What Is the Average Amazon WC Settlement in Texas?

Amazon is frequently in the news, but often not for good reason. The massive e-commerce company is notorious for treating workers poorly. In 2022, people who worked in Amazon warehouses and distribution centers were injured twice as often as those who worked in non-Amazon warehouses.

In Texas, companies can opt out of providing workers’ compensation coverage. Amazon has chosen to opt out. That means, in Texas, Amazon workers’ comp does not exist, Amazon workers’ compensation settlements do not exist, and there is no average Amazon workers’ compensation settlement amount. However, if you are injured on the job while working for Amazon, you have a remedy: a personal injury lawsuit. 

At Armstrong Lee & Baker LLP, our lawyers know personal injury and workers’ compensation law. We can help you take an e-commerce industry giant to task for your injury.

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Workers’ Compensation Non-Subscribers

In Texas, employers that choose not to provide their employees with workers’ compensation are known as “non-subscribers.”

Non-subscribers must clearly inform their employees that they do not offer coverage. This includes posting

 notices at “conspicuous locations” at the place of business, specifically including the personnel office.

The notice must be provided in large print, in English, Spanish, and any other language commonly spoken by employees. In addition, the notice must be provided to employees when they are hired.

The employer must also notify the Texas Department of Insurance that it does not provide workers’ comp. Amazon Services Inc., Amazon’s official business name, appears on the Texas Department of Insurance’s publically accessible list of non-subscribers.

Suing Amazon for Personal Injury

To recover for injuries suffered in the course of working for a non-subscriber, you must prove your employer negligently caused your injury. Thankfully, the law allowing employers to opt out of coverage makes this easier than a typical negligence claim. The employer cannot prevent you from recovering by claiming:

• You contributed to or partly caused your own injury;
• You agreed to the risk of injury by working the job; or
• Another employee negligently caused the injury.

Nonetheless, the employer can argue that you intended to injure yourself or were intoxicated to avoid liability.

What You Can Recover

When you sue for negligence, you primarily recover damages based on how severe your injury is. You can recover economic and no-neconomic damages, both designed to compensate you for the harm you suffered. Economic damages include tangible harm, like medical bills or lost wages resulting from the injury. Noneconomic damages include less tangible harm, like:

• Physical pain and suffering, 
• Mental or emotional pain or anguish,
• Loss of consortium, 
• Disfigurement, 
• Physical impairment, 
• Loss of companionship and society, 
• Inconvenience, 
• Loss of enjoyment of life, and
• Injury to reputation.

In some circumstances, you can also recover exemplary damages, also known as punitive damages. These damages are designed as a penalty for harm caused by someone’s:

• Fraud,
• Malice, or
• Gross negligence.

Exemplary damages may not exceed the greater of (1) twice your economic damages plus your noneconomic damages up to $750,000 or (2) $200,000. Although exemplary damages are more difficult to obtain, they can result in a much larger recovery. 

Since Amazon’s work injury policy often appears to be to walk off even the most serious injuries, depending on the circumstances, exemplary damages may be a very real possibility in claims against Amazon. 

Workers’ compensation pay is much more limited than what you can recover when you sue for negligence. That means, in Texas, you may be able to recover more than is typical of Amazon workers’ compensation settlements in other states.

A Difficult Process

The workers’ compensation process can present many challenges for Amazon employees, particularly when dealing with the size and complexity of a company like Amazon. While Amazon does provide workers’ compensation insurance, managing the claims process can be especially tricky. The company relies on a third-party administrator, Sedgwick, to handle most of its workers’ comp cases. Nevertheless, Sedgwick has developed a reputation for delaying or denying claims, making the process even more frustrating. As a result, injured workers are often left not only trying to recover physically but also facing the hurdles of a bureaucratic system that can make obtaining benefits more difficult.

In Texas, there are strict timelines and procedural rules that must be followed to get benefits. Not following these timelines, failing to report your injury in time, or missing paperwork could result in denial or delays in receiving compensation. This is why many Amazon employees in Houston struggle to navigate this process without the assistance of a skilled workers’ compensation attorney.

