Last Day of Texas Legislative Session Is June 2

Last Day of Texas Legislative Session Is June 2

The 89th Regular Session of the Texas Legislature will adjourn on Monday, June 2. Only a small percentage of the more than 9,000 bills filed will have made it to the finish line by the close of the 140-day session, and while there has been less public acrimony between the two chambers and the state’s leadership than in recent sessions, many legislators will head home frustrated realizing that the legislative process seems better designed to kill bills rather than pass them.

TAN will present its comprehensive report on the session highlights during its monthly organization meeting on Wednesday, June 18, at 1:30 p.m. (CDT). The presentation will include an in-depth look at the top bills the organization was tracking, as well as a general overview of other major legislation that was adopted. For now, here’s the status of several of the bills the organization followed closely:

  • HB 480, which would have required mandatory workers’ compensation coverage for the construction industry, failed to advance.
  • HB 5545/SB 2989, describing nonsubscriber wage replacement benefits as workers’ comp payments for federal tax purposes, died by procedural action.
  • HB 5412, creating a definition of intoxication to determine eligibility for workers’ compensation benefits, failed to get a hearing and died in the committee to which it was referred.

The fate of two bills of particular interest to the business community and nonsubscribers is still undetermined.

SB 30, which seeks to curb “nuclear verdicts” by preventing abusive lawsuit practices by plaintiff lawyers who wrongfully inflate medical damages in personal injury lawsuits, was passed by the Senate. But because the bill was amended in the House, the Senate must concur with the amendments or request a conference committee between the two chambers to resolve the differences.

Another top business priority was SB 39, which seeks to make motor vehicle lawsuits more consistent and uniform by modifying rules of evidence presentation in civil actions, particularly in bifurcated trials involving employer liability. As of this date, the bill has been passed by the Senate but has not yet been voted on in the House of Representatives. Due to impending legislative deadlines, the bill’s passage appears to be at risk.

Additional details on other bills of interest to the organization will be outlined during the June presentation.  

Perhaps the most consequential result from the session was the passage of Senate Bill 2 creating a statewide private school voucher system. The bill earmarks $1 billion over a two-year period for education savings accounts that can be used for private school tuition and school-related expenses. It is expected to dramatically change the dynamics of public education in the state when it is officially launched at the beginning of the 2026-27 school year.

While a few major issues have been resolved, many will be decided as the clock ticks down on the final days. Those issues are:

  • SB 1 (State budget of $337 billion) – Passed both chambers with conference committee report to be presented this week.
  • SB 3 (Banning THC) – Passed. Sent to the governor.
  • SB 4 (Increases homestead exemption) – Passed by the Senate. Amended by the House. Waiting on Senate concurrence or appointment of conference committee.
  • SB 9 (Bail reform) – Passed by the Senate. Amended by the House. Waiting on Senate concurrence or appointment of conference committee.
  • SB 10 (Ten Commandments in school) – Passed by the Senate. Amended by the House. Waiting on Senate concurrence or appointment of conference committee.
  • SB 17 (Limits land ownership by hostile foreign actors) – Conference committee report resolving House and Senate differences filed with each chamber.

With much still to be settled in the final days of the session, make plans to hear the results during TAN’s End-of-Session webinar on June 18. More details on the webinar to be provided.

Independent Contractor Rule Likely to Change

The Trump administration says it will not enforce the Biden-era change to the independent contractor rule under the Fair Labor Standards Act (FLSA) while the Department of Labor (DOL) reconsiders the rule, which is widely assumed will be dramatically changed or replaced when the review is completed.

The Trump administration Department of Labor issued a field assistance bulletin with updated guidance that calls for DOL to rely on a fact sheet issued by DOL in 2008 for determining an employment relationship. The guidance says independent contractors such as gig workers and freelancers are not covered by the FLSA and do not receive protection under the legislation.

