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1 | 1 | 81R444 KSD-D | |
2 | 2 | By: Leibowitz H.B. No. 34 | |
3 | 3 | ||
4 | 4 | ||
5 | 5 | A BILL TO BE ENTITLED | |
6 | 6 | AN ACT | |
7 | 7 | relating to the enforceability of certain contracts between an | |
8 | 8 | employer who does not have workers' compensation coverage and an | |
9 | 9 | employee of the employer. | |
10 | 10 | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | |
11 | 11 | SECTION 1. Section 406.033, Labor Code, is amended by | |
12 | 12 | adding Subsection (h) to read as follows: | |
13 | 13 | (h) A contract entered into between an employer who does not | |
14 | 14 | have workers' compensation coverage and an employee of the employer | |
15 | 15 | is unconscionable and unenforceable if the contract: | |
16 | 16 | (1) affects a procedural or substantive right of the | |
17 | 17 | employee to recover damages for personal injury or death sustained | |
18 | 18 | by the employee in the course and scope of the employee's | |
19 | 19 | employment; and | |
20 | 20 | (2) is entered into before the 10th day after the date | |
21 | 21 | the cause of action against the employer arises. | |
22 | 22 | SECTION 2. Section 406.033(h), Labor Code, as added by this | |
23 | 23 | Act, applies only to a contract entered into on or after the | |
24 | 24 | effective date of this Act. A contract entered into before the | |
25 | 25 | effective date of this Act is governed by the applicable law in | |
26 | 26 | effect immediately before the effective date of this Act, and the | |
27 | 27 | former law is continued in effect for that purpose. | |
28 | 28 | SECTION 3. This Act takes effect September 1, 2009. |