(a) Except as provided by this section, a hiring contractor is not responsible for providing workers’ compensation insurance coverage for an independent contractor or the independent contractor’s employee, helper, or subcontractor. An independent contractor and a hiring contractor may enter into a written agreement under which the independent contractor agrees that the hiring contractor may withhold the cost of workers’ compensation insurance coverage from the contract price and that, for the purpose of providing workers’ compensation insurance coverage, the hiring contractor is the employer of the independent contractor and the independent contractor’s employees.
(b) A hiring contractor and independent contractor may enter into an agreement under Subsection (a) even if the independent contractor does not have an employee.

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Terms Used In Texas Labor Code 406.144

  • Contract: A legal written agreement that becomes binding when signed.
  • Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005

(c) Repealed by Acts 2017, 85th Leg., R.S., Ch. 467 (H.B. 2112), Sec. 11(2), eff. June 9, 2017.
(d) The hiring contractor shall send a copy of an agreement under this section to:
(1) the hiring contractor’s workers’ compensation insurance carrier; and
(2) the division, on the division’s request.
(e) An agreement under this section makes the hiring contractor the employer of the independent contractor and the independent contractor’s employees only for the purposes of the workers’ compensation laws of this state.
(f) The deduction of the cost of the workers’ compensation insurance coverage from the independent contractor’s contract price is permitted notwithstanding § 415.006.