Relating to a cost-of-living increase applicable to death benefits paid under the workers' compensation system.
The implementation of HB 243 is expected to positively affect beneficiaries of workers' compensation claims, especially families of employees who have suffered fatal work-related injuries. By indexing the death benefit to the CPI-W, the bill seeks to ensure that these benefits do not lose value over time, addressing some long-standing concerns regarding the adequacy of benefits in light of rising living costs. This legislative change applies only to claims pertaining to injuries occurring from the bill's effective date onward, which is set to be September 1, 2021.
House Bill 243 proposes an increase in the death benefits paid under the workers' compensation system in Texas by adjusting these benefits each calendar year based on inflation. Specifically, the bill amends Section 408.181 of the Labor Code to ensure that the death benefit amount, which is currently equal to 75% of an employee's average weekly wage, will be adjusted annually in line with changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This aligns the death benefits more closely with economic conditions and helps maintain their purchasing power over time.
While the bill is projected to offer necessary adjustments to death benefits for beneficiaries, there may be discussions around the fiscal implications for the state's workers' compensation system. Stakeholders may express concerns regarding the potential burden that indexed adjustments could place on insurance carriers and the broader economic impact. Additionally, there may be deliberations on whether the bill sufficiently addresses the needs of all injured workers or if further reforms are necessary to enhance overall compensation and benefits in the workers' compensation framework.