This Just In - Supremes Say You Must Have Your Own Workers Comp Coverage...

THe Supreme Court of Texas overturned an appellate court decision that will have far reaching impact on employers who hire temporary workers in Texas. As we know, in Texas an employer is not forced to purchase workers compensation insurance, they can "opt out" of the system. In this decision, the court was reviewing a case where a temporary staffing company sent an employee to their client company who did NOT have thier own workers compensation coverage. The client company directed the activity of the temporary company. During that direction, the employee was injured. According to the record, the employee sued both the temporary agency and the client company for benefits. The temporary agency did have workers compensation coverage and employer liability.

The Supreme court ruled the client company WAS NOT COVERED by the temporary agency policy.

Here's the quote:

"But even if Interim were contractually obligated to obtain workers’ compensation insurance that named Exel as an insured, or it gratuitously chose to do so, no such policy has been identified or made part of this record. Accordingly, Exel has not established that it is “covered by workers’ compensation insurance coverage” for a “work-related injury sustained by the employee,” in this case, Garza, which is a prerequisite to the application of the exclusive remedy provision in section 408.001(a).[41]"

If I were an employer and did not have workers compensation coverage for my employees, I would be very careful in hiring temporary employees. If you hire temporary workers AND direct their action while at your site, this decision could have a great impact on your operation. This case is not over in terms of whether the client company will be required to pay for the employee injuries. It is over in terms of whether Exel is covered by the temporary agency's workers compensation insurance.

Here's the complete Supreme Court decision:

Jose Garza, Petitioner, v.
Exel Logistics, Inc. and Interim Services Pacific LLC, Respondents

Roofing Contractors, Workers' Compensation Insurance and Profits

I recently published this article in the Insurance Journal.

Roofing Contractors, Workers' Compensation Insurance and Profits...Making the Puzzle Pieces Fit

Dr. Koop - Worker's Comp Can Keep Injuries Lingering

Employers have certainly believed the Workers Comp system keeps employees off work. Most of the time the employer believes it is some type of fraud, though that is rarely the case. Now, a research study in the Journal of the American Medical Association is reporting "financial incentives influence patient outcomes".

This comes as no big surprise to employers who have good employees turn into bad employee after entering the workers comp system.

Read the anlaysis of the study here:Dr. Koop - Worker's Comp Can Keep Injuries Lingering The Journal of the American Medical Association abstract can be seen here

This report and analysis seems to be clear and convincing evidence that employers who have good return to work programs established will benefit greatly. The employees of these companies will benefit as well. The end result is a happy, healthy employee who is ready to return to work. The employer benefits from a faster return to work and lower workers comp expense in the future.

What's not to like about that?

Texas House Passes Workers' Comp Reform Bill

The Texas House of Representatives has passed their version of the Workers Compensation Reform bill, House Bill 7.

A brief review of it is here:Texas House Passes Workers' Comp Reform Bill