According to the fact sheet, workers must undergo an “economic reality test” to prove whether they classify as an employee or independent contractor and whether they qualify for protections under the FLSA. The test uses six factors to determine whether a worker is economically dependent on an employer. These are opportunities for profit or loss depending on managerial skill, investments by the worker and the employer, permanence of the work relationship, nature and degree of control, whether the work performed is integral to the employer’s business, and skill and initiative.

The Biden-era rule is being contested in court by a coalition of trade groups that contend that the rule violates the Administrative Procedures Act and does not factor in costs to employers and workers.

The field assistance bulletin is available here.

The fact sheet is available here.

NCCI: Workers’ Comp Industry Remains Strong

The workers’ compensation industry remains strong, according to the 2024 metrics released by the National Council on Compensation Insurance (NCCI) at its annual meeting in May.

The metrics show workers’ compensation premiums decreased 3% in 2024. Private carriers produced their 11th consecutive year of underwriting profitability with a Calendar Year 2024 combined ratio of 86%, the eighth consecutive year with a combined ratio below 90%.

Other highlights from NCCI’s State of the Line Report and the State of the Line Guide include:

  • Workers’ compensation’s Accident Year 2024 combined ratio is 99%, with prior years continuing to experience downward reserve development.
  • NCCI estimates a redundant industry reserve position of $16 billion.
  • Lost-time claim frequency declined by 5% in 2024, a faster pace than the long-term average decline.
  • Severity grew in 2024, with increases of 6% for medical claim severity and 6% for indemnity claim severity.

The State of the Line Report is available here.

Survey Reveals Top Policy Concerns of Executives

Three out of four executives surveyed (75%) said the Trump administration’s immigration policies are among their top concerns, according to a survey conducted by the employment law firm Littler.

Additionally, 70% of executives said they expect immigration enforcement actions from ICE and DHS will have a significant or moderate impact on their workplaces over the next 12 months. Nearly three out of five (58%) expressed concern that Trump’s immigration policies will create staffing challenges. Companies in manufacturing and hospitality expressed even more worries.

Littler surveyed 349 executives at U.S. firms from late February to mid-March — 60% in-house lawyers, and the rest HR or others in the C-suite. Nearly three-quarters of the executives surveyed are at companies with more than 1,001 workers.

According to Littler, the findings show that topics dominating the headlines — including immigration and inclusion, equity and diversity (IE&D/DEI) — are creating significant challenges for employers both from a workforce management and legal perspective.

With the Trump administration’s focus on immigration and IE&D, these are the areas where respondents most expect policy changes will impact their businesses.

Nearly 85% of employers say that changes to workplace regulations and policies surrounding IE&D will impact their businesses during the first year of the Trump administration, followed by changes in the areas of immigration (75%) and LGBTQ+ protections (58%).

Respondents say they expect less scrutiny in other areas amid the federal government’s shifting priorities. Under a more management-friendly National Labor Relations Board (NLRB), for instance, employers’ level of concern about NLRB enforcement fell considerably, with 56% now anticipating an impact on their businesses over the next year, down from 73% in the 2024 survey. Additionally, fewer than half of respondents expect changes to workplace policy and regulation related to wage and hour/pay practices (43%) and artificial intelligence (AI) use in the workplace (42%) during the first year of the Trump administration.

The survey report is available here.

Executive Order Requires Commercial Truck Drivers Be Proficient in English

President Donald Trump has issued an executive order requiring all commercial truck drivers who cannot speak and read English be taken out of service. The order gives the Federal Motor Carrier Safety Administration (FMCSA) until June 28 to strengthen its enforcement of truck driver English proficiency regulations.

The English proficiency requirement was originally adopted in 2001 but relaxed under the Obama administration, in part to alleviate a shortage of commercial truck drivers. Instead of taking non-English-speaking drivers out of service, the previous enforcement guidelines called for both the driver and the driver’s employer to be cited with a regulatory violation.

