bill requires workers’ comp for all construction employees

The text as introduced · 420 words

89R125 KKR-F

By: Eckhardt
S.B. No. 338

A BILL TO BE ENTITLED

AN ACT

relating to required provision of workers' compensation insurance

coverage for employees of building and construction contractors and

subcontractors.

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

SECTION 1. The heading to Section 406.096, Labor Code, is

amended to read as follows:

Sec. 406.096. REQUIRED PROVISION OF COVERAGE FOR EMPLOYEES

OF [ CERTAIN ] BUILDING OR CONSTRUCTION CONTRACTORS AND

SUBCONTRACTORS .

SECTION 2. Section 406.096, Labor Code, is amended by

amending Subsections (a), (b), and (c) and adding Subsection (a-1)

to read as follows:

(a) A contractor shall provide workers' compensation

insurance coverage for each employee of the contractor. A

subcontractor shall provide workers' compensation insurance

coverage for each employee of the subcontractor.

(a-1) A governmental entity that enters into a building or

construction contract shall require the contractor to :

(1) certify in writing that the contractor provides

workers' compensation insurance coverage for each employee of the

contractor employed on the public project ; and

(2) if the contractor uses a subcontractor on the

public project, provide a written certificate, submitted by each

subcontractor, that the subcontractor provides workers'

compensation insurance coverage for each employee of the

subcontractor employed on the public project .

(b) Each subcontractor on a [ the ] public project shall

provide the [ such a ] certificate described by Subsection (a-1)(2)

[ relating to coverage of the subcontractor's employees ] to the

general contractor, who shall provide the subcontractor's

certificate to the governmental entity.

(c) A contractor or subcontractor may provide [ who has a

contract that requires ] workers' compensation insurance coverage

[ may provide the coverage ] through a group plan , an

owner-controlled consolidated insurance program created under

Chapter 151, Insurance Code, or another [ other ] method . If the

contractor enters into a contract with a governmental entity for a

public project, the coverage provided by the contractor and, if

applicable, by each subcontractor must be satisfactory to the

governing body of the governmental entity.

SECTION 3. The change in law made by this Act applies only

to a contract for building or construction that is entered into on

or after the effective date of this Act. A contract entered into

before the effective date of this Act is governed by the law in

effect on the date the contract was entered into, and the former law

is continued in effect for that purpose.

SECTION 4. This Act takes effect September 1, 2025.