Texas Supreme Court Clarifies Liability Standards for Independent Contractor Workplace Injuries

Texas Supreme Court Clarifies Liability Standards for Independent Contractor Workplace Injuries

On June 26th, the Texas Supreme Court issued an important opinion in JMI Contractors, LLC v. Medellin that reinforces longstanding protections for property owners and general contractors when independent contractors are injured by open and obvious workplace hazards.

The case involved an experienced independent contractor who fell approximately 30 feet from an unprotected roof while performing roofing work. A jury awarded the worker more than $4.3 million in compensatory and exemplary damages after finding the general contractor liable for both negligent activity and premises liability. The court of appeals affirmed that judgment.

The Court unanimously reversed those decisions and rendered judgment in favor of the general contractor.

The Court made several significant holdings:

  • The claim was one for premises liability—not negligent activity. The Court held that the worker’s injury resulted from an allegedly unsafe condition (an unguarded roof edge), rather than from any contemporaneous negligent conduct by the general contractor. Plaintiffs cannot simply recharacterize a premises liability claim as ordinary negligence to avoid the legal standards that apply to premises cases.
  • Open and obvious hazards generally do not create liability. The Court reaffirmed that property owners and general contractors ordinarily have no duty to protect against dangers that are open and obvious, such as the risk of falling from an unprotected roof.
  • Independent contractors cannot rely on the “necessary-use” exception. In what may be the opinion’s most significant holding, the Court expressly ruled that independent contractors may not invoke the common-law necessary-use exception that sometimes allows recovery despite an open and obvious hazard. The Court reasoned that independent contractors are hired for their expertise, are expected to evaluate jobsite risks, determine appropriate safety measures, bring necessary equipment, and decline work they believe cannot be performed safely.

This decision provides important clarification for Texas employers, property owners, and general contractors who work with independent contractors. The ruling strengthens the distinction between negligent activity and premises liability claims and narrows potential liability arising from open and obvious workplace hazards.

For employers, the opinion underscores the importance of:

  • Clearly defining contractor relationships and responsibilities.
  • Maintaining appropriate contractual allocation of safety responsibilities.
  • Documenting the independent contractor’s control over the means and methods of performing the work.
  • Continuing to maintain safe worksites while recognizing that experienced independent contractors are expected to evaluate and manage obvious jobsite risks within their scope of work.

The decision is likely to become one of the leading Texas cases addressing premises liability and workplace injuries involving independent contractors and will almost certainly be cited frequently in future litigation involving construction and other high-risk worksites.

Third-Party Litigation Funding: A Growing Concern in Workplace Injury Litigation

Third-party litigation funding, or TPLF, is a growing practice in which outside investors provide money to support lawsuits in exchange for a share of any settlement or judgment. While supporters often describe litigation funding as a way to expand access to the courts, the practice raises serious questions when private investors have a financial stake in the outcome of civil litigation.

Litigation funding has already become common in mass tort and other high-dollar civil cases. According to reports cited by Texans for Lawsuit Reform, nearly 70% of U.S. litigation-funding capital is now directed toward mass-tort portfolios. That trend should concern Texas employers, particularly as similar financing models begin appearing in workplace injury litigation.

For injured workers, the danger is that funding arrangements may reduce the amount they ultimately recover. A worker who accepts money while a lawsuit is pending may later be required to repay the funder from any settlement or award, often on terms that are not transparent. In some cases, the financial return to the funder can become a major factor in how a case is pursued or resolved.  Although plaintiff attorneys are ethically bound to act in the best interests of their clients, any third-party funder is not bound by similar ethical rules. 

For employers and the civil justice system, litigation funding can change the incentives around lawsuits. Outside capital may allow plaintiffs’ firms to pursue more claims, prolong litigation, resist reasonable settlements, or aggregate cases into larger portfolios designed to maximize investor returns. That can increase defense costs, raise settlement demands, and put additional pressure on businesses trying to resolve legitimate workplace injury claims fairly and efficiently.