The Trump order directs FMCSA to stablish English proficiency tests for all CDL (Commercial Driver’s License) drivers and directs Secretary of Transportation Sean Duffy to review nondomiciled CDLs issued by relevant state agencies to identify unusual patterns or irregularities with respect to nondomiciled CDL issuance. Further, Duffy is directed to take “appropriate actions” to improve the effectiveness of current protocols for verifying the authenticity and validity of both domestic and international commercial driving credentials.

Critics of the Obama-era enforcement guideline argue it created traffic safety hazards because drivers could not understand highway road signs or communicate safety issues with their employer and customers. Meanwhile, FreightWaves, an organization that provides global freight and logistics information, estimates almost 10% of the 3 million CDL drivers in the United States are not proficient in English.

Taking a driver out of service can be a burden for employers who must send a qualified driver to pick up equipment that can no longer be operated by the non-English speaker. Employers may also find it harder to find sufficient drivers who can meet the English proficiency requirement.

The executive order is available here.

How Employers Are Managing Weight Loss Drugs in Health Plans

Incorporating high-cost GLP-1s such as Ozempic, Wegovy and others into an employer’s group health insurance plans presents challenges balancing the cost of the group health plan against the interests of beneficiaries of the treatment.

A recent blog post from insurance brokerage InterWest Insurance Services explains some of the approaches organizations are taking to incorporate GLP-1 coverage for weight loss into their health plans.

InterWest says prescriptions for GLP-1s cost about $1,000 a month and most health plans cover these drugs for treating diabetes and obesity. However, the cost means employers prefer not to cover them for employees who simply want to lose weight.

Here’s what InterWest says some employers are doing to manage costs in those instances:

  • Because patients who stop taking a GLP-1 often regain weight and improvements in their blood pressure, blood sugar levels, and cholesterol disappear, more employers require that patients undergo weight management or lifestyle programs, such as a dedicated exercise regimen and adopting a healthy and sensible diet.
  • Some employers require that patients have a body mass index of 33 or higher (anything over 30 is considered obese) along with one comorbidity such as high blood pressure, chronic obstructive pulmonary disease, diabetes, heart disease, or respiratory disease.
  • Some employers and health plans cap the amount that they spend on a GLP-1 for patients who want to lose weight. Some set an expense limit, while others have a time limit.
  • Some remove high-cost drugs such as Ozempic from the formulary and substitute lower-cost alternatives such as Trulicity.
  • Some cover bariatric surgery, which costs about the same as one year of most GLP-1s but provides better outcomes. Most people who undergo bariatric surgery have a higher success rate of keeping weight off.

The full post is available here.

SHRM Report Examines Jobs at Risk Due to Automation

More than 19 million U.S. jobs — or 12.6% of current U.S. roles — face a high risk or very high risk of near-term displacement due to the spread of AI-powered tools and robotics, according to a new report from the Society of Human Resource Management (SHRM). However, the report also finds 62.8% of U.S. jobs are only negligibly or slightly at risk for AI-related job loss.

The report notes that it is not an attempt to forecast future job losses stemming from automation; rather, it is an assessment of how exposed the current U.S. workforce is to automation displacement risk. It is based on data from the Occupational Information Network and combines those risk assessments with employment-level data from the U.S. Bureau of Labor Statistics’ May 2023 National Occupational Employment and Wage Estimates.

The report finds the share of current employment facing high or very high near-term automation displacement risk varies from a high of 19.9% in business and financial operations to a low of 4.7% in life, physical and social sciences.

In almost all cases, the share of workers facing very high risk is lower than the share facing high risk. The estimated fraction of employment facing very high risk of near-term automation displacement risk is 0.6% or less in seven of the 22 major occupational groups studied.

The report also looks at jobs in the blue collar, white collar, and service classifications. It finds blue-collar workers face the highest risk for displacement of the three classifications. Some 14% of blue-collar jobs face high or very high automation displacement risk, compared to 12.3% of white-collar workers and 12.1% of service workers. However, the share of service workers facing very high displacement risk is 3.4%, compared to 2.7% of blue-collar workers and 1.4% of white-collar workers.

