HCBeck, Ltd. v. Rice
284 S.W.3d 349 | Texas Supreme Court | 2009
What This Case Means for Subcontractors
A general contractor can qualify as a statutory employer in Texas by requiring subcontractors to enroll in an owner-controlled insurance plan, even if the owner purchases the policy. The Texas Supreme Court ruled that this written agreement satisfies the requirement to 'provide' workers' compensation insurance. This matters because it determines whether the general contractor gets immunity from lawsuits by injured subcontractor employees.
Key Takeaways
- •Get a written agreement in place requiring subcontractor enrollment in the site's workers' compensation plan—this protects you from employee injury lawsuits
- •Owner-controlled insurance plans count as 'providing' coverage under Texas law, so you don't have to purchase a separate policy yourself
- •Make sure your contract clearly states the subcontractor must enroll in the specified insurance plan to establish your statutory employer status
A general contractor provides workers' compensation insurance by written agreement ensuring subcontractor coverage.
Frequently Asked Question
If I require my subcontractors to use the owner's insurance plan, am I protected from their employee injury lawsuits?
Yes, under Texas law, if you have a written agreement requiring subcontractors to enroll in the site's workers' compensation plan, you qualify as a statutory employer. This gives you immunity from lawsuits by the subcontractor's injured employees, even though the owner purchased the policy.
Related Cases
Gall v. United States
Appellate courts must review all sentences under an abuse-of-discretion standard regardless of whether they fall inside or outside the Guidelines range, and cannot require extraordinary circumstances to justify sentences outside the range.
Texas Natural Resource Conservation Commission v. IT-Davy
Sovereign immunity bars a contractor's breach-of-contract suit against a state agency absent express legislative consent; neither the agency's conduct, contract terms, nor general statutes waive immunity from suit.
Piotrowski v. City of Houston
Municipal liability under § 1983 requires proof of official policy as the moving force; isolated employee misconduct insufficient, and equal protection claim time-barred.
Adarand Constructors, Inc. v. Pena
Federal race-based classifications must be analyzed under strict scrutiny regardless of whether they benefit or burden minorities, and the Fifth Amendment's equal protection obligation equals the Fourteenth Amendment's.
Northeastern Florida Chapter of the Associated General Contractors of America v. City of Jacksonville
An association of contractors has standing to challenge a minority set-aside ordinance without proving any member would have won a contract absent the ordinance; the injury is denial of equal competitive opportunity, not loss of a specific contract.
Martin K. Eby Construction Company, Inc. v. Dallas Area Rapid Transit
A contractor must exhaust administrative remedies established by a regional transportation authority before pursuing breach of contract claims in court, even when the authority lacks governmental immunity from suit.