The bill, H.B. No. 480, amends the Labor Code to mandate that building and construction contractors and subcontractors provide workers' compensation insurance coverage for all their employees. The revised language specifies that contractors must certify in writing that they provide this coverage for their employees on public projects. Additionally, if a contractor employs subcontractors, they must also obtain written certification from each subcontractor confirming that they provide workers' compensation insurance for their employees.

The bill also clarifies that contractors and subcontractors can fulfill their insurance obligations through various methods, including group plans or owner-controlled consolidated insurance programs. Furthermore, it stipulates that the insurance coverage must be satisfactory to the governing body of the governmental entity involved in the public project. The changes will apply only to contracts entered into on or after the effective date of the Act, which is set for September 1, 2025.

Statutes affected:
Introduced: Labor Code 406.096 (Labor Code 406)