HB2488

Regular Session

Relating to conducting certain contested case hearings under the Texas workers' compensation system by remote communication.

ModeratePlan for compliance

Low Cost

Effective:2025-06-20

Enforcing Agencies

Texas Department of Insurance (TDI) • Division of Workers' Compensation (DWC)

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: June 20, 2025
Compliance Deadline: Immediate. The new provisions apply strictly to contested case hearings requested on or after June 20, 2025. Hearings requested prior to this date remain governed by former law (defaulting to in-person unless specific emergency orders apply).
Agency Rulemaking: The Commissioner is required to adopt rules defining "good cause" and technical standards "as soon as practicable." We are currently in a regulatory gray zone where the statute permits remote hearings, but the specific procedural rules are not yet published.

Immediate Action Plan

Audit Litigation Docket: Identify which open claims have hearing requests filed on or after June 20, 2025.
Issue Counsel Directives: Instruct your defense counsel on your company's default preference (Remote vs. In-Person) to ensure consistency across claims.
Digitize Files: Ensure your Third-Party Administrator (TPA) has fully digitized all claim files for immediate electronic sharing.
Monitor Rulemaking: Prepare to submit comments when the DWC publishes proposed rules defining "good cause" later this year.

Operational Changes Required

Contracts

TPA & Outside Counsel Agreements: Review engagement letters immediately.
Fee Structures: Adjust billing guidelines to ensure you are not paying for travel time to hearings that are now virtual.
Competency Clauses: Require that assigned defense counsel possess the technical proficiency to cross-examine witnesses and present digital evidence effectively via video.

Hiring/Training

Witness Preparation: HR representatives and supervisors who may testify must be trained on professional videoconferencing etiquette.
Tech Readiness: "Technical difficulties" are now a strategic liability. Ensure key personnel have access to high-bandwidth connections and DWC-compliant platforms (likely Zoom or Teams) to prevent credibility issues during testimony.

Reporting & Record-Keeping

Digital Evidence: Implement protocols for the high-quality digitization of all hearing exhibits. Physical binders are obsolete for these proceedings.
Objection Logs: If the DWC initiates a remote hearing based on "Good Cause" and you prefer in-person, you must formally document your objection in the case file to preserve the issue for potential appeal.

Fees & Costs

Legal Spend: Anticipate a reduction in defense costs related to travel.
No New State Fees: The bill does not impose new filing fees.

Strategic Ambiguities & Considerations

Definition of "Good Cause": The statute allows the DWC to force a remote hearing upon a finding of "good cause," even over your objection. The specific criteria for this finding are currently undefined, leaving it to the discretion of individual arbitrators until rules are finalized.
Witness Sequestration: The statute does not specify how the DWC will prevent witness coaching (e.g., someone off-camera feeding answers) during remote testimony.
Technical Failure Protocols: It is currently unclear whether a hearing will be rescheduled or if a party is penalized if their internet connection fails during critical testimony.

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsLabor Labor--workers' Compensation Videoconferencing Workers' Compensation, Commissioner of

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

H.B. 2488

By: Bell, Keith

Trade, Workforce & Economic Development

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The division of workers' compensation of the Texas Department of Insurance (TDI) oversees dispute resolution for workers' compensation claims, which may include an informal meeting such as a benefit review conference, a formal contested case hearing, or an appeal to the division. According to TDI's biennial report to the 89th Legislature, the division holds about 4,500 contested case hearings annually and allows parties and witnesses to appear by telephone if good cause exists. The report further states that due to the impact of the COVID-19 pandemic, the division successfully held both benefit review conferences and contested case hearings by videoconference or telephone for a period, leading to the passage of H.B. 1752, 87th Legislature, Regular Session, which now allows the division to conduct benefit review conferences by videoconference unless good cause exists to hold them in person. H.B. 2488 seeks to modernize and streamline the dispute resolution process by authorizing the division to hold contested case hearings virtually using existing videoconference technology.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly granted to the commissioner of workers' compensation in SECTION 1 of this bill.

