HBA-TBM C.S.S.B. 624 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.S.B. 624
By: Duncan
Business & Industry
5/6/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Under current law, there are no provisions regarding the use of waivers for
employees of employers who do not subscribe to the workers' compensation
system.  C.S.S.B. 624 provides that any agreement by an employee to waive a
cause of action against an employer prior to or after the employee's injury
or death is void and unenforceable, with certain conditions.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

C.S.S.B. 624 amends the Labor Code to prohibit a cause of action against an
employer who does not have workers' compensation insurance coverage to
recover damages for personal injuries or death sustained by an employee in
the course and scope of the employment from being waived by an employee
prior to the employee's injury or death.  An agreement by an employee to
waive a cause of action or any right prior to the employee's injury or
death is void and unenforceable unless before the execution of the waiver
the employer offered to the employee the opportunity to choose from at
least two coverage plans at least one of which has coverage that meets or
exceeds the coverage and benefits provided by the Texas Workers'
Compensation Act.  Such a waiver is void and unenforceable if the waiver is
a condition of the employee's employment.  The bill prohibits an employer
from discharging or in any other manner discriminating against an employee
who executes a waiver in favor of another coverage plan because the
employee has filed a claim for benefits arising from a workplace injury or
hired an attorney to represent the employee in a claim. The bill provides
remedies for an employee who is discharged or discriminated against.   

The bill prohibits a cause of action from being waived by or on behalf of
an employee after the date of the employee's injury or death unless the
waiver meets certain conditions.  The bill authorizes an employee or a
person acting on behalf of an employee to release or otherwise discharge a
cause of action or a right after the date of the employee's injury or death
only through the settlement of a disputed claim.  
EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.S.B. 624 differs from original by prohibiting a cause of action from
being waived after as well as before the date of an employee's injury or
death.  The substitute also provides exceptions to both provisions, adds
provisions prohibiting the discharge of or the discrimination against an
employee who files a claim, and sets forth remedies for an employee who is
discharged or discriminated against.