Texas Senate Bill SB262

Texas 2015 - 84th Regular

• Filed: 12/19/14

Caption

Relating to requirements for employers who do not obtain workers' compensation insurance coverage under the Texas Workers' Compensation Act; providing an administrative violation.

Impact

The implementation of SB262 would introduce significant changes to employer responsibilities in Texas. By requiring life insurance for employees, the bill addresses potential gaps in protection for workers who are not covered by workers' compensation insurance. This could lead to an increase in the number of employers securing life insurance policies, potentially benefitting employees and their families in case of unfortunate incidents. However, the requirement could also lead to financial strain on smaller employers, who may find it challenging to meet the added insurance costs.

Summary

SB262 aims to amend the Texas Workers' Compensation Act by introducing requirements for employers who choose not to obtain workers' compensation insurance. Specifically, the bill mandates that these non-subscribing employers must secure life insurance coverage for each employee. The minimum coverage must include a death benefit of no less than $200,000, ensuring that employees are covered in the event of a workplace fatality. This legislative move is designed to increase the safety net for workers whose employers opt-out of the traditional workers' compensation system.

Contention

Debates surrounding SB262 may revolve around the implications for employers and the effectiveness of mandated insurance coverage. Proponents argue that the bill provides essential benefits to employees and their families, who might otherwise lack sufficient support following a workplace tragedy. Critics, particularly from business associations, may contend that the financial provisions could disproportionately impact small businesses and deter them from hiring or retaining employees. Ensuring adequate protection for workers while maintaining reasonable burdens on employers could be a central point of contention in the legislative discussions.