Monitoring the Session

SB 2989

bill on disability pay from employers without workers’ comp

Died in committee

Verdict: No flags

No flagsInitial review
Sen. Charles SchwertnerRSenate 5

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to the consideration of wage replacement benefits in the nature of workers' compensation.

Caption from analyzed text · version I.

Summary

Counts as workers’ compensation-style pay, but only for federal taxes.

The bill says that disability pay an employer gives to a worker hurt on the job counts as workers' compensation-style pay when the employer does not carry workers' compensation insurance. That label applies only so the payments can be left out of taxable income for federal income and employment taxes. Injured workers at employers without workers' compensation coverage could get this pay without federal tax, and those employers could skip payroll tax on it, starting September 1, 2025.

Labels

Labels: NEVER GOT A HEARING. Filed Mar 14, 2025 and referred to the Senate Business & Commerce committee. No public hearing. The bill died.

Receipt

The receipt

89R-SB2989 · 2025-03-14

SOLD BY

Sen. Charles SchwertnerRSenate 5

ITEM

relating to the consideration of wage replacement benefits in the nature of workers' compensation.

WHAT IT DOES

Counts as workers’ compensation-style pay, but only for federal taxes.

The bill says that disability pay an employer gives to a worker hurt on the job counts as workers' compensation-style pay when the employer does not carry workers' compensation insurance. That label applies only so the payments can be left out of taxable income for federal income and employment taxes. Injured workers at employers without workers' compensation coverage could get this pay without federal tax, and those employers could skip payroll tax on it, starting September 1, 2025.

CHARGES

[ ] NONE FOUND

TOTAL

No fiscal note in the loaded record.

HISTORY

  1. Received by the Secretary of the Senate
  2. Filed
  3. Read first time
  4. Referred to Business & Commerce
FILED UNDER

No verified beat found.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Charles Schwertner

Donors

Donors report through Texans for Charles Schwertner.

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Jul 1, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Money

Missing data does not establish zero giving. Display amounts are rounded.

Votes

No floor vote loaded for this bill.

Fiscal

No fiscal note in the loaded record.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

Sources

Texas Senate · Filed Mar 14, 2025

04/07/2025 S Referred to Business & Commerce

Texas Legislature Online · Introduced

Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.

Senate committee · Business & Commerce · Final status: Died in committee

Companion

HB 5545 by LaHood (identical)

Subjects

Labor--Wages

Labor--Workers' Compensation

EMPLOYEE BENEFITS & LEAVE

Text

The text as introduced · 180 words

89R19198 TYPED

By: Schwertner
S.B. No. 2989

A BILL TO BE ENTITLED

AN ACT

relating to the consideration of wage replacement benefits in the

nature of workers' compensation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter A, Chapter 406, Labor Code, is

amended by adding Section 406.0025 to read as follows:

Sec. 406.0025. CONSIDERATION OF WAGE REPLACEMENT BENEFITS

IN THE NATURE OF WORKERS' COMPENSATION.

Wage replacement disability benefits paid by an employer that does

not carry workers' compensation insurance to an employee who is

unable to return to work due to an injury in the course and scope of

employment are considered payments made under a statute in the

nature of a workers' compensation statute solely for the purpose of

being excluded from taxable income for federal income and

employment tax purposes.

SECTION 2. The enactment of this Act is a clarification of

existing law and does not imply that existing law may be construed

as inconsistent with the law as amended by this Act.

SECTION 3. This Act takes effect September 1, 2025.