April 21, 2014 3:17 PM

Battle could be looming over whether workers' comp should remain optional in Texas

Some worry about the “demise of Texas business,” others say system is abused

On Tuesday, lawmakers in the only state in America where workers’ comp insurance is optional are scheduled to start taking a hard look at whether that should still be the case. Texas House Speaker Joe Straus has asked the Business and Industry Committee to "study the voluntary nature of workers' compensation in Texas and how it meets the needs of employers and employees."

Those few words have the potential to spark a fight between employers who feel they’re often underbid because they offer coverage and those who would defend the system by saying, among other things, that a requirement to offer it won't allow them to tailor a plan for their employees. Businesses that choose not to offer it are called “non-subscribers,” and they are required to give written notice of that each year to the Texas Department of Insurance.

Texas Association of Business Vice President of Government Affairs Cathy DeWitt said a requirement for all companies to offer workers’ comp insurance would be a real hindrance for most employers. "It would really be the demise of Texas business and our economy if we did that," DeWitt said.

By Scott Braddock