Relating to the amount of temporary income benefits to which an injured employee is entitled under the workers' compensation system.
This bill has a significant impact on state laws concerning workers' compensation, particularly in the context of how benefits are computed. By increasing the percentage of average weekly wage that constitutes the temporary income benefit, SB901 seeks to alleviate financial burdens on injured workers who find themselves unable to work. Additionally, this legislation emphasizes a more favorable view of employee welfare and safety in the workplace, particularly for those in low-wage positions. The change is set to affect claims for compensable injuries occurring on or after the effective date of September 1, 2015, ensuring that employees' current claims are judged under the new criteria.
SB901, also known as the Workers' Compensation Temporary Income Benefits Act, addresses the amount of temporary income benefits that injured employees are entitled to under the Texas workers' compensation system. Specifically, the bill amends Section 408.103(a) of the Labor Code, allowing for the calculation of temporary income benefits to be set at 70% of the difference between the employee's average weekly wage and their weekly earnings post-injury. Furthermore, for the initial 26 weeks post-injury, employees earning less than $10 per hour will see a benefit rate of 75%. This change aims to provide additional support for lower-income injured workers during their recovery period.
The sentiment surrounding SB901 appears to be favorable among legislators and advocates for injured workers. Many view the bill as a strong step towards enhancing protections for vulnerable employees who may struggle to make ends meet during recovery periods. However, some skepticism was voiced regarding the potential for increased costs for employers due to these higher benefit rates. Overall, the predominant feeling highlighted in discussions was one of optimism about the improvements to the financial safety net provided by the workers' compensation system.
While there was overall support for SB901, there were concerns regarding its fiscal impact on the workers' compensation fund and employers. Some legislators pondered whether the increase in benefit rates might lead to higher premiums or deter businesses from hiring low-wage workers. Additionally, discussions suggested a tension between the need to improve employee benefits and the potential economic implications for businesses. Nonetheless, the bill reflects a concerted effort to improve the financial security of injured employees in Texas.