State News : Texas

NWCDN is a network of law firms dedicated to protecting employers in workers’ compensation claims.


NWCDN Members regularly post articles and summary judgements in workers’ compensations law in your state.  


Select a state from the dropdown menu below to scroll through the state specific archives for updates and opinions on various workers’ compensation laws in your state.


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Texas

STONE LOUGHLIN & SWANSON, LLP

  512-343-1385

In a move sure to motivate injured employees to get up off the couch and go back to work, the 89th Legislature passed Texas House Bill 46 on June 20, 2025, set to take effect on September 1, 2025. The bill expands the conditions for which certain medical providers in the state can prescribe “low-level” tetrahydrocannabinols (THC) cannabis under the Texas Compassionate Use Program (TCUP).
  
Additionally, the level of permissible THC will increase, from the current limit of 1% THC by weight to up to 10 milligrams per dose, not to exceed 1 gram of THC per package.
 
Previously, medical marijuana under the Compassionate Use Program was limited to diagnoses rarely encountered in workers’ compensation claims, such as spasticity, Amyotrophic Lateral Sclerosis (ALS, or Lou Gehrig’s Disease), autism, terminal cancer, or incurable neurodegenerative diseases.  However, HB46 adds to that list some conditions that are often part of workers’ compensation claims: traumatic brain injuries and chronic pain.
 
Anyone familiar with current trends in Texas comp will recognize the seismic shift this expansion is sure to have on treatment and billing for work injuries.  “Traumatic brain injury” is an unfortunately vague term often used to diagnose mild and temporary cranial trauma without any lasting effects, such as a simple head contusion.  “Chronic pain,” meanwhile, is a favorite post-injury diagnosis used by some healthcare providers to prolong and inflate treatment—and the billing that goes along with it.  Circa September 2025, Insurance carriers can therefore expect to see more frequent billing for medical marijuana as part of injured workers’ treatment regimens for traumatic brain injuries and chronic pain.

In fact, already we have heard of one enterprising physician hoping to capitalize on the new legislation:
 

 

Copyright 2025, Stone Loughlin & Swanson, LLP

Last month we reported on House Bill 2488, which would permit Contested Case Hearings within the Division by Zoom conference or other forms of remote communication.  The bill passed the Senate in May 2025 and was signed into law by Governor Abbott on June 24.  Remote hearings can be held only at the agreement of the parties, or if there is a determination that good cause exists for the proceeding to be conducted that way.
 

Copyright 2025, Stone Loughlin & Swanson, LLP

The Division has hired a second Administrative Law Judge to handle its increasingly congested Austin docket. Jordan Woody earned her law degree from NYU in 2012 and became licensed in Texas a year later.  She specialized in employment law prior to joining the Division of Workers’ Compensation, working at Carter Arnett, LLC, and Thompson, Coe, Cousins & Irons, LLP.  We look forward to seeing her behind the bench.

However, we have not been looking forward to the departure of San Antonio ALJ John Bull, who left the Division on June 30.  Judge Bull joined the agency in July 2024 and quickly established himself as a thoughtful and astute adjudicator.  No word on what might be in store for Judge Bull, but he will be missed. 

Taking Judge Bull’s place in San Antonio will be the current Lubbock ALJ Sandra Schuck-Garrant.  That transfer is pending the hiring of a new Administrative Law Judge in that field office.
 

Copyright 2025, Stone Loughlin & Swanson, LLP

Our office recently received an email from a claimant attorney who may wish he had recalled it after hitting the ‘Send’ button.  Here is a what we found in the subject line of the email, redacted but otherwise verbatim:

Subject: ChatGPT said: Here’s a clean, professional email you can send to [Adjuster] at [Insurance Carrier] with a CC to [Attorney], counsel for the carrier: Subject: Notice of Termination and Severance – [Claimant] (DWC #_______)”

We assume that the subject line was an unintentional display of candor on the attorney’s part, as it is the first such message we have received openly acknowledging that it was composed through the AI program ChatGPT rather than by the actual attorney. Well, one man’s e-communication faux-pas is another man’s newsletter fodder, so now we must ask: what is ChatGPT’s hourly billing rate these days?

The question is only quasi-facetious, though.  As the legal profession grapples with AI-generated communications at an increasing frequency, should clients pay lawyers for correspondence that was generated by an AI program rather than by the attorney him or herself?  If so, is such work being billed at the same rate as it would have been if the attorney had drafted it?  ChatGPT is, after all, intended as a time-saving program.  Does it violate the code of professional ethics to produce or charge a client for communications produced artificially?  And how does one respond to an artificially generated email anyway, and should we even feel compelled to? 