Eligibility

To qualify for workers’ compensation through Amazon, you must be an employee and not an independent contractor. Only employees are eligible for workers’ compensation benefits, which means that independent contractors do not qualify for these benefits. Amazon often classifies delivery drivers as independent contractors, particularly those who work through Amazon’s third-party delivery service partners or the Amazon Flex program. These individuals use their own vehicles and set their own schedules, which technically makes them independent contractors under the law.

As independent contractors, these workers are not covered by Amazon’s workers’ compensation insurance. If they are injured while delivering packages, they would not be eligible for workers’ comp benefits from Amazon. Still, if a delivery driver is misclassified as an independent contractor, they may have grounds to pursue a legal claim to access workers’ compensation benefits. For regular employees who work in Amazon’s warehouses or fulfillment centers, workers’ compensation coverage is provided, as required by Texas law.

Proving Eligibility

Once your employment status is confirmed, the next step is demonstrating that your injury occurred while performing work-related tasks. You must show that your injury or illness was caused by job-related activities. This could involve anything from heavy lifting, repetitive motions like scanning items, or accidents such as a fall in the warehouse.

To prove that your injury is work-related, it’s important to gather as much documentation as possible. This can include:

• Medical records from doctors treating your injury.
• Witness statements from co-workers who saw the accident happen.
• Surveillance footage, as Amazon warehouses are often under constant video surveillance.
• Photographic evidence of the injury or the scene where it occurred.

Without proper documentation, Amazon or Sedgwick may try to argue that the injury did not happen at work or that it was pre-existing. Having strong evidence will be crucial in making sure your claim is approved.

Reporting

One of the most important steps in the workers’ compensation process is reporting your injury. If you are injured at work, you should inform your supervisor or manager immediately. Texas law requires employees to report workplace injuries within 30 days. However, Amazon has its own internal policies, and it’s advisable to report your injury as soon as possible to avoid any potential issues.

After reporting your injury, you may be required to fill out an accident report or injury form. This document should include as much detail as possible, including the date, time, and location of the accident, as well as any witnesses who were present. Failing to report the injury in a timely manner could lead to denial of your claim, so prompt reporting is essential.

Additionally, if your injury develops over time—such as a repetitive strain injury like carpal tunnel syndrome—it is critical to report the symptoms as soon as you become aware of them. Waiting too long could complicate the claim process.

Benefits

When you qualify for workers’ compensation, benefits may include medical expenses, temporary or permanent disability payments, death benefits, and educational or skills retraining.

• Medical Expenses: Workers’ compensation covers all necessary medical treatment related to the injury, including hospital visits, surgeries, physical therapy, and prescriptions.
• Temporary Disability Payments: If your injury temporarily prevents you from working, workers’ compensation will cover a portion of your lost wages—typically around 70% of your average weekly wage in Texas.
• Permanent Disability Payments: For those who suffer long-term or permanent injuries, compensation may be available based on the level of impairment assigned by your doctor.
• Death Benefits: In tragic cases where a worker dies from a job-related injury, their family may be entitled to death benefits, which cover funeral expenses and financial support for dependents.
• Educational or Skills Retraining: If your injury prevents you from returning to your former position, you may be eligible for retraining or vocational education to help you transition into a new job.

These benefits are designed to help injured workers recover without financial distress, but accessing the full extent of benefits can sometimes be difficult due to disputes over the severity of the injury or the amount of lost wages.

Handling

Sedgwick administers Amazon’s workers’ compensation program, processing claims, arranging medical evaluations, and making decisions on payments. Many Amazon employees have expressed frustration with Sedgwick due to delays, claim denials, or insufficient communication throughout the process. In some cases, employees have reported waiting weeks or even months to receive benefits they are entitled to under Texas law.

If your claim is handled by Sedgwick, it is important to keep thorough records of all interactions and documentation related to your injury. If you face issues with delays, denials, or insufficient compensation, consulting with a Houston workers’ compensation attorney can help you fight for the benefits you deserve.

