HBA-ATS H.B. 2507 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2507 By: George Business & Industry 3/11/1999 Introduced BACKGROUND AND PURPOSE Section 408.001 of the Labor Code provides that workers' compensation benefits are the exclusive remedy of an employee covered by workers' compensation insurance against the employer or an agent or employee of the employer for work-related injuries sustained by the employee. Injured employees must look exclusively to the insurance carrier for compensation for injuries sustained on the job. They are prohibited from seeking common-law remedies from their employer and from their employer's agents and employees. Omitted from the statute are business entities such as parent corporations and subsidiary corporations of the employer who provides the workers' compensation coverage. Because of this omission, these entities may find themselves defendants in a common-law suit brought by employees of business units these entities either own or control or which control or own them. H.B. 2507 includes a parent corporation, a subsidiary corporation, or a subsidiary of a parent corporation of an employer, which are named insureds on the same policy of workers' compensation as an employer, among the parties to which the exclusive remedy of recovery of workers' compensation benefits by an injured employee applies. As amended, the law prohibits an employee from seeking common-law remedies from his employer, a parent corporation, subsidiary corporation, or subsidiary of a parent corporation of the employer, as well as from the employer's agents and employees. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 408.001, Labor Code, to include a parent corporation, a subsidiary corporation, or a subsidiary of a parent corporation of an employer, which are named insureds on the same policy of workers' compensation insurance as an employer, among the parties (employer and its agents and employees) to which the exclusive remedy of recovery of workers' compensation benefits by an injured employee applies. Makes conforming changes. SECTION 2. Effective date: September 1, 1999. Makes application of this Act prospective. SECTION 3. Emergency clause.