Workers’ Compensation Laws in Texas

If you’ve been injured at work in Texas, you might expect that your employer is required to carry workers’ compensation insurance—but that’s not always the case. Texas is the only state in the U.S. that does not require most private employers to carry workers’ comp coverage. This guide walks you through the key things to know about how the system works in Texas and what your options are if you’re hurt on the job.

Are Employers Required to Carry Workers’ Compensation in Texas?

No. In Texas, most private employers can opt out of the state’s workers’ compensation system. These employers are known as “non-subscribers.” If your employer does carry coverage, they are part of the Texas workers’ compensation system. If not, they must notify you in writing and report to the state that they are a non-subscriber.

Government agencies and many public employers are required to carry coverage, but private companies are not.

Who Is Covered?

If your employer subscribes to workers’ compensation, you are likely covered if you are:

A full-time or part-time employee
A seasonal or temporary worker

Independent contractors, domestic workers, and some agricultural workers may not be covered. If your employer is a non-subscriber, they may offer their own injury benefit plan—or none at all.

Injuries Covered by Workers’ Compensation

The Texas system covers a wide range of work-related injuries and illnesses, including:

Slips, falls, or repetitive strain injuries
Machinery or vehicle accidents
Occupational illnesses like chemical exposure
Aggravation of pre-existing conditions (if job-related)

Mental health conditions may also be covered if they result from a physical injury or work-related trauma.

Filing a Claim for Workers’ Comp in Texas

If your employer is a subscriber, follow these steps to file a claim:

Report the injury within 30 days to your employer.
File a formal claim (DWC Form-041) with the Texas Department of Insurance, Division of Workers’ Compensation (DWC) within one year.
Choose a doctor from your insurance network for treatment.
Keep documentation of your injury and medical care.

If your employer is a non-subscriber, different rules apply. You’ll need to file a claim under your employer’s benefit plan or possibly file a personal injury lawsuit if negligence was involved.

What Benefits Are Available?

If you qualify for workers’ compensation in Texas, you may receive:

Medical benefits: Pays for necessary treatment related to your injury or illness.
Income benefits:
- Temporary Income Benefits (TIBs): Paid if you lose income for more than 7 days.
- Impairment Income Benefits (IIBs): For lasting impairments.
- Supplemental Income Benefits (SIBs): Available after IIBs end if you have a serious disability.
- Lifetime Income Benefits (LIBs): For catastrophic injuries (e.g., total blindness, paralysis).
Death benefits: Paid to surviving dependents of a worker killed on the job.
Burial expenses: Provided to help cover funeral costs.

Wage Replacement Rules and Caps

The amount you receive is based on a percentage of your average weekly wage (AWW) prior to the injury. The benefits are capped and updated each year. Typically:

TIBs = 70-75% of AWW
IIBs and SIBs = 70% of AWW

There’s a 7-day waiting period for income benefits. If your disability lasts more than 14 days, you’ll be reimbursed for the first week.

Deadlines and Statute of Limitations

You must:

Report the injury to your employer within 30 days
File Form DWC-041 with the DWC within one year of the injury date or when you knew the injury was work-related

Missed deadlines may result in denial of your claim, so act promptly.

Appealing a Denied Claim

If your claim is denied, you have the right to:

Request a Benefit Review Conference (BRC)
Attend a Contested Case Hearing (CCH) if no agreement is reached
Appeal to the Appeals Panel
Take your case to state district court if necessary

An attorney can help you navigate the appeals process and fight for your benefits.

Rideshare Drivers and On-the-Job Vehicle Injuries

Texas rideshare drivers (e.g., Uber, Lyft) are generally considered independent contractors, which means they are not automatically covered by workers’ comp. However:

Some companies offer contingent accident insurance
You may have a claim under personal injury law or auto insurance policies
If you’re driving as part of a traditional job and your employer subscribes to workers’ comp, you may be covered

It’s important to understand your employment classification to know your rights.

Non-Subscriber Employer Risks

If your employer has opted out of the workers’ comp system:

You can sue them for workplace injuries
They cannot defend themselves with traditional defenses like “assumption of risk” or “co-worker negligence”
You must prove negligence in a personal injury lawsuit

Many injured workers in Texas seek legal counsel when dealing with non-subscriber claims.

Legal Resources and Support in Texas

You don’t have to face a workplace injury alone. Help is available through:

Texas Department of Insurance, Division of Workers’ Compensation (TDI-DWC)
Workers’ comp attorneys
Legal aid services
State bar referral services

These resources can help you understand your rights, pursue compensation, or take legal action if necessary.

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