ANALYSIS

H.B. 2488 amends the Labor Code to authorize the division of workers' compensation of the Texas Department of Insurance (TDI) to conduct a contested case hearing under the Texas Workers' Compensation Act by videoconference on a determination by the division that good cause exists for conducting the hearing in that manner or on the mutual agreement of the parties. The bill requires the commissioner of workers' compensation, as soon as practicable after the bill's effective date, to adopt rules as necessary to implement the bill's provisions.

H.B. 2488 applies to a contested case hearing requested on or after the bill's effective date. A contested case hearing requested before the bill's effective date is governed by the law in effect on the date the contested case hearing was requested, and the former law is continued in effect for that purpose.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2025.

House Authors

Rep. Keith BellRepublican · Primary Author

Joint Authors

Coauthors (2)

Senate Sponsor

Sen. Carol AlvaradoDemocrat · Primary Sponsor

Bill Text(with markup)

H.B. No. 2488

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to conducting certain contested case hearings under the
	Texas workers' compensation system by remote communication.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subchapter A, Chapter 410, Labor Code, is
	amended by adding Section 410.0055 to read as follows:
	Sec. 410.0055. CONDUCTING CERTAIN CONTESTED CASE HEARINGS
	BY REMOTE COMMUNICATION. (a) Notwithstanding Section 410.005(a),
	the division may conduct a contested case hearing by
	videoconference:
	(1) on a determination by the division that good cause
	exists for conducting the hearing in that manner; or
	(2) on the mutual agreement of the parties.
	(b) The commissioner shall adopt rules as necessary to
	implement this section.
	SECTION 2. As soon as practicable after the effective date
	of this Act, the commissioner of workers' compensation shall adopt
	rules to implement Section 410.0055, Labor Code, as added by this
	Act.
	SECTION 3. Section 410.0055, Labor Code, as added by this
	Act, applies to a contested case hearing requested on or after the
	effective date of this Act. A contested case hearing requested
	before the effective date of this Act is governed by the law in
	effect on the date the contested case hearing was requested, and the
	former law is continued in effect for that purpose.
	SECTION 4. This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution. If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


March 22, 2025

TO:	Honorable Angie Chen Button, Chair, House Committee on Trade, Workforce & Economic Development

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	HB2488 by Bell, Keith (Relating to conducting certain contested case hearings under the Texas workers' compensation system by remote communication.), As Introduced

No significant fiscal implication to the State is anticipated.

It is assumed that any costs associated with the bill could be absorbed using existing resources.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

454 Department of Insurance

LBB Staff:

JMc, RStu, BFa

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Frequently Asked Questions

Common questions about HB2488

What does Texas HB2488 do?

Effective June 20, 2025, the Texas Division of Workers' Compensation (DWC) has permanent statutory authority to conduct contested case hearings via videoconference, replacing temporary pandemic measures. This change affects all Texas employers ("Subscribers") and carriers, requiring an immediate shift in litigation strategy to accommodate remote evidence presentation and witness testimony. Implementation Timeline Effective Date: June 20, 2025 Compliance Deadline: Immediate.

Who authored HB2488?

HB2488 was authored by Texas Representative Keith Bell during the Regular Session.

When was HB2488 signed into law?

HB2488 was signed into law by Governor Greg Abbott on June 20, 2025.

Which agencies enforce HB2488?

HB2488 is enforced by Texas Department of Insurance (TDI) and Division of Workers' Compensation (DWC).

How urgent is compliance with HB2488?

The compliance urgency for HB2488 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of HB2488?

The cost impact of HB2488 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does HB2488 address?

HB2488 addresses topics including labor, labor--workers' compensation, videoconferencing and workers' compensation, commissioner of.

Legislative data provided by LegiScanLast updated: November 25, 2025

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