Why Is Texas the Only State That Doesn’t Guarantee Workers’ Compensation?

Workers’ compensation refers to the business insurance that provides benefits to employees who were harmed while on the job, including medical care and wage replacement. If the employee accepts the worker compensation benefits, they waive their right to sue the company for damages.

In every state except for Texas, most companies are required to participate in some form of workers’ compensation program. Employers in the Lone Star State can choose to provide workers’ compensation or not, with a few exceptions. For instance, if the employer contracts with the government, the employer must provide workers’ compensation. This option to forego workers’ comp has been the law in the state since 1913.

What Does This Mean for Employers and Employees?

If you live or work in Texas, what does this mean for you? It is essential to check with your employer to see if they provide workers’ compensation. If they provide do, they must inform their employees and post a workplace notice with the name of their insurance carrier. If employers choose not to provide workers’ compensation insurance, they are called non-subscribers. To legally be a non-subscriber, the company must file a notice annually with the Texas Department of Insurance and notify all employees of this status.

Injured workers in a non-subscriber environment will have to consult with a work injury attorney if they wish to file suit against their employer.

Current Discourse: Who Supports This System and Who Doesn’t?

There is much debate, both within Texas and outside of it, as to whether this system works or not. Supporters argue that the policy gives flexibility to employers, giving them a choice to avoid high insurance premiums and choose a better plan that avoids the bureaucratic hassle that comes with government programs. For some employers that do not see many injuries, they enjoy being able to avoid these costly premiums. On the opposite end, however, many worker advocates argue that, while this policy benefits employers, it hurts employees because they are often left with minimal coverage or none at all. For a state like Texas that has had a higher-than-average worker fatality rate (often due to dangerous offshore, maritime, or oil rig jobs), that can be devastating.

Texas is known for being a good state for businesses and prides itself on having fewer government regulations than other states. But because the system does not seem to be changing anytime soon, local workers need to understand that workers’ compensation insurance might not be guaranteed.

Call Schechter, Shaffer & Harris if You Do Not Have Access to Workers’ Compensation in Texas

If you were injured at work and are wondering what steps you can take, contact our office to learn more about how you can file a claim when your employer is a non-subscriber. We offer free consultations and can advise you of the best path for securing the damages you need.