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.


Contact information for NWCDN members is also located on the state specific links in the event you have additional questions or your company is seeking a workers’ compensation lawyer in your state.


Texas

STONE LOUGHLIN & SWANSON, LLP

  512-343-1385

DWC Releases Biennial Report to the 89th Legislature


On November 22, 2024, Commissioner Jeff Nelson released DWC’s biennial report to the 89th Legislature providing an update on the Texas workers’ compensation system. The biennial report includes two legislative recommendations.

One of the Commissioner’s recommendations is, essentially, a housekeeping matter removing outdated statutory language from the Labor Code which refers to the old Approved Doctors List (ADL). 

Prior to House Bill (HB) 7, passed by the 79th Legislature in 2005 and signed by the Governor on June 1 of that year, doctors treating injured employees in the workers’ compensation system were required to meet specific requirements and were registered on the Division-maintained ADL. HB 7 amended the Labor Code to eliminate the ADL effective September 1, 2007; however, some sections of the Labor Code still refer to the ADL. According to feedback received through health care provider outreach, these outdated statutory references to the ADL have resulted in confusion for some system participants who assume the old ADL registration and training are still required. Removal of the outdated statutory language is calculated to decrease such confusion for health care professionals who provide health care in the workers’ compensation system. 

The other recommendation, which is of greater interest to us, is the Commissioner’s suggestion that Labor Code §410.005 be amended to allow contested case hearings to be conducted by videoconference, if all parties agree. According to the Division’s report, this change will enhance flexibility and efficiency of CCHs by streamlining the administrative process, reducing travel-related burdens, and promoting access to justice while maintaining the integrity of the hearing process. The Division additionally anticipates the amendment will result in improvement of access to legal representation for injured employees living in remote areas or out of state, shortening of timelines to resolve disputes, and improvement in injured employees’ access to medical treatment, allowing them to return to work more quickly. 

Readers may recall that CCHs were held by videoconference or telephone during the COVID-19 breakout from March 2020, through July 2021. Based upon our experience with videoconference and telephonic CCHs during that period, we think CCHs conducted in that manner are less than ideal. It is not unusual that parties or witnesses may not have access to the Zoom application or a computer. When these parties or witnesses appear by telephone the judge is not able to adequately observe the witnesses’ demeanor and judge the credibility of their testimony. There may also be technical problems caused by poor cell phone reception or speaker phones which cut in and out resulting in participants talking over each other and being unable to hear everything that is said. 

The Biennial Report goes on to outline key trends in the current workers’ compensation system to help DWC and stakeholders identify improvements to maintain a fair and balanced workers’ compensation process. Some important key trends identified are an 81% decrease in workers’ compensation insurance rates since 2003; a reduction in health care costs of $338 million since 2012; and an 86%  reduction in the total number of opioid prescriptions from 2009 to 2022.

You may access and review the entire report concerning the current state of the Texas workers’ compensation system here.


Copyright 2024, Stone Loughlin & Swanson, LLP

DWC Adopts Designated Doctor and LIBs Rule Changes to Implement HB 2468, 88th Legislature (2023)


The Division on November 14, 2024, announced it had adopted amendments to 28 Texas Administrative Code (TAC) Chapter 127, Designated Doctor Procedures and Requirements and 28 TAC Chapter 131, Benefits - Lifetime Income Benefits. The amendments implement HB 2468, 88th Legislature, Regular Session (2023) which amended Texas Labor Code §408.0041 concerning Designated Doctor examinations, and enacted Labor Code §408.1615 concerning Lifetime Income Benefits for Certain First Responders.

You may access information concerning the amended 28 TAC §127.1 and new TAC §127.25 here and 28 TAC §§131.1 - 131.4 and 28 TAC §§131.10 – 131.14 here.

The Division also updated the following related DWC forms:

Revised: DWC Form-032, Request for Designated Doctor Examination. 
New: DWC Form-038, Application for Lifetime Income Benefits. 
New: DWC Form-039, First Responder’s Annual Certification for Lifetime Income Benefits. 
Revised: DWC PLN-04, Notice of Eligibility for Lifetime Income Benefits. 
Revised: DWC PLN-07, Notice of Change of Indemnity Benefit Type.  

You may access the revised and new DWC Forms here.
 

Copyright 2024, Stone Loughlin & Swanson, LLP

Texas Work-Related Injuries and Illnesses at Lowest Rate in 10 Years


Each year the Division compiles data on work-related injuries and illnesses in Texas for the U.S. Department of Labor, Bureau of Labor Statistics. The report released last month for 2023 reveals that Texas had a 1.8 injury and illness rate per 100 equivalent full-time workers. This is the lowest rate for Texas in the past 10 years and is well below the national incident rate of 2.4.

You may access the full report here.


Copyright 2024, Stone Loughlin & Swanson, LLP

DWC Compliance Webinar slated for December 11, 2024


The Division has announced scheduling of its next CompCourses webinar on December 11, 2024 at 1:00 p.m. The subject is compliance in the Texas workers’ compensation system. Participants will learn the differences between a dispute and complaint, the administrative violation process, and the lifecycle of a fraud case. The course is free, is approved for 1 hour of TDI general education credit, and just might keep some of us from getting into trouble!

Interested parties may register to take advantage of this valuable resource here.


Copyright 2024, Stone Loughlin & Swanson, LLP

Virtual Quarterly Meeting scheduled for December 12, 2024


DWC will host a quarterly stakeholder meeting for insurance carriers and health care providers via Zoom on Thursday, December 12, 2024 from 1:30 to 3:00 p.m. The meeting will provide an update on routine information and data topics and will highlight current issues relevant to each industry. 

You may access the meeting agenda and Zoom information here.

