DWC Biennial Report to Legislature Shows Drop in Texas Nonsubscribers

DWC Biennial Report to Legislature Shows Drop in Texas Nonsubscribers

According to the TDI Division of Workers’ Compensation Biennial Report to the 89th Legislature (November 2024), the percentage of Texas employers who are nonsubscribers dropped slightly to 24% in 2024, from 25% in 2022 when the previous biennial report was submitted. The percentage of employees working for nonsubscribers dropped to 13% in 2024, from 17% in 2022. The report found the decline occurred in larger employers, while smaller employers with under 10 employees showed a slight increase in the number of nonsubscribers.

The report also finds the projected accident year combined ratio for workers’ compensation in Texas in 2023 was 94%, meaning that for every dollar an insurance company collected, it paid an estimated 94 cents to cover losses and expenses and kept the remainder as profit. Insurance companies writing workers’ compensation in Texas averaged a 9.9% return on net worth over the last decade, similar to the national average of 9.7%.

The report also makes two recommendations to the Legislature for changes within the state workers’ comp system. One would allow contested case hearings (CCHs) by videoconference if all parties agree. Permitting all parties to appear at CCHs by videoconference would help shorten timelines to resolve disputes, improve injured employees’ access to medical treatment, and allow them to return to work more quickly, the report states.

The second recommendation would remove all references to the Approved Doctors List (ADL) from the Labor Code and make conforming changes. The statute regarding ADL expired on Sept. 1, 2007. However, sections in the Labor Code still refer to the ADL, and the report says there are health care practitioners who believe the old ADL and registration and training are still required to become a treating doctor in the workers’ compensation system.

The report is available here.

Fatal Workplace Injuries Drop in Texas

The number of fatal workplace injuries in Texas dropped 2.4% in 2023 to 564, down from 578 in 2022, according to data from the U.S. Bureau of Labor Statistics. Nationally, the number of fatal workplace injuries dropped 3.7% in 2023 to 5,283, from 5,486 in 2022.

Transportation incidents were the most frequent type of fatal event, both in Texas and nationwide. There were 246 fatalities in the state’s transportation and warehousing sector in 2023, compared to 280 in 2022. Nationally, there were 1,942 occupational fatalities in 2023.

Slips, trips, and falls were the second leading cause of workplace fatalities in Texas in 2023, with 92 such incidents that year, compared to 87 in 2022. Contact incidents were the third leading cause of fatal injury in Texas in 2023 with 86 reported, compared to 72 in 2022.

Workers aged 35 to 44 had the highest number of fatalities in 2023 with 118, followed by workers aged 45 to 54 (110), workers aged 55-64 (109), and workers aged 25-34 (108).

More information is available here and here.

Democrats and a Republican File Mandatory Workers’ Comp Bills Ahead of Texas Session

The Texas Legislature apparently will be asked again to weigh in on efforts to require building and construction contractors and their subcontractors to provide workers’ compensation for their employees.

Separate bills were pre-filed in advance of the Legislature’s 89th session, which begins Jan. 14. Senate Bill 338, sponsored by Democrat Sarah Eckhardt, and House Bill 480, sponsored by Democrat Armando Walle, mandate that contractors and subcontractors provide workers’ comp for every employee. Additionally, subcontractors working on public projects would be required to provide the main contractor with written certificates proving coverage for each of the subcontractor’s employees on the project.

Republican Rep. David Spillar has also pre-filed a bill in the House of Representatives that would require municipalities to ensure contractors have workers’ compensation coverage for projects costing more than 1% of the municipalities’ most recent budget. House Bill 875 would also require contractors to secure a performance bond before starting work on such projects. Municipalities would be prohibited from combining costs from multiple projects when determining whether a project exceeds the budget threshold.

Texas' New Business Court Hits Snag

Texas’ newly formed business court system, created by the state Legislature to streamline complex business disputes, may wind up getting bogged down in a dispute over which cases it can accept.

The dispute involves whether legislators purposefully omitted the word “only” when referring to the timing of cases the business courts can accept. Legislation creating the business courts says the courts can consider civil actions commenced “on or after” the courts opened on Sept. 1, 2024. However, some lawyers argue the law creating the courts doesn’t specifically say it applies to litigation brought “only” on or after the court’s launch date. They argue that because the word “only” is found in other state legislation defining a court’s jurisdiction, lawmakers must have intentionally omitted the word in creating the business courts, opening the door to cases that originated before Sept. 1, 2024.

Bloomberg Law has reported that 16 of the 50 cases filed in the new business courts originated before Sept. 1, 2024. Of the 16, Bloomberg Law says judges have rejected four for being too old to qualify. Three other cases were withdrawn.

