Texas House Bill HB3877

Texas 2009 - 81st Regular

Caption

Relating to requiring contractors in certain state construction contracts to provide health benefits to employees.

Impact

The enactment of HB 3877 would significantly alter the landscape of state construction contracts by placing a financial obligation on contractors to account for the health coverage of their workforce. This measure is likely to enhance health security for employees within the construction industry, which often includes a considerable number of contract laborers. Furthermore, the bill includes audit provisions for compliance, indicating a level of oversight intended to ensure that contractors meet these new requirements. Essentially, this legislation reflects a move towards increasing the responsibility of contractors to safeguard the well-being of their employees.

Summary

House Bill 3877 mandates that contractors engaged in major state construction contracts provide health benefits to their employees. Specifically, the bill defines covered employees as those working on projects valued at $1 million or more, who are at least 18 years old and work a minimum of 30 hours a week. Contractors are required to either provide health insurance equivalent to the state employees' group benefits program or contribute to a health opportunity pool for each hour worked on the project. This policy aims to improve employee welfare and ensure that workers participating in large state contracts have access to essential health benefits.

Contention

While supporters of HB 3877 may argue that requiring health benefits for employees is a necessary step toward protecting vulnerable workers in the construction sector, critics may raise concerns regarding the increased costs that contractors will face. These costs could potentially be passed on to taxpayers or lead to reduced competition among contractors, particularly small businesses that may struggle to accommodate the additional financial burden. The bill captures a broader debate around employer responsibilities and the balance between ensuring worker protections and fostering a competitive business environment.