The report is available here.

A Look at How Employees Respond to New Technology in the Workplace

One in seven employees have refused to use new workplace technology, according to a recent survey.

The 2025 Yooz Workplace Tech Resistance report, conducted by third-party survey platform Pollfish, surveyed 500 full-time U.S. professionals across multiple industries to explore the factors driving technology resistance and adoption in the workplace. It found younger workers more eager to adopt new workplace technology than their older colleagues, with 55% of millennials saying they’re “excited and eager” to try new tools, compared to 22% of baby boomers. When a new tool is introduced, virtually 0% of Gen Z employees react with annoyance or resistance from the outset, whereas about 35% of boomers admit they feel cautious, annoyed, or prefer sticking to the old system right away.

About one in four Gen Z workers have refused to use a new tool at work at least once, versus 11% of boomers, with Gen X and millennials falling in between. This suggests tech-savvy employees, especially younger ones, are more attuned to what effective tools should look and feel like, and if a solution doesn’t meet their expectations, they may reject it completely. Older generations may take more time to assess a tool’s value, often opting to work through the challenges before deciding.

In other findings, the survey shows 51% of employees find workplace tech rollouts create internal chaos rather than improving efficiency. Some 40% find AI tools helpful but unreliable, while 16% avoid them altogether.

Slightly more than half (52%) receive only basic training, while 20% get little to no guidance. Nearly 48% say better training would improve adoption. Some 36% of respondents believe adoption would improve if they had input, and 28% say leadership needs to embrace change faster to set the tone for adoption.

Survey results are available here.

Survey Highlights Large Number of Americans Looking for Job Change

More than seven in 10 young Americans are currently looking for a job change, according to a survey of 2,000 employed Americans commissioned by isolved and conducted by Talker Research.

The survey found 73% of Gen Z respondents (13- to 28-year-olds) want to switch jobs or careers, along with 70% of millennials (29- to 44-year-olds) surveyed. That’s compared to 51% of Gen X respondents (45- to 60-year-olds) and 33% of baby boomers (61- to 79-year-olds).

The survey found burnout the most often cited reason by respondents who want a new job, as 52% of respondents say they currently feel burnt out at work. Younger respondents reported burnout at higher levels. Two-thirds of Gen Z (68%) are experiencing burnout, as well as 61% of millennial respondents. For Gen X, this drops to 47%, and only three in 10 boomers reported feeling burnt out.

When asked why they feel burnt out, 33% of respondents cited the repetitive nature of their jobs, with 33% saying, “It feels like I do the same thing day after day.” Almost a quarter (23%) said the expectations for them have increased but the pay hasn’t, and 23% said they don’t feel like their work is appreciated (23%).

Respondents said the top threats to a positive work culture are stress among colleagues (47%) and lack of flexible work environments (40%). They also highlighted negativity (32%) and company-wide burnout (31%). Almost half (46%) said their employer’s commitment to furthering and enhancing their career is simply average. Almost a tenth (8%) said their employer’s commitment is poor.

More information about the survey is available here.

Will Micro-Retirement Become a Normal Thing?

One in 10 American workers plans to take a micro-retirement in 2025, according to a recent survey from sidehustles.com, which identifies a micro-retirement as an extended break from work that averages four months.

The top reasons given by survey respondents include mental health recovery (57%), travel or life experiences (52%), and relief from work stress (47%). Some 67% of respondents say they would rely on savings to fund the time away from work, and 75% want employers to offer structured micro-retirement policies like unpaid sabbaticals or extended paid time off.

The survey included responses from 1,000 American employees. The average age of employees was 40. Generationally, 4% were baby boomers, 25% were Gen X, 55% were millennials, and 17% were Gen Z.

