Texas Laws on Workers Comp and Nonsubscribers

Our Austin Injury Attorneys Explain Workers Compensation Laws

Each state regulates its own workers compensation laws, and Texas is unique in that it does not require most private employers to carry workers compensation. Though many companies choose to subscribe to workers comp in Texas, a number of large firms opt out of the program. It is important for workers to find out if their employers subscribe to workers compensation in Texas and how this may affect them if they are injured on the job.

Why do Texas Employers Choose Not to Have Workers’ Compensation?

Under workers compensation, if a worker is hurt at work, insurance can cover the employee’s medical expenses and provide income benefits to an employee who is unable to work due to injury. This also limits the employer’s liability in work-related injuries and prevents employees from suing their employers.

Being a non-subscriber may force employers to pay additional expenses, such as pain and suffering or punitive damages if their workers develop injuries or illnesses. The employer may lose the right to certain defenses, such as claiming that the negligence of the injured employee or another employee caused the accident. Those employers who are non-subscribers to workers comp are found at all negligent may be held financially liable for medical expenses, lost wages, pain and suffering and other damages.

Some employers choose not to subscribe to workers compensation because there are less expensive alternatives. These include accident and health policies, employer indemnification agreements and disability policies. Though these alternatives may provide benefits to employees, these are not viable substitutes for workers compensation insurance. Many of these alternatives usually provide limited benefits for employees for medical expenses and disability payments.

What to Do if Your Employer Does Not Have Workers Comp Insurance

Because Texas does not recognize alternative policies as legitimate substitutes for workers compensation, injured employees may sue nonsubscriber employers. In fact, in many situations, employees may benefit more by suing their employers and collecting substantial benefits for their injuries.

It is also important to note that whether or not an employer carries workers compensation, if a third party is at least partially at fault for an injury, the employee still has the right to file a third party claim. A third party is a defective product manufacturer or an individual not directly employed by the company of the injured worker. Employees may sue third parties that cause injury to provide more supplement workers compensation or alternative policies.

Finding Solutions to Workers Compensation Issues

If your workers compensation claim was denied, your employer does not carry workers comp insurance or if you suffered an injury caused by a third party, The Law Offices of Aaron Allison can provide the legal support you need. Our Austin injury lawyer is among the few lawyers still representing Texans in workers comp cases. Speak to our Austin workers compensation attorney today to find out how we can help you.