State News : Texas

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Texas

STONE LOUGHLIN & SWANSON, LLP

  512-343-1385

Predicting the Future is Too Often a Swing-and-a-Miss - Connecting the Dots

  

This month DWC published a proposed rule amending Rule 130.102 concerning eligibility for Supplemental Income Benefits. But those of you hoping that DWC would put some teeth in the rule to require a SIBs applicant to prove that he made a genuine effort to find work will be sorely disappointed. It has about as many teeth as our snuff-dipping granny.

The impetus: The proposed revision appears to be in response to a decision from the Austin court of appeals in Texas Dep’t. of Ins., Div. Workers’ Comp. v. Accident Fund Ins. Co. of Americaet al., in which Accident Fund, represented by SLS, challenged the validity and applicability of parts of the rule. In that case, the insurance carriers argued that SIBs applicants who claim to be looking for work on their own (without going through a vocational rehabilitation program or requesting the assistance of the Texas Workforce Commission), cannot qualify for SIBs merely by making “work search contacts” (which can be emails or telephone calls) but, instead, they must submit actual job applications to prospective employers. A Travis County district court ruled for the carriers and enjoined DWC from awarding SIBs to applicants who make only work search contacts, and the court of appeals affirmed that injunction. As a result, DWC saw the need to revise its rule.

The new rule is an improvement: The new rule proposed by DWC would require a SIBs applicant to document a work search with job applications submitted. And it would clarify that “job application” means “a physical or electronic form or other document that is submitted to an employer . . .” so that an applicant could not claim that he submitted a job application if he merely called a business by telephone and asked if they are hiring.

But it could be so much better: The proposed rule would not require a SIBs applicant to provide the insurance carrier with a copy of the job application he submitted so that the carrier can verify that he submitted a complete application. It would not require a SIBs applicant to cooperate with a prospective employer that asks to set up an interview. And it would not require a SIBs applicant to apply only for jobs that the applicant has a reasonable chance of being able to perform given his education, skills, and functional limitations.
 
Why it matters: The current SIBs rule does not work. Too many claimants abuse it as a hand out, not a hand up. If DWC adopts the new rule as proposed, little, if anything, is likely to change. Those claimants will continue to “go through the motions” to obtain SIBs rather than making a genuine effort to find work. They will continue to submit job applications that are not completely filled out, they will continue to ignore any invitations to interview, and they will continue to apply for jobs that they have no earthly chance of being able to perform with the sole purpose of satisfying the requirements of the rule. And DWC will contribute to their dependency on SIBs by ordering carriers to pay them, quarter after quarter after quarter.

There’s still hope: But there’s still time for DWC to come through. This is just a proposed rule. DWC is requesting oral and written comments at a public hearing on the rule on October 1, 2025, and it will continue to accept written comments until October 6, 2025. SLS will be submitting written comments and we urge other system participants to do the same. Together, let’s urge DWC to revise the rule so that it supports claimants who demonstrate that they are truly trying to find work -- but not those who don’t.

Copyright 2025, Stone Loughlin & Swanson, LLP