Workers Compensation Texas

Texas Workers Compensation at a Glance

• Workers’ Compensation Requirements in Texas

  Texas, unlike other states, does not require employers to carry Workers’ Compensation insurance in most cases. However, most employers in the state carry Workers' Compensation coverage for their employees because it helps to cover expenses for injured workers as well as protect businesses against lawsuits due to work injuries.

• Texas Workers’ Compensation exceptions

  If your business contracts with Texas governmental agencies, you're required to provide Workers' Compensation coverage for your employees working on that project. Additionally, some contractors may require subcontractors or independent contractors to carry Workers’ Compensation coverage.

• Inform your employees about your coverage status

  Texas employers who have chosen not to carry Workers' Compensation insurance must inform the state, employees, and new hires that the business does not carry Workers' Compensation coverage. Workers then retain the right to sue the employer for a broader range of damages due to work-related injuries. For this reason, most employers choose to carry coverage.

• Avoid Workers’ Compensation fines in Texas

  While Workers' Compensation coverage is not required in most cases for Texas employers, the state does require that employers notify the state each year of their election not to carry Workers' Compensation coverage. The employer may be assessed a penalty of up to $500 each day for non-compliance with this notification requirement.