1-1 By: Brimer (Senate Sponsor - Armbrister) H.B. No. 2842 1-2 (In the Senate - Received from the House May 5, 1999; 1-3 May 6, 1999, read first time and referred to Committee on Economic 1-4 Development; May 14, 1999, reported adversely, with favorable 1-5 Committee Substitute by the following vote: Yeas 7, Nays 0; 1-6 May 14, 1999, sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 2842 By: Armbrister 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to continued payment of salary by an employer as 1-11 replacement for certain workers' compensation income benefits. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. The heading to Section 408.003, Labor Code, is 1-14 amended to read as follows: 1-15 Sec. 408.003. REIMBURSABLE EMPLOYER PAYMENTS; SALARY 1-16 CONTINUATION; OFFSET AGAINST INCOME BENEFITS; LIMITS. 1-17 SECTION 2. Section 408.003, Labor Code, is amended by adding 1-18 Subsections (f), (g), and (h) to read as follows: 1-19 (f) Salary continuation payments made by an employer for an 1-20 employee's disability resulting from a compensable injury shall be 1-21 considered payment of income benefits for the purpose of 1-22 determining the accrual date of any subsequent income benefits 1-23 under this subtitle. 1-24 (g) If an employer is subject to a contractual obligation 1-25 with an employee or group of employees, such as a collective 1-26 bargaining agreement or a written agreement or policy, under which 1-27 the employer is required to make salary continuation payments, the 1-28 employer is not eligible for reimbursement under this section for 1-29 those payments. 1-30 (h) Payments made as salary continuation or salary 1-31 supplementation do not affect the exclusive remedy provisions of 1-32 Section 408.001. 1-33 SECTION 3. Subchapter F, Chapter 408, Labor Code, is amended 1-34 by adding Section 408.105 to read as follows: 1-35 Sec. 408.105. SALARY CONTINUATION IN LIEU OF TEMPORARY 1-36 INCOME BENEFITS. (a) In lieu of payment of temporary income 1-37 benefits under this subchapter, an employer may continue to pay the 1-38 salary of an employee who sustains a compensable injury under a 1-39 contractual obligation between the employer and employee, such as a 1-40 collective bargaining agreement, written agreement, or policy. 1-41 (b) Salary continuation may include wage supplementation if: 1-42 (1) employer reimbursement is not sought from the 1-43 carrier as provided by Section 408.127; and 1-44 (2) the supplementation does not affect the employee's 1-45 eligibility for any future income benefits. 1-46 SECTION 4. This Act takes effect September 1, 1999, and 1-47 applies only to a claim for workers' compensation benefits based on 1-48 a compensable injury that occurs on or after that date. A claim 1-49 based on a compensable injury that occurs before that date is 1-50 governed by the law in effect on the date that the compensable 1-51 injury occurred, and the former law is continued in effect for that 1-52 purpose. 1-53 SECTION 5. The importance of this legislation and the 1-54 crowded condition of the calendars in both houses create an 1-55 emergency and an imperative public necessity that the 1-56 constitutional rule requiring bills to be read on three several 1-57 days in each house be suspended, and this rule is hereby suspended. 1-58 * * * * *