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A BILL TO BE ENTITLED
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AN ACT
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relating to the enforceability of certain contracts between an |
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employer who does not have workers' compensation coverage and an |
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employee of the employer. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 406.033, Labor Code, is amended by |
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adding Subsection (h) to read as follows: |
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(h) A contract entered into between an employer who does not |
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have workers' compensation coverage and an employee of the employer |
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is unconscionable and unenforceable if the contract: |
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(1) affects a procedural or substantive right of the |
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employee to recover damages for personal injury or death sustained |
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by the employee in the course and scope of the employee's |
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employment; and |
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(2) is entered into before the 10th day after the date |
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the cause of action against the employer arises. |
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SECTION 2. Section 406.033(h), Labor Code, as added by this |
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Act, applies only to a contract entered into on or after the |
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effective date of this Act. A contract entered into before the |
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effective date of this Act is governed by the applicable law in |
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effect immediately before the effective date of this Act, and the |
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former law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2009. |