Texas Court Sinks Retaliation Suit Under Workers' Comp Act

Law360, Dallas (August 29, 2012, 4:41 PM EDT) -- Companies that represent to workers they subscribe to a workers' compensation fund but don’t actually carry the insurance can’t be sued for retaliatory firing under a state statute governing workers' comp, a Texas appeals court held Tuesday.

The Fifth Court of Appeals in Dallas said an employee handbook that represents that the employer carries workers' compensation insurance isn’t enough to form the basis of a suit under the Texas Workers’ Compensation Act. The act is expressly limited to apply to companies that “subscribe” — those that...
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