On-the-job injuries are an unfortunate but unavoidable risk employees face when earning a living in Texas. In most states, employees who are hurt while performing their job duties can find some financial relief for the cost of their injuries through workers’ compensation. However, this is not necessarily the case for employees in the Lone Star State.
Workers employed by a “non-subscriber” company in Texas are often alarmed to realize they don’t have access to the standard financial support available through workers’ comp. However, this doesn’t mean that non-subscriber employees have no options for financial assistance after a workplace injury.
This blog post will explain what employees need to know about non-subscriber workers’ compensation in Texas. We’ll explain Texas’s unique workers’ comp laws, employees’ legal rights and options, and how to seek compensation after a non-subscriber work injury.
What Is a Non-Subscriber Employer in Texas?
A non-subscriber employer is a company that has opted out of the Texas workers’ compensation program. Texas is the only state in the U.S. where employers are not required to carry workers’ compensation insurance in case of on-the-job injuries.
Only those employers connected to the state government must provide workers’ compensation in Texas. These employers include
- Law enforcement entities,
- Public schools and universities,
- Government agencies,
- Some healthcare institutions, and
- Contractors for state-funded construction projects.
By contrast, all private companies can enroll in the traditional, state-regulated workers’ comp program or find alternative ways of providing financial support to injured employees.
How to Know If You Work for a Non-Subscriber Employer
Many large and well-known companies have opted out of the state’s workers’ compensation program. Some notable non-subscriber employers include:
- Amazon,
- HEB,
- Sam’s Club,
- Hobby Lobby,
- Kohl’s,
- Walmart,
- Target,
- Ross,
- Home Depot,
- Costco
- Macy’s, and
- Best Buy.
Texas law requires non-subscriber employers to inform new employees that traditional workers’ compensation doesn’t cover them. However, if you’re unsure of your company’s status, you can verify whether they subscribe to coverage through the Texas Department of Insurance.
What Happens If I’m Injured While Working for a Non-Subscriber Employer?
You’re not left entirely unprotected if you’re hurt while working for a non-subscriber. Let’s explore some potential ways employees can seek financial relief after injuries in Texas non-subscriber workplaces.
Non-Subscriber Employer Private Insurance
Companies that opt out of workers’ comp may carry private insurance policies offering coverage for work-related accidents, disability, and even death. These policies may be from separate insurance carriers and come with their eligibility requirements, terms, conditions, and limitations.
In many cases, the financial benefits they provide are more limited than those available through workers’ compensation. For example, a private insurer’s temporary disability policy may offer a shorter period of weekly wage-replacement payments than is standard for workers’ comp insurance.
Employees may also need to file multiple claims with separate insurers to get all their benefits. For example, one carrier may only cover medical expenses related to an injury, while another only provides temporary disability support.
Non-Subscriber Employer Self Insurance
A non-subscriber employer can also be “self-insured,” meaning the company internally oversees claims for employee injuries and pays applicable damages itself. This method gives companies some advantages.
For one, they have total control over an employee’s potential compensation. The company can choose to offer damages for only certain types of workplace injuries or only cover medical care from specific healthcare providers. Many self-insured non-subscribers also have caps on the maximum compensation an employee can receive after an injury.
Non-Subscriber Personal Injury Claim
When a company chooses to be a non-subscriber, it also loses some important protections from legal liability included in workers’ compensation. Traditional workers’ compensation is a no-fault system. Injured employees receive financial support but give up their right to sue their employer, even if the company was partly responsible for their harm.
Non-subscriber companies don’t have the same legal immunity. If a company’s negligence caused an injury, an employee has the right to sue them in Texas court and seek compensation for a range of potential damages, including those not offered by workers’ compensation.
Suing for Non-Subscriber Workers’ Compensation in Texas
In order to bring a non-subscriber personal injury lawsuit, an employee must be able to prove that their workplace injury was the result of an employer’s negligence.
Negligence is a legal term for when someone’s mistakes or carelessness cause preventable harm to someone else. To prove a company’s negligence, injured employees must demonstrate:
- Duty of care—the employer had a duty to provide employees with a reasonably safe work environment;
- Breach of duty—the employer violated their duty by failing to take reasonable actions to keep employees safe;
- Causation—the employee suffered harm because of the employer’s actions; and
- Damages—the employee suffered injuries or loss due to the employer’s breach.
Proving these elements requires compelling evidence and a strong argument illustrating the connection between the employer’s oversights and an injury.