Fear of Retaliation

Many workers fear retaliation from Amazon, such as being demoted, losing hours, or even being terminated after filing a workers’ compensation claim. Although it is illegal for employers to retaliate against employees for exercising their right to workers’ compensation, this is a common concern among Amazon workers.

Retaliation can take many forms, from subtle reductions in hours to more direct actions like being reassigned to less favorable tasks or being dismissed. If you suspect retaliation, it’s essential to document any changes in your work conditions following your injury report. A workers’ compensation attorney can help you file a separate claim for retaliation, ensuring that you are protected under Texas labor laws.

Things to Know About Amazon Workers’ Compensation

Workers’ Comp: A No-Fault System

In Texas, workers’ compensation is a no-fault system, meaning that you do not have to prove that Amazon was negligent or responsible for your injury. As long as the injury occurred while you were performing your job, you are eligible for compensation regardless of who was at fault. This system is designed to streamline the process for employees and reduce the need for lengthy litigation.

Why Employers Need Workers’ Comp Insurance: Legal Obligations

Employers in Texas are required to carry workers’ compensation insurance to protect their employees. Amazon, as one of the largest employers in the state, is required by law to maintain workers’ compensation insurance for all of its employees. This insurance guarantees that employees who are injured on the job have access to medical care and wage replacement benefits while they recover.

In Amazon’s case, workers’ compensation claims are handled through Sedgwick, which administers the program on the company’s behalf.

Who Is Eligible for Workers’ Comp Benefits?

All regular employees are covered under Amazon’s workers’ compensation policy. This includes full-time and part-time employees working in its warehouses, fulfillment centers, and delivery stations across Houston. Even so, as mentioned earlier, independent contractors—such as Amazon Flex drivers—are not covered by workers’ compensation through Amazon. These workers may need to look into alternative legal options if they are injured while on the job.

Injured at Work? Here’s What to Do Next

When you’re injured, you should alert someone as soon as possible. Texas law mandates that employees report their injuries within 30 days, but immediate reporting is always better. Informing your supervisor or manager promptly will help ensure that your injury is properly documented, and that you receive medical treatment without unnecessary delays. Late reporting can complicate your case and might even lead to a denial of benefits.

Beyond Accidents: Other Workers’ Comp Claims

It’s not only sudden accidents that qualify for workers’ compensation. Repetitive strain injuries (RSIs) or cumulative trauma disorders are also covered under Texas workers’ compensation law. These types of injuries develop over time due to repetitive tasks, such as scanning packages, lifting heavy objects, or standing for long hours.

If you experience symptoms of a repetitive stress injury, report them as soon as you can. Delaying the reporting of these types of injuries can make it harder to prove that they are work-related, and may complicate your case with Sedgwick.

According to Insurance Business, the average payout for workers’ compensation claims can range from a few thousand dollars to six figures, depending on the nature of the injury and the worker’s long-term prognosis.

If you’re considering accepting a settlement offer from Sedgwick, it’s fundamental to consult with a workers’ compensation lawyer to ensure the offer is fair and sufficient to cover all of your medical expenses and lost wages.

Non-Subscriber Workers’ Compensation Lawyers

Armstrong Lee & Baker LLP’s experienced workers’ compensation and personal injury attorneys are passionate about helping people hold those who harm them accountable. Taking on Amazon can be daunting, especially since Amazon has made it clear that it does not value its employees’ safety.

Our attorneys are primed and ready to take on the challenge of fighting back against this industry giant, including taking Amazon all the way to trial if that is what it takes. Contact us today to get started.

Joshua Lee

Joshua Lee believes in aggressive, tough advocacy and a client-centered approach to every case. Joshua draws from a wide body of experiences and a robust understanding of the law. Joshua graduated from the New York University School of Law in New York City, which is considered among the best law schools in the world. Our lawyers have 25+ years of combined experience.

Get in touch with Joshua Lee now.