The most troubling aspect of TPLF is the lack of transparency. In many cases, defendants, judges, and even plaintiffs may not know whether an outside funder is involved or whether that funder has influence over litigation strategy or settlement decisions. The U.S. Chamber Institute for Legal Reform has warned that undisclosed litigation funding can allow outside investors to affect case decisions while remaining hidden from the court.

Policymakers across the country are beginning to respond. Several states, including Kansas, Montana, Oklahoma, Georgia, Colorado, and Arizona, have recently enacted reforms requiring greater transparency in litigation funding arrangements or limiting the ability of outside investors to influence litigation decisions. Federal proposals have also been introduced to require greater transparency in civil cases and to address concerns about foreign-funded litigation.

As TAN prepares for the 2027 legislative session, it will work to encourage lawmakers to consider additional safeguards, which may include, at a minimum, greater transparency regarding funding sources. Injured workers, employers, courts, and policymakers should know when a lawsuit is being financed by an outside investor whose primary interest is not justice, workplace safety, or fair compensation, but return on investment.

Sources for this article include Texans for Lawsuit Reform, the U.S. Chamber of Commerce Institute for Legal Reform, Bloomberg Law, and RAND Corporation research on third-party litigation funding.

June UT Texas Politics Project Poll: A Competitive U.S. Senate Race in Texas, Continuing Economic Concerns, Data Center Backlash

The June 2026 University of Texas/Texas Politics Project Poll reveals a highly competitive political environment in Texas, with economic concerns dominating voter attitudes and shaping perceptions of elected officials. The poll surveyed 1,200 registered voters statewide.

  1. U.S. Senate Race Is Essentially Tied

The marquee statewide contest is a dead heat. Republican Attorney General Ken Paxton leads Democrat James Talarico by just 1 percentage point (43%-42%), well within the margin of error. Republicans have largely unified behind Paxton following his primary victory, while Talarico enjoys strong Democratic support and a significant advantage among independents.

  1. Republicans Hold Narrow Advantages in Other Statewide Races

While the Senate race is highly competitive, Republicans maintain modest leads in other statewide contests:

  • Governor: Greg Abbott leads Gina Hinojosa, 47%-40%
  • Lieutenant Governor: Dan Patrick leads Vikki Goodwin, 43%-36%
  • Attorney General: Mayes Middleton leads Nathan Johnson, 41%-36%
  • Generic ballots favor Republicans by about 6 points for both Congress and the Texas Legislature.
  1. Economic Anxiety Remains the Dominant Issue

Voters continue to express deep concern about inflation and cost-of-living pressures:

  • 54% say the national economy is worse than a year ago.
  • 39% say their personal financial situation has worsened.
  • The top concerns are healthcare costs, food prices, energy costs, and housing affordability.
  • Inflation and economic issues rank as the most important problems facing both Texas and the nation.
  1. Trump’s Ratings Remain Underwater

President Donald Trump’s approval rating in Texas stands at 43% approve / 51% disapprove.

  • Border security remains his strongest issue area.
  • Voters give him poor marks on the economy, inflation, healthcare, and government spending.
  • Independents are particularly negative, with only 12% approving of his performance.
  1. Abbott Performs Better Than Trump but Faces Economic Vulnerabilities

Governor Abbott’s overall approval rating is evenly split at 45% approve / 45% disapprove.

  • His strongest ratings are on border security, immigration, and public safety.
  • His weakest ratings involve inflation, housing, healthcare, and property taxes, areas Democrats are expected to target in the campaign.
  1. Texans Are Skeptical of AI and Data Centers

A major emerging issue is public concern over artificial intelligence and data center development:

  • 49% believe AI will negatively affect the economy, compared to 29% who expect positive effects.
  • 56% oppose construction of data centers in their communities, while only 29% support it.
  • Opposition is strongest in rural and suburban communities and among older voters.
  1. Abortion Restrictions Remain Out of Step with Many Voters

Pluralities or majorities favor easing Texas abortion restrictions:

  • 43% want abortion laws to be less strict.
  • A majority support allowing Texas women to receive abortion pills prescribed by doctors in states where abortion remains legal.
  1. Political Polarization Remains Intense

Partisans hold overwhelmingly negative views of the opposing party. Independents generally view both parties unfavorably, though they currently lean Democratic in several statewide races. Texans are nearly split on whether elected officials should prioritize compromise (52%) or stand firmly on principle (48%).

