We have included the actual text of Section 408.001 of the Texas Labor Code which applies to an employer that has workers compensation insurance coverage. The provision allows the subscribing employers to generally escape liability for claims of negligence by worker injured during the course and scope of their employment. This is a major benefit to employers in dramatically reducing their exposure for damages related to on-the-job injuries. The following is a resource for our clients.

§ 408.003. REIMBURSABLE EMPLOYER PAYMENTS;  SALARY CONTINUATION;  OFFSET AGAINST INCOME BENEFITS;  LIMITS.
   (a) After an injury, an employer may:

        (1)  initiate benefit payments, including medical benefits;  or            

        (2)  on the written request or agreement of the

employee, supplement income benefits paid by the insurance carrier

by an amount that does not exceed the amount computed by subtracting

the amount of the income benefit payments from the employee's net

preinjury wages.

    (b)  If an injury is found to be compensable and an insurance

carrier initiates compensation, the insurance carrier shall

reimburse the employer for the amount of benefits paid by the

employer to which the employee was entitled under this subtitle. 

Payments that are not reimbursed or reimbursable under this section

may be reimbursed under Section 408.127.

    (c)  The employer shall notify the division and the insurance

carrier on forms prescribed by the commissioner of the initiation

of and amount of payments made under this section.

    (d)  Employer payments made under this section:                               

        (1)  may not be construed as an admission of compensability;  and          

        (2)  do not affect the payment of benefits from another source.            

    (e)  If an employer does not notify the insurance carrier of

the injury in compliance with Section 409.005, the employer waives

the right to reimbursement under this section.

    (f)  Salary continuation payments made by an employer for an

employee's disability resulting from a compensable injury shall be

considered payment of income benefits for the purpose of

determining the accrual date of any subsequent income benefits

under this subtitle.

    (g)  If an employer is subject to a contractual obligation

with an employee or group of employees, such as a collective

bargaining agreement or a written agreement or policy, under which

the employer is required to make salary continuation payments, the

employer is not eligible for reimbursement under this section for

those payments.

    (h)  Payments made as salary continuation or salary

supplementation do not affect the exclusive remedy provisions of

Section 408.001.

Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993.  Amended

by Acts 1999, 76th Leg., ch. 954, § 5, eff. Sept. 1, 1999;  Acts

1999, 76th Leg., ch. 1003, § 1, 2, eff. Sept. 1, 1999;  Acts 2005,

79th Leg., ch. 265, § 3.078, eff. Sept. 1, 2005.