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A BILL TO BE ENTITLED
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AN ACT
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relating to the consideration of wage replacement benefits in the |
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nature of workers' compensation. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 406, Labor Code, is |
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amended by adding Section 406.0025 to read as follows: |
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Sec. 406.0025. CONSIDERATION OF WAGE REPLACEMENT BENEFITS |
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IN THE NATURE OF WORKERS' COMPENSATION. |
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Wage replacement disability benefits paid by an employer that does |
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not carry workers' compensation insurance to an employee who is |
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unable to return to work due to an injury in the course and scope of |
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employment are considered payments made under a statute in the |
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nature of a workers' compensation statute solely for the purpose of |
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being excluded from taxable income for federal income and |
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employment tax purposes. |
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SECTION 2. The enactment of this Act is a clarification of |
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existing law and does not imply that existing law may be construed |
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as inconsistent with the law as amended by this Act. |
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SECTION 3. This Act takes effect September 1, 2025. |