The bill, S.B. No. 338, amends Section 406.096 of the Labor Code to establish clearer requirements for workers' compensation insurance coverage for employees of building and construction contractors and subcontractors. It mandates that contractors provide workers' compensation insurance for each of their employees, and similarly, subcontractors must do the same for their employees. Additionally, governmental entities entering into building or construction contracts are required to ensure that contractors certify in writing that they provide such coverage, and if subcontractors are involved, they must also provide written certificates confirming their coverage.

The bill also introduces provisions allowing contractors and subcontractors to obtain workers' compensation insurance through various methods, including group plans or owner-controlled consolidated insurance programs. It specifies 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)