The future of AI is uncertain but developing at an exponentially rapid pace.  We may have to answer these questions far sooner than any of us expected.  In the meantime, accept our assurance that this clean, professional newsletter was drafted by a sentient, carbon-based entity.
 

Copyright 2025, Stone Loughlin & Swanson, LLP

The annual Texas Workers’ Compensation Conference will be held on September 29 and 30 at the Embassy Suites in San Marcos.  The two-day compensapalooza will feature a wide array of topics, from “Data Analytics: Measuring and Managing Workers’ Compensation Outcomes” to “Leveraging Injury Data and Predictive Analytics to Manage Claims and Propel Organizational Health and Stability.”
 
On the evening of September 29 attendees can Head over to the hotel’s Spring Lake Ballroom for the fundraiser concert, from 7:45 to 9:15 p.m. Tickets to the show are $35.00 and benefit Kids’ Chance, a non-profit group that provides scholarships to children of those killed or severely injured in workplace accidents.  The featured “Head”liner is native Texan Sundance Head, winner of NBC’s The Voice in 2016.  Head’s signature tune may be “Darlin’ Don’t Go,” but you should ignore that and go anyway. To register, visit www.tdi.texas.gov/wc/events/wcconference.html

Sundance Head, winner of 'The Voice,' hit by bullet at his Texas ranch
Sundance Head: Not someone I ever thought I would find myself writing about in this newsletter.
 

Copyright 2025, Stone Loughlin & Swanson, LLP

Well, it’s officially summer, and you know what that means: murder! 
 

Not literally, of course, but perhaps literarily.  If you’ll soon be on vacation and need a good beach read, they don’t come any beachier than the Florida-set detective novels of John D. MacDonald. MacDonald, best known for 1957’s The Executioners (the basis for the movie Cape Fear) is beloved by whodunnit afficionados for his twisty narratives, shady characters, and dialogue so hard-boiled it should be served with toast. 

 

Narrative Drive: The Brass Cupcake by John D. MacDonald

  
For the uninitiated, a great place to start is his debut novel, The Brass Cupcake (Random House, 1950).   The title refers to the gold badge our hero, Cliff Bartellis, once wore on the police force, since reduced to a worthless trifle after his code of honor collided with the department’s systemic corruption. 
 
Now Cliff works as an insurance adjuster with the perilous specialty: recovering stolen jewels, then paying off half the value of the policy to whoever coughs up the goods, with a nice little commission for himself.  Except this time, the thief left something behind: the bludgeoned body of a nice little old lady. 
 
It seems that a $300,000.00 payout buys a lot of murder, and corpses begin accumulating like seaweed on the Florida coast.  Meanwhile, Cliff’s old buddies on the police force are none too pleased when their former brother in blue notices that all their suspects keep winding up in the morgue.  How long before they suspect him?  And, hey, isn’t he dating the dead lady’s niece…
But Cliff has set a trap for the perpetrator.  If he can keep his cool in the oppressive Florida heat, he might just find the killer, snag himself a tidy bonus, and get the girl (if she doesn’t get him first).  Has he got the smarts, instincts, and courage to expose the devious double-dealing? 
 
Of course he does.  After all, he’s an insurance adjuster.

Copyright 2025, Stone Loughlin & Swanson, LLP

Texas Legislature Eyes Changes to Workers’ Compensation 



Like a bad penny, the Texas Legislature returns to Austin, our home town, on January 14, and legislators already are filing bills that would significantly alter the workers’ compensation scheme.

At least one of those bills -- SB 423 -- could upend the dispute resolution process as we know it. Other bills would make less drastic, but still significant, changes.

Virtual hearings

SB 423 would require the Texas Department of Insurance, Division of Workers’ Compensation (DWC) to conduct contested case hearings by telephone or videoconference whenever the parties “mutually agree” to proceed in that manner. This would mark a significant departure from DWC’s current practice, in which parties are required to appear in person for nearly all contested cases hearings.

The bill was authored by Senator Sarah Eckhardt, a lawyer and Democrat representing Travis County. It appears generally consistent with a legislative recommendation from DWC. As we reported last month, DWC has issued its Biennial Report to the 89th Legislature in which, among other things, it recommended that the legislature amend the Labor Code “to allow contested case hearings . . . by videoconference if all parties agree to that format.”

DWC Commissioner Jeff Nelson has said that one reason for DWC’s recommendation was to help shape a bill that appeared inevitable anyway. “[T]hat bill in one version or another has been filed the past three sessions by parties that weren’t us,” Nelson told lawyers at the Texas Bar Advanced Workers’ Compensation Law Seminar in August, emphasizing that a legislative change should require both parties to agree to a virtual hearing. “Some of those allowed the claimant to have total say on if it was going to be virtual or not . . . [w]e had to work like crazy last session to rein in a lot of those bills and to keep [them] somewhat reasonable.”