According to the survey, 20% of Americans have previously taken a micro-retirement, including 22% of millennials and 17% of Gen Zers. Nearly three in five Americans (59%) would consider a micro-retirement in the future, including 60% of millennials and 63% of Gen Zers.

More than half the respondents (54%) believe micro-retirement helps prevent burnout and improves well-being, making it the top perceived workplace impact. More than half of millennials (54%) and Gen Zers (57%) agree.

Nearly 40% of respondents say micro-retirement increases workplace flexibility and work-life balance expectations. About one in three millennials (32%) and 37% of Gen Zers believe micro-retirement will become a standard career practice in the future.

More information about the survey is available here.

Surveys Track Mental Health Trends in Workplace

Two recently released surveys show worrisome trends in workplace mental health. One survey finds 58% of workers have considered quitting for mental health-related reasons, while a separate survey indicates 75% of workers find the current global political and economic uncertainty leads to burnout at work. Almost half say life was easier during the COVID-19 pandemic than it is now.

Mental health services provider Headspace surveyed more than 2,000 workers and almost 250 HR executives for its seventh annual Workforce State of Mind report. It found that in addition to the 58% of workers who considered quitting for mental health reasons, 40% have taken a leave of absence for that reason. The survey also found 71% of respondents say they work beyond their usual number of hours at least once a week, and 75% said they’ve had to be available for work even while on vacation.

Meanwhile, a survey from Modern Health shows only 36% of employees believe their employer provides adequate mental health benefits, and 81% of respondents want more mental health benefits from their employer.

Modern Health surveyed 1,000 full-time U.S. employees for its report. Notable findings include:

  • Some 75% report experiencing some form of low mood, largely driven by politics and current events, and 74% say they want mental health resources specifically addressing global political turmoil.
  • Some 71% of employees believe global political tension makes it harder to foster a positive workplace culture, and 74% say political uncertainty can lead to more burnout at work.
  • The survey finds 88% of employees want a workplace culture that encourages employees to use mental health resources, yet only 41% feel that their employer truly values their well-being, and 58% say their employers’ conversations about mental health are insincere.

The Headspace survey is available here.

The Modern Health survey is available here.

Employees and Executives Express Their Opinion on Internal Communications

Employees spend just 66% of their day doing their actual job, according to a new survey. The remaining time is lost to distractions, avoidable meetings, and bad communication. Half of the employees surveyed say they give only the bare minimum at work. The quality of in-house communications appears to get the blame.

The Axios HQ report “2025 State of Internal Comms” shows a disconnect between how leadership perceives internal communications and how employees experience them.

According to the report, which is based on responses from 457 executives and 813 employees, 80% of leaders think internal communications are helpful and relevant, while just 53% of employees agree. Some 80% of leaders think internal communications are clear and engaging; just 50% of employees agree. And 72% of leaders think internal communications are timely and reliable; just 48% of employees agree.

Additionally, 27% of leaders think their staff are entirely aligned with the organization’s business goals. Fewer than one in 10 employees (9%) agree.

Employees consistently say in-house communications affect how they do their job. Some 79% of employees say the quality of communication they get from leaders impacts how well they understand organizational goals. And 72% of employees say how well they understand organizational goals impacts how engaged they are at work.

Despite that, 73% of leaders think that when needed, employees can easily find the goals, strategies and directives that executives have shared with them. That compares with 49% of employees who agree.

The report is available for download here.

State News

WeighwABC 3340
Alabama Lawmakers Weigh Providing Workers’ Compensation to Public Education Employees
House Ways and Means Education committee members are expected to take up a bill providing workers’ compensation insurance to public education employees when they return from break. Click here for full article.

Insurance Journal
Call Center Workers’ Comp Fraud Scheme Targeting Spanish-Speakers Leads to Charges
The California Department of Insurance launched an investigation in 2022 after receiving reports that Spanish-speaking workers were being contacted by a call center operating in Mexico. Click here for full article.

