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TXANS
TXANS Association of Responsible Nonsubscribers

807 Brazos Street,
Suite 802
Austin, TX 78701
Ph: 512-477-7357
Fax: 512-477-3943

TXANS's News/Press Releases

11/25/2005

NEW LAW AFFECTS BUSINESSES THAT CHOOSE TO OPERATE WITHOUT WORKERS' COMPENSATION COVERAGE

The Texas Association of Responsible Nonsubscribers (TXANS) reports that businesses that elect to operate as nonsubscribers to the workers’ compensation system should review their injury benefit programs to make sure they are in compliance with new provisions contained in the most recent workers’ compensation reform law that became effective on September 1, 2005.

This newest reform law includes requirements that are intended to discourage the use of post-injury waiver agreements, which are utilized by a small percentage of nonsubscribing businesses. Despite the fact that certain waiver agreements are invalid, nonsubscribers can utilize other methods for resolving disputes that may arise from the provision of benefits associated with work-related injuries.

The new workers’ compensation law also increases the wage benefit for subscribing employees approximately 15%. Since nonsubscribers oftentimes offer the same or higher wage benefits, they may want to re-examine their injury benefit plans to ensure that employees receive least as much or hopefully more than an employee would receive under workers’ compensation. Employees of subscribing businesses typically receive approximately 70% of their weekly wage while many of TXANS members provide in excess of 80% of the injured employee’s average weekly wage. In addition, benefits offered under workers’ compensation require a waiting period while most of TXANS’ members initiate wage replacement benefits immediately following an injury.

TXANS is a non profit association that promotes the use of sound and ethical practices relating to injury prevention and the provision of quality workplace injury benefits by employers that elect to operate as nonsubscribers to the Texas workers’ compensation system.

For additional information about TXANS, please visit www.txans.org.

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