Editorial: Lawmakers Should Correct Texas Supreme Court Workers’ Compensation Decision


The Austin American-Statesman ran an editorial today speaking out on a really bad decision by the pro-business Texas Supreme Court. The case is a little complicated, but boils down to allowing property owners to avoid liability for negligence if the owner declares itself to be a general contractor and buys workers' compensation insurance for the actual contractor. This is definitely not the long-established law in Texas, and this decision has been greatly criticized as being extremely anti-worker. Here are excerpts from the editorial:

The
Texas Supreme Court reversed long-settled state law regarding the
rights of injured workers to sue in some instances, but the Legislature
can restore the law – and should.

The
Texas Supreme Court has spoken once more on the Entergy case and has
refused to change its original bad ruling. But the Legislature can get
the last word by passing legislation to reverse this latest sign of the
court's extreme tilt toward business interests.

The Entergy case centered on whether the "premises owner" of a large
facility, in this case a utility power plant, could get immunity
against a lawsuit filed by a contract worker injured on the job simply
by declaring itself to be the general contractor and buying workers'
compensation coverage for the contractor and actual employer.

For years, the law in Texas has been clear: No. Attempts by some
business interests to change the answer to "yes" were defeated in the
Legislature. The fear was that plant owners would then have incentive
to slack off on plant safety just by purchasing workers' compensation
insurance when it hired a contractor to work on a plant, such as for
repairs or maintenance.

The case worked its way up to the Texas Supreme Court, which in 2007
ruled unanimously for Entergy. Criticism rained down on the court, and
not just from workers' groups. Legislators from both parties faulted
the court for misapplying long-settled law, as did the Texas
Association of Defense Counsel, whose members generally represent those
being sued — including plant owners.

Sen. Robert Duncan, R-Lubbock, the Senate's acknowledged expert on
workers' compensation law, has introduced a bill that would reverse the
court's ruling, as has Rep. Helen Giddings, D-Dallas. Giddings' House
Bill 1657 was recommended for approval on a 9-0 vote this week by the
House Business and Industry Committee and now goes to the full House.

The workers' compensation system is designed to provide employers an
incentive to compensate, through insurers, workers injured on the job.
In exchange, employers get immunity to lawsuits by those workers. The
system, the Legislature has rightly judged, must not provide plant
owners incentive to cut back on the expense of maintaining a safe plant
simply by paying a contractor's workers' compensation insurance policy.

And lawmakers should spell it out in terms that even a majority of
the Texas Supreme Court can't reinterpret to please certain business
interests.

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