Relating to required provision of workers' compensation insurance coverage for employees of building and construction contractors and subcontractors.
The legislation is set to modify existing laws under the Labor Code, specifically focusing on ensuring that coverage is not only provided but properly documented and verified by all parties involved in public construction projects. This change addresses potential gaps in workers' compensation compliance and aims to safeguard workers' rights and entitlements on public contracts, which previously may have been overlooked or inadequately enforced.
SB338 aims to mandate the provision of workers' compensation insurance coverage for employees working under building and construction contractors and subcontractors in the state of Texas. The bill emphasizes that both contractors and subcontractors must secure workers' compensation insurance for each employee tasked with public projects. Notably, a governmental entity entering into a construction contract is required to ensure that the contractor provides written certification proving coverage for their employees, as well as certification from any subcontractors involved in the project.
Overall, SB338 represents a significant step towards enforcing workers' rights within the construction industry, particularly in the realm of public works. With its implementation set for September 1, 2025, the bill's success will likely depend on how well it is integrated into existing regulatory frameworks and the responsiveness of contractors to adapt to its requirements.
Despite the bill's intent to enhance worker protections, there could be points of contention, particularly around the potential increased costs that contractors may face as a result of the mandatory insurance coverage. Critics may argue that this could place an undue financial burden on smaller contractors or subcontractors, potentially impacting their ability to compete for public contracts. The debate may center around balancing the need for worker protection against the economic implications for construction businesses.
Labor Code
Insurance Code