Bottom Line

The poll suggests that Texas remains competitive at the top of the ballot, particularly in the U.S. Senate race. Economic dissatisfaction is the dominant force shaping voter attitudes, impacting both President Trump and Governor Abbott on pocketbook issues. Emerging concerns around AI, data centers, and abortion access also reveal important shifts in public opinion that could influence the 2026 campaign environment.

Here is a link to the full poll and cross tabs.

Source: James Henson and Joshua Blank at the Texas Politics Project at the University of Texas at Austin www.texaspolitics.utexas.edu.

Study Highlights Causes of Increased Workers' Comp Medical Costs

Workers’ compensation medical costs are rising as treatment becomes more intensive, access to scheduled care slows, and utilization within existing claims increases, according to Enlyte’s 2026 Envision Trends Report.

The report found that the average time to first treatment climbed to 16.1 days in 2025, up from 9.2 days in 2022, while average treatment duration rose to 62.4 days from 59.2 days over the same period. Enlyte said employers and insurers should focus on earlier risk identification, supported by AI-driven analytics, integrated pharmacy oversight, and proactive clinical intervention, to help protect claim outcomes.

The report highlights several issues that Enlyte says are likely to shape the property and casualty landscape in the months ahead, including the following:

Severity drivers in workers’ compensation: The report says the reason medical costs in workers’ compensation are being pushed higher is less about the number of claims and more about increasingly intensive treatment, delays in access to scheduled care, and greater utilization within existing cases.

Early risk detection: Enlyte says earlier risk identification, AI-based analytics, integrated pharmacy oversight, and proactive clinical intervention can help employers and claims teams keep routine workers’ compensation claims from developing into lengthy, high-cost cases.

Access to care: Changes in provider networks, evolving care-delivery models, and wider variation in access to treatment are reshaping workers’ compensation outcomes, making consistency of care an increasingly important factor in claim performance and recovery.

The report is available here.

DOL Issues Requirement on English Proficiency for Commercial Vehicle Drivers

The Department of Labor (DOL) will require employers hiring foreign workers as commercial motor vehicle drivers to specify English-language proficiency (ELP) in job orders and applications. Companies that fail to include the ELP requirement will receive a Notice of Deficiency, and the agency will also pause processing of the labor certification application until the employer corrects the filing.

The DOL’s Office of Foreign Labor Certification issued new guidance in May to make clear that job orders and applications for temporary or permanent labor certification must include an ELP standard that aligns with existing federal requirements.

Labor officials said the change is intended to protect commercial drivers and the broader motoring public, while also advancing executive orders on trucking regulations and the designation of English as the official language of the United States.

Federal regulations already bar individuals from operating commercial motor vehicles unless they can read and speak English well enough to understand traffic signs, communicate with the public, respond to officials, and complete required records, according to the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration. While that agency is chiefly responsible for enforcement, the Labor Department said its Office of Foreign Labor Certification also reviews employer filings to ensure required skills, qualifications and certifications are listed for jobs involving commercial driving.

New Model Giving Employees Specific Allotment for Health Benefits Gaining Popularity

Individual Coverage Health Reimbursement Arrangements (ICHRA) are gaining popularity as more employers move to the relatively new way of providing health insurance coverage for employees.

ICHRAs were first authorized in 2020 and allow employers to set a specific monthly dollar amount for employee benefits. Employees then are free to shop around for their own coverage and file for reimbursement from their employer.

