| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the enforceability of certain contracts between an |
|
|
employer who does not have workers' compensation coverage and an |
|
|
employee of the employer. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 406.033, Labor Code, is amended by |
|
|
adding Subsection (h) to read as follows: |
|
|
(h) A contract entered into between an employer who does not |
|
|
have workers' compensation coverage and an employee of the employer |
|
|
is unconscionable and unenforceable if the contract: |
|
|
(1) affects a procedural or substantive right of the |
|
|
employee to recover damages for personal injury or death sustained |
|
|
by the employee in the course and scope of the employee's |
|
|
employment; and |
|
|
(2) is entered into before the 10th day after the date |
|
|
the cause of action against the employer arises. |
|
|
SECTION 2. Section 406.033(h), Labor Code, as added by this |
|
|
Act, applies only to a contract entered into on or after the |
|
|
effective date of this Act. A contract entered into before the |
|
|
effective date of this Act is governed by the applicable law in |
|
|
effect immediately before the effective date of this Act, and the |
|
|
former law is continued in effect for that purpose. |
|
|
SECTION 3. This Act takes effect September 1, 2007. |