Rod Bordelon, the Commissioner of Texas’ Division of Workers’ Compensation, abruptly resigned from his position last week, possibly due to criticism that his division was too cozy with the insurers it was supposed to be regulating.
Bordelon’s resignation will officially take effect on August 1. In the meantime, both workers’ advocates and insurers alike have been buzzing about his reasons and how it could affect his division. Lawyers who represented the injured in disputes with insurance companies had claimed that Bordelon’s sympathies were tilted toward the insurers. Meanwhile, the insurers claimed that Bordelon treated them fairly.
Prior to the resignation, state lawmakers were in the process of studying the way Texas treated those who were injured or killed while working. Texas is the only state in the country that does not require all private employers to carry workers’ compensation insurance or a private equivalent. Although two-thirds of employers still carry workers’ compensation insurance, that leaves a substantial number of businesses that do not. With regard to the injured workers who are covered, the Division of Workers’ Compensation acts as a court-like system in order to determine whether injured workers are entitled to benefits. Bordelon recently acknowledged to members of the Business and Industry Committee that these injured workers lost a sizeable percentage of disputes in front of his agency.