A new report from SureCo says 2026 marked a turning point as the model moved further into the mainstream. The company’s 2026 State of ICHRA Report, based on three years of survey data from 1,500 HR professionals, employees and benefits consultants, says 56% of insurance benefits brokers are now actively recommending or implementing ICHRA, the first time a majority has done so. According to the survey, the share of brokers who said they had moved at least one client to ICHRA rose to 37% in 2026, from 15% in 2024.

More than 91% of employers who adopted the model over the past three years said it was the right decision, while brokers reported average client savings of about 15.5% after the switch.

The SureCo survey attributes the increased acceptance of ICHRAs to rising premiums in the broader employer-sponsored insurance market. It says family premiums for employer-sponsored coverage reached an average of $26,993 in 2026, up 26% over five years and faster than both inflation and wage growth. Nearly 90% of employers surveyed said they faced a rate increase this year, and one-third reported double-digit hikes. More than half (52%) of senior benefits decision-makers said medical costs were a major source of concern, while 94% said they had explored other ways to contain spending.

More information about the survey is available here.

Survey Reports Job Satisfaction at Record High

Job satisfaction among U.S. workers reached a record high in 2026, according to a new survey from The Conference Board, although women, lower-income workers, and workers uncomfortable with AI were more likely to report lower satisfaction.

The survey found 69% of respondents are satisfied with their jobs overall, the highest level since the organization began tracking the metric in 1987 and a slight increase from 68.3% in 2025.

Other key findings in the survey include:

  • Satisfaction with individual aspects of work averaged 59%, suggesting workers may be masking frustrations over pay, benefits and opportunities for advancement.
  • Women reported lower satisfaction than men across categories in the survey, except for work-life balance, where women expressed higher satisfaction.
  • The biggest gender divides emerged around wages (7.2 percentage points), health plans (7 points), pension and retirement benefits (6.3 points), and promotion policy (6.2 points).
  • Nearly four in 10 workers (39.3%) said advanced AI tools had improved job satisfaction, and those who said the technology increased their confidence in future career prospects also reported stronger engagement, a greater sense of belonging, better mental health, and a higher likelihood of staying. Some 6.7% of workers said AI had reduced their job satisfaction.

Overall job satisfaction ranged from 45.3% among workers in households earning less than $25,000 to 76% among those in households earning $150,000 or more. Workers in households earning under $50,000 also reported the lowest levels of engagement, belonging, and intent to stay of any income group.

Information for downloading the report is available here.

Survey Shows Increase in Financial Stress Affecting Mental Health of Workers

Financial stress among U.S. workers is increasingly affecting mental health, medical decisions, and workplace engagement, according to Prudential’s 2026 Benefits & Beyond study.

The report found that 68% of employees experienced at least some financial stress in the past 12 months, while 28% described their stress as significant or overwhelming. Researchers said the strain is also contributing to emotional pressure, as 45% of employees reported increased mental stress over the past year because of financial concerns. That number is higher (50%) for Gen Z workers.

The report attributes rising medical costs as a major factor in that stress. Seven in 10 employees (71%) said their medical costs increased by at least 5% over the past year, and 22% reported increases of 15% or more.

The study also pointed to a gap between employer confidence and employee sentiment. While 75% of employers said they believe they are doing enough to help workers manage medical costs, only 46% of employees said they feel similarly supported. Prudential said the findings suggest many organizations may be offering benefits that employees either do not fully understand or do not view as meeting their immediate needs.

Just 13% of employees said they turn to employer resources for help, underscoring what the report describes as a need for a more holistic approach to financial, medical and mental health support. The research was based on national online surveys conducted in January 2026 with 3,096 full-time U.S. employees and 760 employers.

The report is available here.

Employees Respond Favorably to Employers That Prioritize Mental Health

Nearly three in four full-time employees say it is appropriate to discuss mental health at work, yet 48% of those surveyed worry they will be judged for doing so, according to a recent survey.

The survey from the National Alliance on Mental Illness and Ipsos finds the share of employees feeling “very stressed” nearly doubled since 2024, and more than half report feeling burned out on the job.

