1-1 AN ACT 1-2 relating to continued payment of salary by an employer as 1-3 replacement for certain workers' compensation income benefits. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. The heading to Section 408.003, Labor Code, is 1-6 amended to read as follows: 1-7 Sec. 408.003. REIMBURSABLE EMPLOYER PAYMENTS; SALARY 1-8 CONTINUATION; OFFSET AGAINST INCOME BENEFITS; LIMITS. 1-9 SECTION 2. Section 408.003, Labor Code, is amended by adding 1-10 Subsections (f), (g), and (h) to read as follows: 1-11 (f) Salary continuation payments made by an employer for an 1-12 employee's disability resulting from a compensable injury shall be 1-13 considered payment of income benefits for the purpose of 1-14 determining the accrual date of any subsequent income benefits 1-15 under this subtitle. 1-16 (g) If an employer is subject to a contractual obligation 1-17 with an employee or group of employees, such as a collective 1-18 bargaining agreement or a written agreement or policy, under which 1-19 the employer is required to make salary continuation payments, the 1-20 employer is not eligible for reimbursement under this section for 1-21 those payments. 1-22 (h) Payments made as salary continuation or salary 1-23 supplementation do not affect the exclusive remedy provisions of 1-24 Section 408.001. 2-1 SECTION 3. Subchapter F, Chapter 408, Labor Code, is amended 2-2 by adding Section 408.105 to read as follows: 2-3 Sec. 408.105. SALARY CONTINUATION IN LIEU OF TEMPORARY 2-4 INCOME BENEFITS. (a) In lieu of payment of temporary income 2-5 benefits under this subchapter, an employer may continue to pay the 2-6 salary of an employee who sustains a compensable injury under a 2-7 contractual obligation between the employer and employee, such as a 2-8 collective bargaining agreement, written agreement, or policy. 2-9 (b) Salary continuation may include wage supplementation if: 2-10 (1) employer reimbursement is not sought from the 2-11 carrier as provided by Section 408.127; and 2-12 (2) the supplementation does not affect the employee's 2-13 eligibility for any future income benefits. 2-14 SECTION 4. This Act takes effect September 1, 1999, and 2-15 applies only to a claim for workers' compensation benefits based on 2-16 a compensable injury that occurs on or after that date. A claim 2-17 based on a compensable injury that occurs before that date is 2-18 governed by the law in effect on the date that the compensable 2-19 injury occurred, and the former law is continued in effect for that 2-20 purpose. 2-21 SECTION 5. The importance of this legislation and the 2-22 crowded condition of the calendars in both houses create an 2-23 emergency and an imperative public necessity that the 2-24 constitutional rule requiring bills to be read on three several 2-25 days in each house be suspended, and this rule is hereby suspended. _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.B. No. 2842 was passed by the House on May 4, 1999, by a non-record vote; and that the House concurred in Senate amendments to H.B. No. 2842 on May 26, 1999, by a non-record vote. _______________________________ Chief Clerk of the House I certify that H.B. No. 2842 was passed by the Senate, with amendments, on May 24, 1999, by the following vote: Yeas 30, Nays 0. _______________________________ Secretary of the Senate APPROVED: _____________________ Date _____________________ Governor