these bills could improve safety measures and hold companies accountable for workplace injuries, providing a stronger safety net for construction workers who face daily risks on the job.
Other Legislative Efforts to Strengthen Worker’s Comp
In addition to focusing on the construction industry, lawmakers have introduced several other bills aimed at expanding workers compensation coverage across Texas:
- H.B. 673: This bill proposes extending workers comp benefits to first responders who have post-traumatic stress disorder (PTSD). First responders like firefighters, EMTs, and police officers often face traumatic experiences, and this bill requires a “preponderance of evidence” to show that PTSD is linked to specific events at work.
- S.B. 220: Aimed at providing additional rights to employees who experience sexual assault in the workplace, this bill would allow those with intellectual or developmental disabilities, or those whose employer was negligent, to sue outside of the typical worker’s comp protections.
- H.B. 1292: This proposal seeks to mandate annual cost-of-living increases for individuals receiving death benefits under workers’ compensation, helping beneficiaries maintain financial stability despite rising inflation.
Why the Construction Industry Needs Reform
The construction industry remains one of the most dangerous sectors for workers, highlighting the need for these legislative changes. Some key statistics underscore the risks construction workers face:
- The construction industry accounts for nearly 21% of all worker fatalities in the private sector.
- Falls are the leading cause of death in construction, responsible for about 33% of all fatalities.
- Non-fatal injuries in construction often lead to significant time away from work, averaging 28 days per incident.
- The total cost of construction injuries in the U.S., including medical expenses and lost productivity, exceeds $13 billion annually.
Balancing Costs and Benefits
Making worker’s compensation mandatory for Texas construction firms could bring both opportunities and challenges. On one hand, the financial costs for businesses—including higher project expenses and potential price adjustments—are a notable concern. However, improved worker safety, reduced liability for businesses, and greater employee satisfaction could ultimately offset these costs. As the debate unfolds, lawmakers will need to balance these financial realities with the need to provide robust protections for those working in one of the most hazardous industries in the state.
The outcome of these legislative discussions will not only shape the future of workers compensation in Texas but could also serve as a model for other states considering similar reforms.