According to the survey, 74% of employees said it is appropriate to discuss mental health at work, and 77% said they would feel comfortable if a co-worker approached them about the issue. However, just 61% said they would feel comfortable talking about their own mental health at work, with comfort dropping to 39% when the conversation involved human resources and 30% when it involved senior leadership.

Among employees who said they were uncomfortable sharing about their mental health, 41% cited stigma, 39% said others do not talk about mental health at work, 33% said they did not want to appear weak, and 23% said they feared retaliation.

The survey also found that mental health training was closely associated with more positive workplace experiences. Employees at companies that offered such training were more likely to say they felt supported and less likely to say they feared stigma than employees at companies without training.

Among employees at companies that offered mental health training, 86% said they feel their manager cares about them, compared with 70% at companies without training. Sixty-nine percent said their company prioritizes mental health, compared with 40% of employees at companies that do not offer training, and 58% said they believe C-suite leadership cares about them, compared with 43% at companies that do not offer training.

More information about the survey is available here.

Report Highlights Pros and Cons of Flexible Hours

Workers with flexible schedules report stronger focus, creativity and motivation than employees working traditional 9-to-5 hours, according to a recent survey by Clarify Capital. The survey, which polled 966 workers and managers, also found that employees with more flexible arrangements were more likely to rate their mental health positively.

Among managers surveyed, 57% said their companies had adopted flexible daily schedules within the past five years, while 31% said their organizations had maintained traditional working hours. Forty-two percent of managers said revenue had increased after flexible work options were introduced, while 47% said they had seen no noticeable effect. Another 40% reported that offering reduced hours or flexible schedules had created no major operational challenges.

Among employees working traditional weekday schedules, 58% said they worked exactly 40 hours per week. That share fell to 30% among four-day workers, 24% among those with flexible daily hours, and just 2% among employees with reduced weekly hours. At the same time, 25% of flexible workers said they often or always felt pressure to work longer hours, compared with 14% of traditional workers.

Two out of three workers with flexible arrangements (67%) described their mental health as good or very good, compared with 59% of those on standard schedules.

Managers cited employee morale as the most common benefit of flexible work, with 78% identifying it as a positive outcome. Specifically, 66% of managers reported improvements in overall business performance, 65% said flexible work helped with retention, and 62% said it made it easier to attract new talent.

More survey results are available here.

Why Some Workers Don't Use Their PTO

Many U.S. workers do not use their full allotment of paid days off (PTO) from work, which a new survey says contributes to the burnout and job stress that remain widespread.

The survey from Clarify Capital of more than 1,000 U.S. employees found employees receive an average of 18 paid vacation days a year but use only 12.

Workers who reported burnout appeared vulnerable to skipping rest. The survey found that burned-out employees were more than twice as likely as their non-burned-out peers to postpone or cancel a vacation because of work pressures, 19% compared with 8%. They were also more likely to worry about falling behind and more likely to say they are considering leaving their jobs.

The data suggested that fear of returning to a heavier workload plays a major role in employees’ decisions. Forty-five percent of workers said their biggest concern about taking time off is coming back to chaos, and 44% said they fear falling behind. Those worries were even more pronounced among workers already experiencing burnout.

Nearly half of respondents said they hold onto their days off as a precaution, with 44% saying they are saving time off “just in case.” Financial concerns and lack of coverage at work were also among the top reasons workers said they do not take all of their available vacation time.

About 15% of respondents said guilt about being away from work keeps them from taking time off. While 49% said their workplace openly encourages PTO, another 41% described it as something that is accepted but not actively encouraged or discussed.

Most respondents said taking PTO did not lead to negative consequences, though 18% reported hearing passive-aggressive comments and 13% said they were excluded from projects or decisions.

More information about the survey results is available here.

