State News : Texas

NWCDN is a network of law firms dedicated to protecting employers in workers’ compensation claims.


NWCDN Members regularly post articles and summary judgements in workers’ compensations law in your state.  


Select a state from the dropdown menu below to scroll through the state specific archives for updates and opinions on various workers’ compensation laws in your state.


Contact information for NWCDN members is also located on the state specific links in the event you have additional questions or your company is seeking a workers’ compensation lawyer in your state.


Texas

STONE LOUGHLIN & SWANSON, LLP

  512-343-1385


The Importance of Perseverance for Student Success - TigerCampus Hong Kong

Say what you will about Macedonio Sanchez Guillen, but the man is determined -- he simply doesn’t give up. In 2023, and then again in 2025, he sued his lawyer, his former employer, and his workers’ compensation insurance carrier for things they allegedly did some two decades earlier.

It all started in 2001 when Guillen suffered a legitimate work injury while operating a backhoe that overturned. His employer carried workers’ compensation insurance, and the insurance carrier accepted his workers’ compensation claim and began paying benefits. A dispute arose, so Guillen retained an accomplished workers’ compensation attorney in 2003. That attorney obtained additional benefits for Guillen through the dispute resolution process at the Texas Department of Insurance, Division of Workers Compensation, but he declined to sue the carrier in district court as Guillen demanded and withdrew from representation in December 2004.

But the attorney had not seen the last of Macedonio Sanchez Guillen. Not by a long shot.

Guillen waited. For nineteen years and four months he waited. And then, in April 2023, just about the time that Texas hill country bluebonnets were at their peak bloom, Guillen slapped a law suit on the attorney, his employer, and the carrier, seeking hundreds of millions of dollars in damages. In the petition, Guillen alleged that the three had perpetrated a continuous and premeditated conspiracy to violate his human rights for the previous 21 years.  A Travis County district court took no time in dismissing Guillen’s claims for lack of jurisdiction.

Guillen didn’t give up. Instead, he pivoted. He requested a Benefit Review Conference at the Division. But the Division denied his request, noting that he had not identified a violation of the Texas Workers’ Compensation Act or Division rules. Guillen then asked the Division to schedule a Contested Case Hearing, but the Division denied that request, too, noting that compensability had not been denied and that Guillen had reached maximum medical improvement and had been assigned an impairment rating. So, Guillen repeated his request for a BRC, but the Division denied his request again. And then he repeated his request for a hearing, but the Division denied that request again too. Four requests, four denials.

At this point, most mortal men would have thrown in the towel. Not Guillen. He simply sued in district court again. This time he sought $480 million dollars, including $150 million dollars in punitive damages, $50 million dollars for medical expenses, and $50 million dollars for “moral damage” (whatever that is).  The district court promptly dismissed Guillen’s claims again. It dismissed his claims against the employer and carrier because he had failed to exhaust his administrative remedies at the Division, and it dismissed his claims against the attorney because they were too old.

Bloody, but unbowed, Guillen appealed. And in a decision filed March 11, 2026, the Third Court of Appeals affirmed the trial court’s dismissal. Regarding Guillen’s claims against the employer and the carrier, the appeals court cited In re Crawford & Co. and agreed that Guillen failed to exhaust his administrative remedies at the Division. The court acknowledged that Guillen had requested dispute resolution at the Division four times and had been denied four times, but it concluded that Guillen had not shown that his complaints to the Division overlapped the claims he made in the district court. It also observed that Guillen had not explained “why he did not pursue an appeal and judicial review of those denials.” Regarding Guillen’s claims against the attorney, the appeals court agreed that the period of limitations had run.

But fear not. Guillen is not done. On March 19, 2026, he filed a motion for rehearing in the court of appeals and that motion is pending.
 


 Why did I Receive a SEC Subpoena ...

