New Laws for Texas Workers' Comp
Recent Legislative Updates in 2025
Yes, Texas made several significant changes to its workers' compensation laws in 2025. The 89th Legislative Session enacted multiple bills affecting the Texas workers' compensation system, with most changes taking effect between May and September 2025.
Key Changes That Took Effect in 2025
Videoconference Hearings: HB 2488 allows the Division of Workers' Compensation (DWC) to conduct contested case hearings by videoconference if all parties agree, or DWC can make a "good cause" determination to conduct hearings remotely even if parties don't agree. This change became effective June 20, 2025.
First Responder Benefits Expansion: HB 331 expanded heart attack and stroke presumptions for first responders by removing "nonroutine" from stressful activities and adding "law enforcement" as qualifying stressful activity. It also creates an eight-hour window after a shift ends for presumed work-related incidents.
Emergency Response Coverage Changes: HB 4464 restructured workers' compensation coverage for Texas Division of Emergency Management (TDEM) disaster response teams, clarifying employer-employee relationships for first responders activated by TDEM or injured during sanctioned training.
Major Funding and Regulatory Changes
New Funding Mechanism: SB 1455 replaced the maintenance tax with a "surcharge" system for funding workers' compensation regulation, allowing insurance carriers to recover costs through rate filings or direct charges to policyholders. This change takes effect January 1, 2026.
AI Oversight in Medical Reviews: SB 815 restricts how utilization review agents can use artificial intelligence in workers' compensation medical benefit decisions and allows the commissioner to audit AI usage at any time.
Administrative and Structural Changes
Dissolution of Guaranty Fund: SB 264 mandates the dissolution of the Texas Self-Insurance Group Guaranty Fund, with the board required to submit a wind-down plan by December 1, 2025, and no new group certifications after September 1, 2025.
Regulatory Reform: SB 14 created the Texas Regulatory Efficiency Office under the Governor's office to streamline agency rules and improve public access to regulatory information, while clarifying that courts aren't required to defer to agency legal interpretation.
These changes reflect Texas's ongoing efforts to modernize its workers' compensation system, particularly in areas of technology adoption, first responder protections, and regulatory efficiency, while maintaining the state's unique voluntary participation model for most private employers.