The fate of the remaining nine is expected to be considered by a statewide appellate court created as part of the business court system to hear business court appeals.

However, even that prospect has the potential to cause further conflict because the legislation creating the business courts doesn’t authorize an appeal of an order rejecting a case. Language that would have authorized such an appeal was in a failed proposal from two years earlier to create the courts but did not make it into the approved legislation.

Trump Administration Not Expected to Advance Biden-Era OSHA Proposals

The incoming Trump administration is expected to drop the Occupational Safety and Health Administration’s (OSHA) effort to enact regulations protecting workers from excessive heat. It is also expected not to defend a Biden-era rule allowing union representatives to attend OSHA walkaround inspections.

Trump has not specifically addressed either issue, but Republicans in Congress and business groups have criticized both of the Biden-era proposals, and most legal experts say they expect Trump will not do anything to push the proposals ahead.

Trump has also not said whether he will rescind OSHA’s electronic injury and illness filing requirements, something he did during his first administration. The electronic filing was first required in 2016 under the Obama administration before being rescinded in 2019 during the first Trump administration. It was revived in 2023 by Biden.

A blog post from Seyfarth Shaw, an international law firm based in Chicago, says OSHA under the Trump administration is likely to conduct fewer and slower safety inspections than during the Biden years. The blog also says to expect substantially reduced emphasis on whistleblower and anti-retaliation claims.

Meanwhile, among the proposals contained in Project 2025 are planks that call for Congress and the Department of Labor to exempt small-business, first-time, nonwillful violators from fines issued by OSHA, and that OSHA’s focus should be on health and safety inspections of egregious offenders. Trump has been ambiguous about how many Project 2025 recommendations he will pursue.

Biden Administration Proposes End to Program Allowing Disabled Workers to Be Paid Less

The Biden Administration wants to phase out a program that allows employers to pay some workers with disabilities less than the federal minimum wage, currently $7.25 per hour, for the work they perform. But first the proposal must undergo a public comment period and possible approval by the incoming Trump administration.

The Department of Labor in December issued a proposed rule that would gradually eliminate certificates employers can apply for under Section 14(c) of the Fair Labor Standards Act that allow them to pay certain workers with disabilities subminimum wages. The department proposes to discontinue the issuance of new certificates and establish a three-year phase-out period for employers with existing certificates once a final rule becomes effective.

The proposed rule must first go through a public comment period that expires Jan. 17, 2025, just days before President-elect Donald Trump is sworn in as president.

The subminimum wage program was enacted in 1938 as a way to provide jobs for injured veterans. Employers can pay their affected workers either a lower per-hour rate or a per-item rate. The Washington Post reported that as of Nov. 1, 2024, 37,106 workers in 37 states were paid subminimum wages by 710 certificate holders.

The proposed rule would do the following:

  • Cease the department’s issuance of new Section 14(c) certificates starting on the effective date of a final rule.
  • Institute a three-year period beginning on the effective date of a final rule for employers holding existing Section 14(c) certificates to gradually cease paying subminimum wages to workers with disabilities.

Information on how to comment on the proposed rule is available here.

Reports Highlight How Workers Feel About Reporting Unsafe Work Conditions

Almost one in four in ten Gen Z retail workers (38%) say they have witnessed workplace violence against a co-worker, yet almost half would refuse to report seeing workplace violence unless they could do so anonymously, according to a survey from Traliant, an online compliance training company.

Meanwhile, a separate survey by the Loss Prevention Research Council (LPRC) in partnership with Verkada finds more than four in 10 retail workers in the U.S. say they are likely to leave their current job in the next 12 months due to personal safety concerns.

Traliant surveyed more than 500 full-time U.S. retail workers in October to reveal variances in how different generations feel toward reporting unsafe situations. It found 49% of Gen Z retail workers said they would only report a scenario where they feared for their own or a co-worker’s safety if they could do so anonymously, compared to only 19% of Baby Boomers.

According to the survey, only 38% of retail workers feel their employers are extremely supportive in promoting a speak-up culture where employees can report misconduct without fear of retaliation.

The LPRC and Verkada’s State of Retail Safety Report shows worker concerns are widespread. More than one in four retail workers (27%) reported feeling unsafe at work, and 54% experienced customer aggression or harassment. Despite these persistent threats, nearly one in four retail workers (22%) say their workplace has minimal to no security and 62% say that their company hasn’t changed the level of security measures in the past 12 months.

Some 40% say they are likely to leave their current job in the next 12 months due to personal safety concerns.

