Tex.
Labor Code Section 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 (Employer Chargebacks Prohibited; Administrative Violation), 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.
Source:
Section 406.123 — Election to Provide Coverage; Administrative Violation, https://statutes.capitol.texas.gov/Docs/LA/htm/LA.406.htm#406.123 (accessed Jun. 5, 2024).
