Texas Labor Code 418.002 – Penalty for Fraudulently Obtaining Workers’ Compensation Insurance Coverage
Current as of: 2024 | Check for updates
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(a) A person commits an offense if the person, with the intent to obtain workers’ compensation insurance coverage under the workers’ compensation insurance laws of this state or to avoid payment of premiums due for that coverage, for himself or another, knowingly or intentionally:
(1) makes a false statement;
(2) misrepresents or conceals a material fact; or
(3) makes a false entry in, fabricates, alters, conceals, or destroys a document other than a governmental record.
(b) An offense under Subsection (a) is:
(1) a Class A misdemeanor if the amount of premium avoided is less than $2,500; and
(2) a state jail felony if the amount of the premium avoided is $2,500 or more.
Attorney's Note
Under the Texas Codes, punishments for crimes depend on the classification. In the case of this section:| Class | Prison | Fine |
|---|---|---|
| State jail felony | between 180 days and 2 years | up to $10,000 |
| Class A misdemeanor | up to 1 year | up to $4,000 |
Terms Used In Texas Labor Code 418.002
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Restitution: The court-ordered payment of money by the defendant to the victim for damages caused by the criminal action.
(c) The court may order a person to pay restitution to an insurance company, including the Texas Mutual Insurance Company, if the person commits an offense under this section.