Texas Senate Bill SB305

Texas 2021 - 87th Regular

Caption

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

Impact

If enacted, SB 305 will significantly impact state labor laws by tightening the regulations surrounding workers' compensation insurance in the construction sector. This legislation mandates that compliance certificates must be presented for both contractors and subcontractors involved in public projects, ensuring that all employees are covered. The enforcement of this bill is likely to increase the overall safety and financial security of workers, while also ensuring that employers maintain adequate insurance coverage.

Summary

Senate Bill 305, introduced by Senator Eckhardt, aims to amend the Texas Labor Code to ensure that all building and construction contractors and subcontractors provide workers' compensation insurance coverage for their employees. The bill outlines specific requirements for contractors who enter into agreements with governmental entities regarding public projects, stipulating that they must certify that they have adequate workers' compensation coverage for their employees, as well as requiring subcontractors to provide similar certifications. This measure seeks to enhance workplace safety and provide protection for workers in the construction industry.

Contention

Notable points of contention surrounding SB 305 include concerns from industry stakeholders regarding the potential financial burden this could place on smaller contractors who may struggle to afford comprehensive workers' compensation insurance. Critics of the bill may argue that it creates additional regulatory hurdles that could disadvantage smaller companies in pursuing public contracts. Proponents, however, emphasize the necessity of protecting workers and ensuring that every employee on construction sites is adequately insured against workplace injuries.