Tex. Occ. Code Ch. 2402 (HB 100, 2017) preempted all local TNC ordinances and created the most TNC-friendly framework in the country — and § 2402.114 statutorily classifies drivers as independent contractors.
Texas's 2017 HB 100, codified at Tex. Occ. Code Chapter 2402, preempted local TNC ordinances and created a single statewide framework that is among the most TNC-friendly in the country. Before HB 100, Austin and Houston had passed restrictive local rules that pushed Uber and Lyft out of those cities; HB 100 reversed that overnight. The four-period insurance tier framework under § 2402.151 sets a $1,000,000 Period 2/3 floor, and § 2402.114 expressly classifies TNC drivers as independent contractors with no Texas equivalent to California's AB 5.
Texas's Transportation Network Companies Act is codified at Tex. Occ. Code Chapter 2402 and was enacted as HB 100 in 2017. Before HB 100, several Texas cities — Austin and Houston in particular — had passed restrictive local TNC ordinances that drove Uber and Lyft out of those markets. HB 100 preempted all local rules and established a single statewide framework administered by the Texas Department of Licensing and Regulation. The result is one of the most TNC-friendly regulatory environments in the country.
Tex. Occ. Code § 2402.151 codifies the four-period TNC insurance tier framework. Period 0 (app off): driver's personal auto policy applies. Period 1 (app on, no ride matched): the TNC must provide at least $50,000 per person / $100,000 per accident bodily injury and $25,000 property damage. Periods 2 and 3 (en route to pickup or passenger aboard): the TNC must provide at least $1,000,000 in coverage. Uber and Lyft both maintain the $1M Period 2/3 floor as a national corporate standard. The single most important early evidence in any Texas rideshare case is trip data screenshots from the rider's app — they establish which period the driver was in.
Tex. Occ. Code § 2402.114 expressly classifies TNC drivers as independent contractors for all state-law purposes — workers' compensation, unemployment insurance, wage and hour law — provided the driver meets the statutory criteria. Texas does not have a state-law equivalent to California's AB 5 / Dynamex ABC test, and there is no Texas analog to Prop 22. The statutory classification is more protective of TNCs than the equivalent rules in California or Pennsylvania, which means direct vicarious liability claims against Uber and Lyft are even harder to plead in Texas. The practical recovery source is the TNC's $1,000,000 commercial insurance policy responding to the driver's negligence during Periods 2 and 3.
Texas applies modified comparative fault with a 51% bar under Tex. Civ. Prac. & Rem. Code § 33.001. If a passenger, pedestrian, or other driver is found 51% or more at fault for the underlying crash, recovery is barred entirely. The personal injury statute of limitations is two years under Tex. Civ. Prac. & Rem. Code § 16.003. Houston, Dallas, Austin, San Antonio, and Fort Worth all generate heavy rideshare crash volume, particularly around airport pickup zones at IAH, DFW, AUS, SAT, and DAL. Some Texas cities maintain their own short notice-of-claim deadlines under municipal charters — Houston's 90-day rule applies even to private rideshare crashes when a city employee or vehicle is involved.
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The legal information on this page is for general educational purposes only and is not legal advice. Laws change, and every case is different. Always consult with a licensed attorney in your state to verify the current law and how it applies to your specific situation.
Tex. Occ. Code § 2402.151 sets the four-period framework. Period 0 (app off) — the driver's personal auto policy applies. Period 1 (app on, no match) — the TNC must provide at least $50,000 per person / $100,000 per accident bodily injury and $25,000 property damage. Periods 2 and 3 (en route to pickup or passenger aboard) — the TNC must provide at least $1,000,000 in coverage. Uber and Lyft both maintain the $1M Period 2/3 floor as a national corporate standard. Trip data screenshots from the rider's Uber or Lyft app establish which period applied — that is the single most important early evidence.
The driver is the primary defendant. Tex. Occ. Code § 2402.114 expressly classifies TNC drivers as independent contractors for all state-law purposes, with no Texas equivalent to California's AB 5 or Prop 22 framework. Texas courts enforce the statutory classification consistently, which means direct vicarious liability claims against Uber or Lyft as corporate employers are even harder to plead in Texas than in California or Pennsylvania. The practical recovery source is the TNC's $1,000,000 commercial insurance policy responding to the driver's negligence during Periods 2 and 3.
Before HB 100 in 2017, several Texas cities — Austin and Houston in particular — had passed restrictive local Uber and Lyft ordinances, including fingerprint-based background check requirements. Uber and Lyft pulled out of those cities in protest. HB 100, enacted by the Texas Legislature in 2017, preempted all local TNC ordinances and established a single statewide framework administered by the Texas Department of Licensing and Regulation under Tex. Occ. Code Chapter 2402. The TNCs returned to the affected cities. The practical effect for injury cases is that there is now one uniform regulatory framework statewide, with no local variation in driver standards, vehicle requirements, or insurance floors.
Only if you were 50% or less at fault. Texas follows modified comparative fault with a 51% bar under Tex. Civ. Prac. & Rem. Code § 33.001. At 50% or less, you recover your damages reduced by your percentage of fault. At 51% or more, you recover nothing — the cliff is hard. This rule applies to passengers, pedestrians, other drivers, and the rideshare driver alike. Insurance adjusters in Texas rideshare cases routinely push to assign more than 50% fault to the injured party because of the cliff. The early documentation fight — trip data, dashcam footage, witness statements — is critical.
All legal information on this page is sourced from primary government statutes. Last verified 2026-04-07.
Tex. Occ. Code Ch. 2402
Texas Transportation Network Companies Act (HB 100, 2017)
Tex. Occ. Code § 2402.151
TNC Insurance Tier Requirements
Tex. Occ. Code § 2402.114
TNC Driver Independent Contractor Classification
Tex. Civ. Prac. & Rem. Code § 16.003
2-Year Statute of Limitations (Personal Injury)
Tex. Civ. Prac. & Rem. Code § 33.001
Modified Comparative Fault (51% Bar)
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