  
When an Administrative Law Judge at the Texas Department of Insurance, Division of Workers’ Compensation issues a subpoena and the target of the subpoena fails to comply, either the ALJ or the party requesting the subpoena may seek an order compelling compliance from a state district court. But the party resisting issuance of the subpoena may not seek an order quashing the subpoena from the district court. That is the holding of the Fifteenth court of appeals in an opinion by Justice Scott Field in February.

The court was considering a subpoena issued by an ALJ in a claim involving the death of Lauren Smith, a paramedic for Fort Bend County EMS who passed away while at home. Her spouse, Joshua Heiliger, filed a claim for death benefits, contending that Lauren died in the course and scope of her employment because stress from working a 48-hour shift was a factor in her death.

Fort Bend County disputed compensability and sought a subpoena for Lauren’s mental health records from John Marcellus, M.D., the psychiatrist who prescribed Lauren’s ADHD medication. Fort Bend County argued that those records were relevant because Dr. Marcellus might have taken into account Lauren’s hypertension along with her complaints about stress.

The ALJ issued the subpoena over Heiliger’s objection, and Heiliger filed suit seeking a temporary restraining order against the issuance of the subpoena in district court. Fort Bend County and the ALJ filed pleas to the jurisdiction, but the district court granted the request for a TRO and, later, a temporary injunction. Fort Bend County and the ALJ then filed interlocutory appeals of the district court’s temporary injunction order.

The court of appeals found that the temporary injunction order was void because the district court had no jurisdiction to enter it. The court explained that the Texas Government Code expressly permits a party or an ALJ to seek an order compelling compliance with an ALJ’s subpoena from a state district court. Tex. Gov’t. Code §2001.201(a). But, the court said, “conspicuously absent from the remedies the Legislature provided is the ability for the objecting party to seek relief from the subpoena in district court.” In re Fort Bend County, 2026 WL 502194, February 24, 2006.
 


Free CE credit, Anywhere. Anytime. CompCourses.

 
Readers of The Compendium may recall DWC’s launching two years ago of CompCourses. These free webinars are designed to benefit workers’ compensation professionals, including adjusters, employers, and healthcare staff, by providing essential education on the workers’ compensation system, delivered in free 1-hour webinars. Not only are participants able to stay informed on current trends and improve their professional skills, they are also able to earn free Continuing Education (CE) credits by watching the webinars and completing a short quiz.
 
DWC announced last month that its CompCourses webinars will now be available in an on-demand, self-study format, allowing participants to learn and earn CE credit whenever it fits their schedule by watching previously recorded CompCourses webinars and completing the short quiz to earn 1 hour of TDI self-study CE credit.
 
Earning on-demand credit could not be easier! Simply visit the CompCourses webpage here and select the course you wish to take. You will fill out a Microsoft form, watch the 1-hour webinar on YouTube, and take the quiz to test your knowledge.
 
Voila…..
 
DWC has announced that it will continue to offer live CompCourses in 2026, affording participants the opportunity to engage directly with subject-matter experts and earn CE credit.
 
CompCourses webinars for 2026 are planned as follows:

  • Navigating the Top 10 Workers’ Compensation Disputes – Spring 2026.
  • Texas Workers’ Compensation Income Benefits 101 – Summer 2026.
  • Medical Fee Dispute Resolution – Fall 2026.
  • Return to Work – Winter 2026.

Copyright 2026, Stone Loughlin & Swanson, LLP 

DWC is considering amending 28 Texas Administrative Code Chapter 152 concerning attorney fees and sought comments through last month on whether changes to the current hourly rate for attorney fees are necessary.
 
We note that when the Act was implemented in 1991, the approved hourly rate for attorney fees was $150. That rate remained in place for 26 years, until 2017, when it was increased to $200.
 
Per the Bureau of Labor Statistics Consumer Price Index Inflation Calculator, $200 in January, 2017, has the same buying power as $266.89 in December, 2025. Further, $200 in December, 2025, has the same buying power as did $149.88 in January, 2017. In other words, due to inflation, it’s as if the rate was never increased.

