WeVote
Log In

Bill

Bill

SB 338

Relating to required provision of workers' compensation insurance coverage for employees of building and construction contractors and subcontractors.

89th Legislature (2025) Introduced by Sarah Eckhardt

SB 338 mandates workers' compensation insurance for Texas construction contractors and subcontractors, extending required coverage to an industry currently allowed to opt out.

Referred to Business & Commerce
#contractors&subcontractors(s2563) #labor--workers'compensation(i0470)
0
WeVote Research Nonpartisan
Bill Summary · SB 338

Legislative bill overview

SB 338 would mandate that building and construction contractors and subcontractors provide workers' compensation insurance coverage for their employees in Texas. Currently, Texas allows most private employers to opt out of the state workers' compensation system, making coverage voluntary rather than required. This bill would eliminate that exemption for the construction industry.

Why is this important

Construction is among the most hazardous industries, with workers facing significant injury and death risks. Mandatory coverage would ensure injured construction workers have access to medical care and wage replacement benefits without having to prove employer negligence in court. Currently, uninsured injured workers may face financial hardship or lengthy litigation to recover damages.

Potential points of contention

  • Business cost concerns: Contractors argue mandatory insurance premiums would increase operational costs, potentially reducing competitiveness, particularly for small firms and subcontractors with thin profit margins
  • Exemption fairness: The bill targets only construction while most Texas private employers remain exempt from mandatory coverage, raising questions about why construction is singled out and whether other high-risk industries should be included
  • Compliance and enforcement: Questions remain about how the state would verify coverage, penalize non-compliance, and whether resources exist for adequate enforcement in a large, fragmented construction sector

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.