State News

NBC Sports
NFLPA “Strongly Opposes” Proposed Changes to California Workers’ Compensation Laws
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Carrier Management
California UPS Mechanic Admits to Workers Comp Fraud
A former UPS employee was sentenced to 90 days in jail, two years’ probation, and ordered to pay $50,000 restitution to Liberty Mutual Insurance after submitting a fraudulent workers compensation claim, according to a press release issued last week by the Sacramento County District Attorney’s Office. Click here for full article.

Conduit Street
Beyond the Original Grand Bargain: Maryland’s Evolving Workers’ Comp System
Workers’ compensation emerged as a compromise between labor and industry during the late nineteenth and early twentieth centuries. Before workers’ compensation laws existed, injured employees typically had to sue employers in court to recover damages, an expensive and uncertain process. Click here for full article.

Attorney General Jeff Jackson
Attorney General Jeff Jackson Warns North Carolinians of Workers’ Compensation Fraud Scheme
Attorney General Jeff Jackson is warning North Carolinians who file workers’ compensation claims of a fraud scheme impersonating government and judicial officials to steal people’s money. Click here for full article.

Risk & Insurance
Pennsylvania Court Allows Doctor-Owned Pharmacy Referrals
In a decision that impacts how workers’ compensation insurers handle prescription drug claims, a 5-2 majority of the Pennsylvania Supreme Court ruled that a statutory ban on self-referrals does not prohibit physicians from directing injured workers to pharmacies in which the doctors hold a financial interest. Click here for full article.

Business Insurance
Tennessee Court Awards Worker $250K for Occupational Asthma
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Business Insurance
Court Denies Benefits for Worker’s Unexplained Hallway Fall
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Virginia Lawyers Weekly
Workers’ Compensation – Struck in Face by Forklift, Woman Suffers Brain Injury
In 2021, the claimant suffered an injury when she was struck in the face by a forklift in an accident, resulting in a traumatic brain injury. Click here for full article.

General News

Ogletree Deakins
World Cup Fever at Work: Does German Workers’ Compensation Cover Injuries During Staff Soccer?
Germany’s Hanover Social Court ruled on April 16, 2026 that a torn cruciate ligament sustained during an employer‑organized soccer tournament was not a work‑related accident because the tournament did not qualify as a company‑sponsored group event under statutory accident insurance. Click here for full article.

Risk & Insurance
Is Workers’ Comp’s Golden Era Transitioning to a New Normal? Three Threats that Could Reshape the Market
Workers’ compensation has been one of the insurance industry’s strongest success stories. Click here for full article.

Risk & Insurance
The Unintentional Impact of PBM Legislation on Workers’ Compensation
As policymakers across the country debate legislation to regulate Pharmacy Benefit Managers (PBMs), many bills include provisions on patient cost sharing, rebates, and formulary transparency in commercial health insurance. Click here for full article.

AJMC
Health Care Is Fixable: Workers’ Compensation Shows Employers Don’t Need to Wait for Washington
A staggering one-third of Americans—over 82 million people—are skipping meals, cutting back on utilities, or borrowing money to pay for health care, according to a recent West Health-Gallup survey. Click here for full article.

WorkersCompensation.com
Could Jailor get Benefits for PTSD Triggered by Prisoner’s Death?
Prior to June 2025, it was harder in New York for claimants to obtain benefits for PTSD. Essentially, they had to show that extraordinary stress at work caused the condition. Click here for full article.

WorkersCompensation.com
Safety Failures, Yelling at Injured Worker don’t Create Case for Tort Suit
An employee for a waste system sustained serious injuries during the course of his employment when his hand was caught in the pinch point of a garbage truck’s lift arms as the arms were being raise. Click here for full article.

WorkersCompensation.com
Work Comp Scam Targets Spanish-Speaking Injured Workers
Fraud in workers’ compensation brings up concerns such as exaggerated injuries, provider schemes, premium manipulation, or claim-related dishonesty. Click here for full article.

WorkersCompensation.com
Don’t Miss These 3 Important Changes in Workers’ Comp Pharmacy This Month
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