 

               

By comparison, the maximum weekly temporary income benefit in 1991 was $428, and the minimum was $64. By 2016, the maximum weekly benefit had risen to $895, and the minimum to $134. Today, the maximum weekly benefit is $1,271, and the minimum is $191. So, benefit levels have nearly tripled since 1991, while the attorney hourly rate has increased only once and remains at $200 nearly a decade later.  Meanwhile, that rate must cover the overhead required to operate and maintain an effective law practice which has increased in ways that were inconceivable in 1991.
 
Workers’ compensation now has the second lowest average hourly rate of any practice area at an average of $180, second only to juvenile law at $146, while the average hourly rate for all practice areas is $367. Hourly Rates in Texas
 
The overarching concern is that if the rate cap is not raised, the workers’ compensation bar will continue to shrink, as it is doing now, as older, experienced attorneys retire and new attorneys choose other practice areas over workers’ compensation law because it is more difficult to make the numbers work.  At that point, employees, employers, and carriers will no longer be able to obtain effective legal representation in this highly complex area of the law.

Copyright 2026, Stone Loughlin & Swanson, LLP 


 
  

Death investigation professionals aka last responders must have a powerful lobby.  DWC adopted rule amendments that take effect January 29, 2026 to implement Texas Labor Code Section 504.057 which requires expedited medical benefits and accelerated medical dispute resolution for claims for medical benefits by a “death investigation professional” who sustains a serious bodily injury in the course and scope of employment, and requires that the death investigation professional inform DWC and the independent review organization that a contested case hearing or appeal involves a death investigation professional. 
 
When the legislature enacts laws that provide preferential treatment for such a narrowly defined class of injured workers, it can cause more problems than it solves with increased regulatory complexity, among other things.  We recommend doing a study in a year or two to see how many times these new “last responder” rules are invoked.  Let us know your prediction!       
 

Copyright 2026, Stone Loughlin & Swanson, LLP 

DWC announced that its 2026 initiatives include online medical fee dispute submissions, remote interpreters for CCHs, a pilot program to explore the use of AI-based interpretation tools, and use of AI for a customer service knowledge base.
 
If you haven’t spotted the trend yet, the watchword here is “AI,” the use of which is gradually encroaching on the practice of law, as it is in so many other fields.  For all AI’s benefits, there is reason to worry about his increasing presence.
 
AI has the capacity to invent facts and create information that does not exist to support its response and/or to appease the perceived bias of the user. One well-known example is of a lawyer who sued Colombian airline Avianca several years ago, alleging that a food and beverage cart injured his client’s knee while he was onboard a flight. The lawyer submitted a brief using ChatGPT to do his legal research, but the AI tool invented case law entitled Martinez v Delta Air Lines, Zicherman v Korean Air Lines, and Varghese v China Southern Airlines. When Avianca’s attorneys informed the judge that they could not locate the cases cited, the plaintiff’s lawyer had to ‘fess up and admit he had used ChatGPT. He said he asked ChatGPT to cite its sources and AI responded that the cases could be located in the Westlaw and LexisNexis databases. The judge ultimately sanctioned the lawyer and his law firm.

Likewise, our firm has received communications from opposing attorneys who have relied extensively on AI programs to generate their correspondence, a great deal of which proved to be incorrect.  Citations to the Texas Labor Code and Texas Administrative Code are often out-of-date, or otherwise non-existent.  Case law and Appeals Panel Decisions have similarly been misinterpreted and misquoted.  It has been our experience that checking and correcting AI-generated documents often offsets the supposed time saved in relying on it in the first place.

AI as a tool for collating data remains in its infancy, and as with any infant, it requires constant supervision.  While there are benefits to its use, there are substantial risks, too, and for that reason it is the policy of this firm not to rely on it in any capacity.

Copyright 2026, Stone Loughlin & Swanson, LLP

At the DWC Quarterly Stakeholder Meeting held on January 21, 2026, the DWC reported on their 2025 accomplishments and their plans for 2026.
 