The Traliant survey is available for download here.

The LPRC and Verkada report is available here.

Survey Shows Who’s Receiving Pay Raises

More than three in five workers (61%) received a pay increase in the 12 months since October 2023, either from earning a pay raise at their current position or getting a new, better-paying job, according to a survey from Bankrate.

That’s down from 64% in 2023 and consistent with 2022 data (61%). However, the share of workers who earned a pay increase by switching to a better-paying job fell to 20% in 2024, from 26% during the same period the previous year. Workers were most likely to earn a pay bump this year by getting a raise at their current job (49%), similar to levels from 2023 and 2022 (48% for each).

Job switchers are earning nearly identical pay increases as the workers who stayed put, suggesting that companies are no longer clamoring for more talent, a Federal Reserve Bank of Atlanta analysis shows.

Men (24%) are more likely than women (16%) to have found a better-paying job in the past 12 months. That’s down from 28% and 23%, respectively, in 2023.

Meanwhile, younger workers were more likely to find a better-paying job in 2024, at:

  • Generation Z (ages 18-27): 32%
  • Millennials (ages 28-43): 26%
  • Gen X (ages 44-59): 15%
  • Baby boomers (ages 60-78): 6%

The survey found high-income, middle-aged workers were most likely to earn pay raises at their current job. More than half of those making $100,000 a year or more (57%) and workers making between $50,000 and $79,999 per year (54%) got a pay raise at their current job. That compares with 50% of those making between $80,000 and $99,999 a year and 42% of those who earn less than $50,000 annually.

Bankrate says the average worker received a 4.6% raise during the period, higher than the 2.6% annual inflation rate during the same 12 months.

The online survey of 2,492 U.S. adults was conducted by YouGov Plc. More information about the survey is available here.

Entry-Level Employees Not Ready for the Job?

Only 48% of employees and 12% of mid-level execs believe entry-level employees are prepared for their roles, according to a recent survey. Other findings include that more than a quarter of vice presidents and directors (27%) would not hire today’s entry-level employees. Neither would 23% of employed adults. One-third of executives (33%) and more than a quarter of employees (26%) said their employers don’t provide adequate training for new employees.

The survey was conducted by General Assembly, which provides technical training including software engineering, data science, and other digital technology-related courses.

Nearly half of executives (49%) and more than a third of employees (37%) pointed to a lack of soft skills such as communication, collaboration and adaptability for why entry-level employees are unprepared.

The survey also highlighted a lack of training resources at many companies, with one-third of executives and more than a quarter of employees saying employers don’t provide sufficient training for new hires. And 58% of those who believe entry-level employees aren’t ready for the workforce also say their companies don’t offer enough training.

The survey also found that training stipends and learning budgets aren’t always used. More than two in five executives said their company doesn’t offer a learning budget or training stipend — and when they do, only 57% of executives say employees use it often.

While most employees (64%) and executives (74%) believe individuals should take charge of their own job readiness, many also think companies (63% of employees, 66% of execs) and educational institutions (53% of employees, 73% of execs) share this responsibility.

More information about the survey is available here.

Texas News

Business Insurance
Texas Comp Bill Would Expand PTSD Eligibility
Texas lawmakers are considering legislation that would expand the state’s post-traumatic stress disorder workers compensation presumption to first responders working at colleges and universities. Click here for full article.

State News

Business Insurance
Transportation Worker Fails to Prove COVID Work-related: Iowa Appeals Court
A transportation worker who worked in an office and had traveled prior to his positive COVID-19 test in 2020 failed to prove he contracted the illness at work and is not eligible for workers compensation benefits for his long COVID symptoms, the Iowa Court of Appeals ruled Wednesday. Click here for full article.

Business Insurance
Michigan Bill Could Change Disability, Mental Injury Eligibility
Lawmakers in Michigan for the second year will consider a comprehensive bill that would make several changes to the state’s workers compensation law, including adding to the definition of personal injury to address preexisting conditions of injured workers and clear red tape for disability payments for those who lose their job. Click here for full article.

Insurance Journal
Can Comp-Exempt Sub Owner Sue Contractor for Work Injury? Miss. Court Says ‘No’
It’s a question that has cropped up in state courts only on rare occasions: If the owner or officer of a subcontractor firm opts out of workers’ compensation coverage for himself, can he then sue the general contractor for negligence when he’s injured on the job? Click here for full article.

NFIB
New York Expands Workers’ Compensation for Work-Related Mental Stress to All Employees Beginning in 2025
Beginning in 2025, New York employees can file for workers’ compensation for specific types of mental injury caused by “extraordinary work-related stress.” Click here for full article.

