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