Work Comp Central
Montgomery: Comp Is a Cash Cow, but Insurers Want Higher Rates
The Workers’ Compensation Insurance Rating Bureau voted to ask California’s Insurance Commissioner to increase workers’ comp insurance by 11.2%. Click here for full article.

CT Mirror
CT Legislature Jumps to Avoid 235% Hike in Workers’ Comp Rates
Workers’ compensation legislation intended to spare employers crippling increases in insurance premiums passed the General Assembly on Monday, a step towards rapidly resolving a crisis ignited two months ago by a Connecticut Supreme Court decision that reinterpreted a line in a sweeping reforms law passed in 1993. Click here for full article.

Workerscompensation.com
Could Burned Oil Workers Bypass Louisiana’s Workers’ Comp Exclusive Remedy Rule?
Establishing intentional tort for a work-related injury is a bit like finding oil in the backyard. It’s really unlikely. A case involving two oil refinery workers who were tragically burned on the job shows the type of employer conduct that may or may not allow a worker’s personal injury case to go to trial. Click here for full article.

Insurance Business
Massachusetts Insurance Commissioner Denies Rate Increase Request Workers’ Comp Bureau
Massachusetts Insurance Commissioner Michael Caljouw has denied a 7.1% rate increase request submitted by the Workers’ Compensation Rating and Inspection Bureau of Massachusettsaph. Click here for full article.

Insurance Journal
Massachusetts Denies 7.1% Workers’ Comp Rate Hike After 2024 ‘Excessive’ Cut
Massachusetts Insurance Commissioner Michael Caljouw has rejected an industry proposal to raise workers’ compensation rates by 7.1%. Click here for full article.

NonDoc
‘Top Priority in the Senate’: Tort Reform, Workers’ Compensation Bills Tied to Budget Deal
Behind the scenes of their budgeting process this spring, leaders of the Oklahoma Legislature empowered a pair of influential attorneys to negotiate a grand deal on policy topics that have pitted business groups against trial lawyers for decades. Click here for full article. 

General News

Risk and Insurance
Workers’ Comp Stays Profitable in 2024 Despite Lower Premiums and Rising Claim Severity
The workers’ compensation insurance industry maintained profitability in 2024 with an 86% combined ratio, despite a 3% decrease in net written premium to $41.6 billion, according to NCCI’s annual State of the Line report. Click here for full article.

Business Insurance
Connecticut Businesses Praise Governor’s Approval of Comp Disability Amendment
The Connecticut Business and Industry Association on Wednesday praised Gov. Ned Lamont’s approval of a budget bill that included a reversal. Click here for full article.

CBS News
Police Officer Partied at Music Festival and Ran 5K Races While She Collected $600,000 for Fake Injury, California DA Says
A Southern California police officer was caught partying at the Stagecoach Music Festival while collecting more than $600,000 in workers’ compensation for a head injury that prosecutors allege was faked. Click here for full article.

Insurance Business
What Is Driving the Rise of Mental Health in Workers’ Compensation?
While workplace safety has improved drastically in just the last 100 years, thanks in part to emerging technology and an overall shift toward a more information- and service-based economy, mental health is fast emerging as the new frontier for workers’ compensation. Click here for full article.

Insurance Business
Why Tariffs Are a Hidden Threat to Workers’ Comp Programs
Concerns around tariffs and their impact on supply chains are rising. But volatile trade policy doesn’t just impact material resources, it influences how companies manage their workforce. Click here for full article.

Insurance Journal
Workers’ Comp Premiums Fall 3% in 2024; Combined Ratio Holds at 86: NCCI
Workers’ compensation remained a healthy and profitable line in 2024 but claims severity grew with an increase of 6% for medical claim severity and 6% for indemnity claim severity. Click here for full article. 

NCCI
The State of the Economy and its Impact on Workers Comp
The labor market is at risk near-term (recession) and long-term (labor supply). Click here for full article.