Insurance Journal
New York Expands Workers’ Compensation For Mental Health to All Workers
New York Governor Kathy Hochul has signed legislation to expand workers’ compensation benefits to people who are facing job-related mental health crise. Click here for full article.

New York Focus
New York City Delays the Most Workers’ Comp Insurance Claims in the State
After his second debilitating injury at work, Derrick Baker decided it was time to retire. Click here for full article.

Insurance Journal
Virginia Approves 12% Loss Cost Decrease for Workers’ Compensation
Virginia has approved a 12.0% loss cost decrease in the workers’ compensation voluntary market along with rate decreases in the assigned risk market, effective April 1, 2025. Click here for full article.

General News

U.S. Department of Labor

US Department of Labor Announces Release of Detailed 2023 Case Data on more than 890k Injuries, Illnesses at over 91k Workplaces

The U.S. Department of Labor today announced the release of comprehensive data collected by its Occupational Safety and Health Administration on more than 890,000 workplace injuries and illnesses at more than 91,000 workplaces in calendar year 2023, including incident level details on the conditions and circumstances of injury and illness events. Click here for full article.

WorkersCompensation.com

Looking Back on 2024

Wow, where did 2024 go? I hope you had a good year and will be able to take some time for yourself over the upcoming holidays. Click here for full article.

WorkersCompensation.com

Did WC Claim Cause Meat Plant to Put Worker’s Job in Grinder?

The steps a company takes to either fuel or put the brakes on an employee’s workers’ compensation retaliation claim tend to repeat themselves from case to case. Click here for full article.

Business Insurance

Workplace Heat-related Illnesses Rise Dramatically at High Temps: Study

Workplace heat-related illnesses increase by at least sevenfold on days when temperatures exceed 90°F compared with days with temperatures between 75°F and 80°F, according to research published Wednesday by the Workers Compensation Research Institute. Click here for full article.

The Hill

House COVID-19 Panel Releases Final Report: 3 Key Takeaways

The House Select Subcommittee on the Coronavirus Pandemic released its final report Monday, laying out numerous conclusions from its review of the federal pandemic response, including what the Republican-controlled panel believes to be the likely origins of the virus. Click here for full article.

Yale School of Medicine

One Size Doesn’t Fit All: Best Time for COVID-19 Booster Depends on Where You Live, Infection History

A one-size-fits-all approach for scheduling COVID-19 booster shots may not be the most effective, according to a new study by researchers at the Yale School of Public Health (YSPH) and University of North Carolina at Charlotte (UNCC). The best time for people to get a booster actually varies based on where they live and their personal infection history. Click here for full article.

MedPageToday

Nursing Homes Fell Behind on Vaccinating Patients for COVID

It seems no one is taking COVID-19 seriously anymore, said Mollee Loveland, a nursing home aide who lives outside Pittsburgh. Click here for full article.

UGA Today

Long COVID-19 is Costing Americans Money

The COVID-19 pandemic panic that characterized the early 2020s may be gone. But the SARS-CoV-2 virus is continuing to wreak havoc on some Americans’ finances, according to a new study from the University of Georgia. Click here for full article.

US Medicine

Psilocybin Therapy Helps Clinicians Process COVID Despair

Psilocybin-assisted psychotherapy resulted in significant reductions in depression among clinicians who provided front-line COVID-19 care in 2020 and 202. Click here for full article.

CIDRAP

Analysis of 25 Studies Shows Reduced Risk of Long COVID After Vaccination

A new meta-analysis of studies involving more than 14 million people published in the Journal of Infection shows that COVID-19 vaccination is associated with a lower risk of developing long COVID, with two doses reducing the odds by 24% and one dose reducing the odds by 15%. Click here for full article.

Medical Xpress

Did We Really Need Hospital Masking During COVID-19? Study Says Yes

Massachusetts General Brigham hospitals-led research has reported a significant increase in hospital-onset respiratory viral infections following the cessation of universal masking and SARS-CoV-2 testing policies. Click here for full article.

Delaware Online

Do I Have a Cold, the Flue, COVID-19 or RSV? Signs and Symptoms of Each This Winter

It’s that time of year again − when a runny nose could mean you’ve simply been outside too long, or it could be a sign that you’re getting sick. Click here for full article.

NPR

Amazon Manipulated Injury Data to Make Warehouses Appear Safer, a Senate Probe Finds

A Senate committee investigation accused the nation’s largest online retailer Amazon of putting workers at risk of injury in the name of speed — while manipulating workplace injury data to portray its warehouses as safer than they truly are. Click here for full article.