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