Online Tools
 
New online tools introduced by the DWC over the last year include: 

  • A nifty benefit estimator tool that even includes a calculator for estimating the average weekly wage when there are multiple employers: Benefits Estimator
  • An E-File online reporting tool for non-subscribers - Employer E-File - where employers can report workplace injuries, illnesses, and deaths. The too also allows non-subscribers to file, save, and manage annual notices online.  
  • A searchable database for all kinds of interesting claims data collected by DWC:


Copyright 2026, Stone Loughlin & Swanson, LLP

Commissioner of Insurance Cassie Brown retired after more than four years overseeing the Texas Department of Insurance. Governor Greg Abbott appointed Amanda Crawford in her stead to oversee the department, for a term set to expire on 2/1/27. Ms. Crawford was serving as the executive director of the Department of Information Resources and is Texas’ chief information officer. It remains to be seen if and how the change in leadership at TDI will impact DWC since it is technically a division within the Department of Insurance.
 
In ALJ news, Barham Richard has joined the DWC as a traveling Administrative Law Judge based out of Austin. Mr. Richard has an extensive background serving as legal counsel for the Texas Commission on Environmental Quality, Lone Star Legal Aid, and the Texas Office of Public Utility Counsel. He most recently served as a Senior Staff Attorney for the Texas Medical Board. We are glad to have him join us in the wonderful world of workers’ compensation!
 
Congratulations are also in order to Christina Figueroa, Sarah Hart, and Avery Fortenberry, all of whom have been recently promoted from PROs to BROs. We look forward to working with them all during our Benefit Review Conferences.

Change is also afoot in Lubbock, where the DWC is searching for a new home for its offices and seems set on giving up its lovely quarters at 22 Briercroft Office Park.  For those who have never made the attempt, trying to locate the Lubbock Field Office for the first time is something of a right-of-passage hazing ritual among system participants, obscured as it is behind trees and secreted away along the side of the building.  Hopefully the new location is a bit more conspicuous!


 
Copyright 2026, Stone Loughlin & Swanson, LLP

Workers’ compensation insurers just secured a major victory in the Texas air ambulance litigation.  On January 16, 2026, the State Office of Administrative Hearings (SOAH) issued decisions in the two major groups of air ambulance cases pending at SOAH.
 
In both cases, the Administrative Law Judges (ALJs) found that for the years in issue from 2011 – 2013, fair and reasonable reimbursement for the base rate ranges from 128.8% to 139.3% of Medicare and the mileage rate ranges from 119.1% to 128.8%.  The ALJs rejected the air ambulance providers’ proposed reimbursement that ranged up to more than 500% of Medicare for the average total rate. SOAH previously rejected the air ambulance providers’ argument that the federal Airline Deregulation Act (ADA) preempts the “fair and reasonable” reimbursement standard and therefore, they should be paid their full billed charges.
 
The decisions issued by SOAH in these cases are notable for the depth of their analysis, each over a hundred pages, which followed a four-day hearing in the first case and a three-day hearing in the second case, both with numerous expert and fact witnesses.  Texas Mutual, which has around a 40% market share, should be commended for doing the heavy lifting in these cases.
 
The air ambulance providers, which are private equity-owned, will likely appeal these latest SOAH decisions in their ongoing effort to extract more money from the Texas workers’ compensation system.
 
As of December 2025, there are 2,183 air ambulance disputes at DWC, dating back to at least 2014, and this number will continue to rise as the air ambulance providers file new disputes.

Copyright 2026, Stone Loughlin & Swanson, LLP


Thomas Howell  HIGHT JR.
 
Thomas Hight, Jr., an Administrative Law Judge at the Dallas field office of the Texas Department of Insurance, Division of Workers’ Compensation, passed away on August 19, 2025.

He was widely regarded as one of the Division’s most knowledgeable ALJs. More important than that, he was a kind and gentle soul. He will be greatly missed.

Copyright 2025, Stone Loughlin & Swanson, LLP