Copyright 2024, Stone Loughlin & Swanson, LLP

TDI-DWC Office Closures for December/January


All Division Offices will be closed for the Christmas Holidays on December 25, 2024, and December 26, 2024.
 


The Division will be closed for the New Year Holiday in the afternoon on December 31, 2024, and all day on January 1, 2025, New Year’s Day.
 


Copyright 2024, Stone Loughlin & Swanson, LLP

Shenanigans Aren’t Limited to Politics


Claimant attorneys’ attempts to negate a carrier’s subrogation interest are to be expected but their methods of bilking carriers out of the amounts they are due can get as convoluted and Machiavellian as this year’s election. The Tyler Court of Appeals recently reaffirmed the importance of ensuring that carriers receive “first money reimbursement” in Old Republic Ins. Co. v. Debra Morris, et al. The plaintiffs in that case had attempted an end-run around the first money rule by settling with most of the third-party defendants pre-trial, and subsequently obtaining a verdict apportioning most of the responsibility to the employer. The plaintiffs argued that the “employer responsibility offset” (ERO)* should apply to all the funds received, including the pre-trial settlements, which in this case wiped out the carrier’s lien of more than $3 million. In a tremendous win for Old Republic, the appellate court held that the reduction of the carrier’s subrogation interest is limited to the amount that the employer’s fault actually costs the claimant after applying sections 33.012(b) and 33.013(a) of the Texas Civil Practice and Remedies Code.** In this particular case, that meant that the carrier’s subrogation lien was reduced by only $33,967.20.

*Texas Labor Code section 417.001 provides that a carrier’s subrogation interest is reduced by the amount by which the court reduces the judgment based on the percentage of responsibility for the injury that the jury/judge attributes to the employer. This is known as the “Employer Responsibility Offset” (ERO).
**Section 33.012(b) of the Texas Civil Practices and Remedies Code requires the court to reduce the amount of the claimant’s damages by a percentage equal to the claimant’s percentage of responsibility for the claimant’s injuries. Section 33.013(a) limits the claimant’s damages recovery from a particular defendant to the “percentage of the damages found by the trier of fact equal to that defendant’s percentage of responsibility” for the claimant’s injuries.


Copyright 2024, Stone Loughlin & Swanson, LLP

You Snooze, You Lose


DWC released the 2024 insurance carrier PBO results and 1/3 passed the test with flying colors! The DWC evaluated 130 carriers and placed them into a high, average, or poor regulatory tier based on the following categories:

  • Timely payment of initial temporary income benefits (TIBs).  

  • Timely reporting of initial payment data to DWC by electronic data interchange (EDI). (This measure was not factored into the tier placement.)

  • Timely processing of initial medical bills.

  • Timely processing of requests for reconsideration of medical bills.

  • Timely reporting of medical data to DWC by EDI.

High tier performers are generally exempted from DWC Compliance & Investigations Audits, while average performers are included if selection criteria are met, and poor performers are included regardless of whether selection criteria are met. A carrier’s PBO tier rating is also one of the factors that DWC is required to consider when imposing sanctions on any carrier that commits an administrative violation.
 

Insurance Carrier Tier Assessments Overall Results
 

Assessment Year

Insurance Carriers

High Tier Performers

Average Tier Performers

Poor Tier Performers

2024

130

44

82

4

 

Congratulations to all you High Tier Performers out there!
 


 

Copyright 2024, Stone Loughlin & Swanson, LLP

Moral of the Story: Don’t Fall Asleep During the Hearing

 

A total of three Appeals Panel decisions have been published since the beginning of September. System participants can breathe a sigh of relief, knowing that even when your judge zones out during the hearing, the Appeals Panel has your back:

In Appeal No. 241147, the Panel remanded the case because the ALJ recounted a mechanism of injury in his/her decision that was nowhere in evidence. The ALJ wrote that the claimant slipped and fell backwards five feet and had pliers in his back pocket. Instead, the claimant testified that he felt a sharp pain in his left shoulder while sanding an airplane. 

Similarly, in Appeal No. 241172, the Panel reversed a 0% IR and rendered a decision that the IR was 5% because there was no certification in evidence from any doctor certifying the claimant with a 0% IR.

And in other news, the Appeals Panel continued to demonstrate its usefulness by reforming a finding of fact in Appeal No. 241035 to correct the parties’ stipulation to an anomaly of the tooth position of fully erupted teeth to numbers 9, 23, and 24 and not tooth 10 or 25.
 


Copyright 2024, Stone Loughlin & Swanson, LLP

Never Fear: Some DWC Staff Aren’t Letting the Grass Grow Under Their Feet


State agencies are required to review rules every four years and either readopt, readopt with amendments, or repeal the rule. So this month, DWC went out on a limb and readopted all sections in Chapters 126 (General Provisions Applicable to All Benefits), 127 (Designated Doctor Procedures and Requirements), and 128 (Benefits – Calculation of Average Weekly Wage). Well done, guys and gals.

DWC is accepting public comments on a proposed rule amending Rule 120.2 to update its Austin address and OIEC’s and DWC’s website addresses. If you’re looking to shake things up a little bit, you can let the DWC know you take issue with their changes of “shall” in the rule to “must” or “will.”

The DWC also renamed Rule 147.10 “Commutation of Impairment Income Benefits.” In case you were diverted by all the election shenanigans, this was necessary because in April 2024, the DWC inadvertently named this section Rule 147.11 (the horrors). 

DWC also made DWC Forms 001 (Employer’s First Report of Injury or Illness), 002 (Employer’s Report for Reimbursement of Voluntary Payment), and 006 (Supplemental Report of Injury) more attractive… and removed references to outdated violation language that the Legislature removed from the law… in 2005.
 


Copyright 2024, Stone Loughlin & Swanson, LLP