Fortunately for employees, Texas law limits how non-subscriber companies can defend themselves from liability in workplace injury lawsuits. Employers who willingly chose to opt out of workers’ comp can’t undercut your claim by arguing:
- You are partly responsible for your injury,
- You accepted the risks of injury by taking the job, or
- Another employee caused your injury.
These rules give employees a helpful advantage when proving negligence that’s generally unavailable in other personal injury claims.
What Compensation Can You Recover in a Non-Subscriber Work Injury Claim?
Non-subscriber personal injury claims allow employees to potentially recover compensation for numerous physical, emotional, and financial losses from a workplace accident. Employees with successful claims may be able to recover compensation for:
- Current medical expenses—hospital bills, doctors’ visits, surgeries, and other costs of treating the injury;
- Future medical expenses—estimated future costs of treating the injury, such as physical therapy, medication, assistive devices, and home alterations;
- Lost income—wages and employment benefits missed while recovering from the injury;
- Reduced earning capacity—lost future wages due to permanent or debilitating injuries; and
- Pain and suffering—emotional and psychological challenges caused by the injury.
Depending on the situation, employees with non-subscriber personal injury claims may be able to recover significantly more damages through a lawsuit than from workers’ compensation or an employer’s private insurance option.
This is because personal injury suits often include compensation for intangible noneconomic losses, such as pain and suffering, emotional distress, and disfigurement. However, the type of damages you can recover can vary depending on the circumstances of your case, particularly the severity of your injuries and your long-term chances of full recovery.
How to File a Non-Subscriber Workers’ Compensation Claim
If you suspect your non-subscriber employer’s negligence played a part in your workplace injury, here are the steps to build a compensation claim.
Seek Medical Help
It’s essential to get qualified medical attention immediately after a workplace injury. Don’t downplay your harm or put off seeing a doctor, even if your injury seems minor. A thorough examination from a physician is crucial to protect your well-being and document the extent of your injury for your claim.
Report Your Injury
Inform your employer about your injury as soon as possible. Even if other employees witnessed the incident, ensure you make an official report yourself. Texas law requires non-subscriber companies to report all workplace injuries to the state.
Collect Evidence
Having thorough documentation of the details of the incident is essential for your claim. If safe to do so, take pictures or videos of the site of the injury and any visible harm you suffered. Keep a regular journal after the incident, noting how the injury impacts your daily life, mental health, and emotional well-being.
Contact a Lawyer
The support of a skilled legal advocate is vital to a successful non-subscriber injury claim. An experienced work injury lawyer will evaluate the situation and determine whether you have grounds for a claim. Then, they will develop a case strategy, gather evidence, and interview witnesses to support your claim.
Negotiation or Lawsuit
Many non-subscriber personal injury claims resolve through out-of-court settlements. However, your attorney may prepare to take your case to trial if your employer won’t agree to fair settlement terms. Either in court or settlement discussions, your representative will use their legal knowledge and insights to negotiate for you to receive the maximum compensation available.
How Much Does It Cost to Hire a Work Injury Lawyer?
Many work injury attorneys, like Kolodny Law Firm operate based on contingency fees. This means injured clients don’t pay their legal representatives upfront. Instead, our law firm only charges a fee if we can win your case for you. Then, our fee is generally calculated as a percentage of your settlement or verdict.
Dedicated Advocates Fighting for Injured Employees
At Kolodny Law Firm, we understand the pain and anxiety of managing a workplace injury under a non-subscriber employer. However, employees often have more options than they assume.
If you’ve been hurt while working for a non-subscriber employer, contact Kolodny Law Firm to schedule a free consultation with an attorney. Our representatives are seasoned advocates who know the ins and outs of Texas personal injury law.
With our aggressive litigation strategy and strong research skills, we’re prepared to fight for you to recover the compensation you deserve for your employer’s negligence. Call our office today to learn more about how we can help you.
Resources:
Texas Labor Code § 406.002, link.
Texas Labor Code § 504, link.
Workers’ compensation non-subscriber employer information, Texas Open Data Portal, link.
Alan Kolodny is committed to representing injured clients in Texas and throughout the United States. Alan earned his B.A. from Rice University and his J.D. from Southern Methodist University.
He focuses his practice on representing plaintiffs in personal injury cases involving the following matters: maritime and offshore accidents, including those under the Jones Act; automobile and 18-wheeler truck accidents; and industrial site accidents, work-related accidents, and claims for injured railroad workers under the Federal Employers’ Liability Act.
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