Texas House Bill HB776

Texas 2021 - 87th Regular

Caption

Relating to required provision of workers' compensation insurance coverage for employees of building and construction contractors and subcontractors.

Impact

HB 776 is expected to significantly impact state regulations related to construction contracts and workers' rights. By enforcing strict requirements for insurance coverage, the bill seeks to strengthen protections for employees in the construction industry, ensuring that they have access to necessary workers' compensation benefits in case of job-related injuries. This change aims to improve overall workplace safety and provide peace of mind for workers and their families during public projects.

Summary

House Bill 776 proposes modifications to the Labor Code regarding workers' compensation insurance for employees of building and construction contractors and subcontractors. The bill aims to ensure that all contractors and subcontractors involved in public construction projects maintain adequate workers' compensation insurance coverage for their employees. This measure is designed to enhance worker protections and reduce liabilities for governmental entities that enter contracts for these projects. The bill mandates contractors to certify their coverage and requires subcontractors to do the same, providing a written certificate of insurance to their general contractors.

Contention

Despite its protective intentions, HB 776 may face scrutiny and opposition from some contractors who perceive the insurance requirements as an additional regulatory burden that may affect their operations and profitability. The mandates for written certification could complicate contracting processes and impose higher costs on smaller subcontractors, potentially impacting their ability to compete for public contracts. As discussions around this bill progress, stakeholders will likely debate whether the benefits of increased worker protection outweigh the potential increased costs and administrative challenges for contractors.