Workers Compensation in Texas
State-specific overview · Employment Law
Texas makes workers' compensation optional for most private employers, creating a unique non-subscriber system.
How Texas treats Workers Compensation
Unlike most states, Texas does not require private employers to carry workers' compensation insurance. Employers who opt out (non-subscribers) lose immunity from employee lawsuits but avoid insurance costs. Employers who do carry coverage (subscribers) receive liability protection. Public employers and certain industries must participate in the state system.
The general definition of Workers Compensation
Insurance that provides medical benefits and wage replacement to employees injured during work.
Workers compensation is a form of insurance that employers are required to carry to protect employees who are injured or become ill as a result of their job. When an employee is hurt at work, workers compensation covers medical expenses, rehabilitation costs, and a portion of lost wages while the employee recovers. In exchange, the employee generally gives up the right to sue the employer for the injury. The system is designed to provide quick, predictable benefits without the need for a lawsuit. Benefits vary by state and depend on the severity of the injury.
Read the full Workers Compensation entry →This page is a plain-English reference and is not legal advice. State laws change frequently. For specific situations consult a licensed attorney in Texas.