SRC-ARR C.S.H.B. 2842 76(R)BILL ANALYSIS


Senate Research CenterC.S.H.B. 2842
76R14887 PB-FBy: Brimer (Armbrister)
Economic Development
5/12/1999
Committee Report (Substituted)


DIGEST 

Currently, Texas law entitles an employee to temporary income benefits that
replace a substantial part of lost wages if the employee has a disability
and has not attained maximum medical improvement. Temporary income benefits
continue until the employee reaches maximum medical improvements. These
benefits are calculated using a statutory formula.  C.S.H.B. 2842 would
set forth requirements for continued payment of salary by an employer as
replacement for certain workers' compensation income benefits.  

PURPOSE

As proposed, C.S.H.B. 2842 sets forth requirements for continued payment of
salary by an employer as replacement for certain workers' compensation
income benefits.  

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends the heading to Section 408.003, Labor Code, as follows:

Sec. 408.003. New heading: REIMBURSABLE EMPLOYER PAYMENTS; SALARY
CONTINUATION; OFFSET AGAINST INCOME BENEFITS; LIMITS.  

SECTION 2. Amends Section 408.003, Labor Code, by adding Subsections (f),
(g), and (h), to require salary continuation payments made by an employer
for an employee's disability resulting from a compensable injury to be
considered payment of income benefits for the purpose of determining the
accrual date of any subsequent income benefits under this subtitle.
Provides that an employer is not eligible for reimbursement under this
section for those payments, if an employer is subject to contractual
obligation with an employee or group of employees, such as a collective
bargaining agreement or a written agreement or policy, under which the
employer is required to make salary continuation payments. Provides that
payments made as salary continuation or salary supplementation do not
affect the exclusive remedy provisions of Section 408.001.  

SECTION 3. Amends Chapter 408F, Labor Code, by adding Section 408.105, as
follows: 

Sec. 408.105. SALARY CONTINUATION IN LIEU OF TEMPORARY INCOME BENEFITS.
Authorizes an employer to continue to pay the salary of an employee who
sustains a compensable injury under a contractual obligation between the
employer and employee, such as a collective bargaining agreement, written
agreement, or policy. Authorizes the salary continuation to include wage
supplements if certain conditions exist.  

SECTION 4. Effective date: September 1, 1999.
                     Makes application of this Act prospective.

SECTION 5. Emergency clause.