Texas Labor Code - Section 406.123. Election To Provide Coverage; Administrative Violation
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§ 406.123. ELECTION TO PROVIDE COVERAGE; ADMINISTRATIVE
VIOLATION. (a) A general contractor and a subcontractor may enter
into a written agreement under which the general contractor
provides workers' compensation insurance coverage to the
subcontractor and the employees of the subcontractor.
(b) If a general contractor has workers' compensation
insurance to protect the general contractor's employees and if, in
the course and scope of the general contractor's business, the
general contractor enters into a contract with a subcontractor who
does not have employees, the general contractor shall be treated as
the employer of the subcontractor for the purposes of this subtitle
and may enter into an agreement for the deduction of premiums paid
in accordance with Subsection (d).
(c) A motor carrier and an owner operator may enter into a
written agreement under which the motor carrier provides workers'
compensation insurance coverage to the owner operator and the
employees of the owner operator.
(d) If a general contractor or a motor carrier elects to
provide coverage under Subsection (a) or (c), then, notwithstanding
Section 415.006, the actual premiums, based on payroll, that are
paid or incurred by the general contractor or motor carrier for the
coverage may be deducted from the contract price or other amount
owed to the subcontractor or owner operator by the general
contractor or motor carrier.
(e) An agreement under this section makes the general
contractor the employer of the subcontractor and the
subcontractor's employees only for purposes of the workers'
compensation laws of this state.
(f) A general contractor shall file a copy of an agreement
entered into under this section with the general contractor's
workers' compensation insurance carrier not later than the 10th day
after the date on which the contract is executed. If the general
contractor is a certified self-insurer, the copy must be filed with
the division.
(g) A general contractor who enters into an agreement with a
subcontractor under this section commits an administrative
violation if the contractor fails to file a copy of the agreement as
required by Subsection (f).
(h) Notwithstanding Subsection (b), a person who performs
work or provides a service for an oil or gas well operator and who is
an independent contractor that has no employees shall be treated in
the same manner as an independent contractor with employees and is
not entitled to coverage under the general contractor's workers'
compensation insurance policy unless the independent contractor
and the general contractor enter into an agreement under this
section.
Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. Amended
by Acts 1997, 75th Leg., ch. 88, § 1, eff. Sept. 1, 1997; Acts
2005, 79th Leg., ch. 265, § 3.038, eff. Sept. 1, 2005.
Section: 406.094 406.095 406.096 406.097 406.098 406.121 406.122 406.123 406.124 406.125 406.126 406.127 406.141 406.142 406.143
Last modified: August 10, 2007
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