But the introduced version of SB 423 does not appear to contain everything that DWC would like to see in it. Specifically, it does not contain a provision for DWC to override the will of the parties and conduct a hearing by videoconference even when the parties desire to proceed in person.  Nelson told lawyers at the August seminar that DWC maintains a “zero tolerance list” of injured workers “who are combative and threatening” and DWC would like authority to conduct a hearing by videoconference when one of the parties is a worker on the list.

Mandatory comp for construction workers

SB 338 and its companion, HB 875, as well as HB 480, would make workers’ compensation insurance coverage mandatory for workers in the construction industry. They would amend Labor Code section 406.096 to provide that a construction contractor or subcontractor “shall provide workers’ compensation insurance coverage for each employee.”

Cost-of-living adjustments for death benefit payments

HB 1292 would amend Labor Code section 408.181 to provide that the amount of a death benefit must be adjusted each year, as necessary, to reflect inflation. The change would apply only to claims based on an injury occurring after the effective date of the change and it would require insurance carriers to re-compute the amount of a death benefit each year. The amount of the adjustment would equal the percentage increase, if any, used by the United States Social Security Administration to provide cost-of-living adjustment for social security payments.

First responders - Presumption of compensability of infertility

SB 454 would create a presumption that a firefighter or emergency medical technician suffering from infertility is presumed to have developed the infertility during the course and scope of employment.

Designated Doctor exams and assignment of IR by telemedicine

HB 1066 would amend Labor Code section 408.0041, pertaining to Designated Doctor examinations, to allow DWC to order a Designated Doctor to conduct an examination by telemedicine if DWC determines that conducting the exam in that manner “is necessary to ensure access to a timely examination by a qualified doctor.” It would require a health care professional to be physically present in the room with the employee to assist with the examination and administer any necessary testing.

HB 1066 also would add new Labor Code section 408.1231 to allow a doctor to certify maximum medical improvement and assign an impairment rating by telemedicine for many injuries. It would require a health care professional to be physically present in the room with the employee to assist with the examination and administer any necessary testing unless the certifying doctor determines that the employee (1) is not at MMI or (2) has no possibility of impairment.


Copyright 2025, Stone Loughlin & Swanson, LLP

DWC Corpus Christi office welcomes new ALJ



 

The DWC has hired Paul Armstrong as an administrative law judge for the Corpus Christi field office. Judge Armstrong’s LinkedIn page shows that his prior judicial experience includes, among other things, over 19 years as an Administrative Law Judge for the Social Security Administration.

Welcome, Judge Armstrong!
 

Copyright 2025, Stone Loughlin & Swanson, LLP

Tip of the hat to DWC for penalizing hospital that ignored request for refund 

 


In a development that we salute, last month DWC ordered Memorial Hermann Health System - Southeast Hospital in Dallas to pay an administrative penalty due to the hospital’s failure to refund a payment after an insurance carrier requested it. Consent Order 2024-8987, dated 12/03/24, highlights a tool that insurance carriers have but seldom use to its full effect.

Specifically, Labor Code section 408.0271 and DWC Rule 133.260 allow an insurance carrier to request a refund of a payment to a health care provider when the carrier determines the payment was (1) an overpayment or (2) payment for an inappropriate service. Upon receipt of the request, the health care provider must refund the payment or file an appeal with the carrier within 45 days. If the provider appeals the carrier’s determination and the carrier denies the appeal, the provider must refund the payment within 45 days of notice of the denied appeal. Importantly, even if the provider requests dispute resolution from DWC, the provider still must refund the payment to the carrier while it pursues that remedy.

We at SLS regularly file complaints with DWC against health care providers that have failed to refund a payment on request by our carrier clients. Our experience has been that DWC diligently investigates such complaints and, more often than not, providers agree to refund the payments when they learn that DWC has opened an investigation into their refusal to do so.

Copyright 2025, Stone Loughlin & Swanson, LLP

Tip of the hat to DWC again for auditing the quality of Designated Doctor reports

 


 

In yet a second development that we applaud, last month the DWC announced that it will be conducting an audit of the quality of Designated Doctor reports.

The Medical Quality Review Calendar Year 2025 Annual Audit Plan, dated December 16, 2024, states that in calendar year 2025 the Medical Quality Review Panel will conduct one audit to evaluate “the quality of designated doctor reports and the necessity of additional testing or referrals ordered by designated doctors to resolve the issue in question.”

We at SLS hope that notice of the audit will cause Designated Doctors to elevate the quality of their reports, because we see a ton of bad ones.


Copyright 2025, Stone Loughlin & Swanson, LLP