Texas Shifts to New Workers’ Comp Surcharge System
- Texas implemented a major overhaul of its workers’ compensation funding system on January 1, 2026, replacing the long‑standing maintenance tax with a new surcharge model.
- The change significantly increases the maximum assessment rate, giving regulators more stable revenue to oversee claims handling, fraud enforcement, and insurer compliance.
- State officials say the update modernizes a funding structure that had become too limited for current system demands.
- The new framework is expected to strengthen oversight across Texas’ workers’ comp landscape.
Maryland Court Rejects Punitive Damages in Workers’ Comp Payroll Underreporting Dispute
- On January 6, 2026, the Appellate Court of Maryland ruled that Chesapeake Employers’ Insurance Company is not entitled to punitive damages despite allegations of significant workers’ comp payroll underreporting.
- Although an audit revealed discrepancies in reported wages, the court determined the carrier failed to provide clear evidence of “actual malice.”
- This decision clarifies the high legal threshold for insurers seeking fraud penalties.
- The court ultimately affirmed the lower court’s ruling.