The Lone Star State is one of the few states that does not require employers to carry workers’ compensation insurance.
Instead, employers can opt-out and either not have insurance to cover injured workers or maintain a separate policy that may or may not cover your injury.
This may create a confusing set of circumstances for those suffering from work injuries who just want financial and legal help to move forward.
If you were injured on the job and your employer does not carry workers’ compensation, you may ask yourself, what damages you may be able to recover for a work injury as a non-subscribing employee.
In this article, the Armstrong Lee & Baker LLP team provides information about Texas non-subscriber rules. We also explain the types of compensation you may be able to receive by filing a claim against your employer.
We understand the often complex Texas laws surrounding recovering compensation for work injuries when your employer does not have workers’ comp insurance.
Our team has helped clients recover millions to reimburse them for the financial and emotional loss of being injured on the job.
Rules About Texas Non-Subscriber Insurance
In Texas, most businesses and other employers have a choice about whether or not to “subscribe” to workers’ compensation insurance.
Under a workers’ compensation policy, the employee may recover wage replacement benefits and compensation for injury-related medical expenses.
But there are limits depending on the type of policy that the employer has, the pertinent facts, and the law at play in that situation. Workers cannot sue or hold their employers responsible if they are subscribed to workers’ compensation.
By contrast, employers who do not subscribe to workers’ compensation insurance (i.e., “Texas non-subscriber insurance”) can be sued by employees who suffer injuries on the job.
Workers can seek to recover compensation by filing personal injury lawsuits. The employee is responsible for proving the elements of a work-injury case, including establishing that their employer or someone who worked for their employer was negligent.
Texas employers who do not subscribe to the state workers’ compensation program may take out different insurance policies to cover some aspects of work injuries.
If the employer’s insurance does not adequately compensate the employee or if the provider denies coverage, workers can still file a lawsuit to recover a financial award.
Before accepting compensation from your employer, it is a good idea to talk to an attorney. You want to ensure you understand the implications if you take the offer.
An attorney can also help you determine if it is in your best interest to accept the settlement versus pursuing a personal injury lawsuit.
What Damages May I Be Able to Recover for a Work Injury as a Non-Subscribing Employee?
As an injured employee whose employer does not subscribe to workers’ compensation, you may be able to recover damages in a personal injury lawsuit against your employer.
Under Texas law, the compensation available to you includes economic, noneconomic, and, in rare cases, exemplary (or punitive) damages.
An economic damages award reimburses you for the financial burden of the work injury. This might include compensation for your medical bills, prescription costs, lost wages, and physical therapy fees.
Typically, a damages award encompasses past expenses and those you reasonably expect to incur in the future because of the accident or injury, such as lost earning capacity or future medical care.
Noneconomic damages compensate you for the emotional, psychological, and societal costs of the injury. For example, this category provides financial relief to address the pain and suffering you experienced because of what happened.
Finally, courts award exemplary damages in the uncommon case where it is necessary to punish an at-fault employer. Typically, exemplary damages are reserved for claims with evidence of fraud, malice, or gross negligence.
Texas Case Law Safe Work Environment Non-Subscriber Employers
Regardless of their status as a subscriber or non-subscriber, Texas employers must maintain a safe work environment for their employees. For example, they must implement safety protocols, properly train their employees and management, provide necessary equipment and breaks, and so on.
If an employer fails to provide a safe work environment and a worker is injured, the employer may be held liable if they are a non-subscriber. On the other hand, subscribers are not held responsible (in most cases).
Employer Defenses in the Texas Labor Code Non-Subscriber
The Texas Labor Code non-subscriber allows employers to assert limited defenses if their employee files a personal injury lawsuit against them due to an on-the-job injury.
The employer can allege that the worker intentionally caused their injuries or did something to cause themselves harm intentionally. The second defense is that the employee was intoxicated while on the job when they were injured.
Armstrong Lee & Baker: Workers’ Rights Advocates Serving Texas
When you are injured on the job, your priority is to get better, get compensation, and get back to your normal life as soon as possible.
Our team understands how frustrating and challenging it can be to suffer a work injury and try to pursue compensation. We are here to help ease your burden and hold your employer accountable.
Scott Armstrong of Armstrong Lee & Baker provides aggressive but personable legal representation, helping clients to achieve favorable results in many complex situations.
His hard work and dedication have earned him the distinguished ranking of Rising Star from Super Lawyers, a distinction reserved for 2.5% of attorneys who have been practicing for ten years or less and are under 40.
If you suffered a work injury and have questions about receiving compensation, call our firm today at 832-402-6637 or contact us online to schedule a consultation.
C.J. Baker represents victims with serious injuries and has won millions of dollars for victims of 18-wheeler crashes, oilfield equipment failures, offshore platform explosions, and defective medical devices. C.J. graduated summa cum laude from Texas Tech University School of Law in 2016. He was an editor of the Texas Tech Law Review and a top national trial and moot-court advocate.
Frequently Asked Questions
Absolutely nothing. At Armstrong Lee & Baker LLP, our attorneys work on a contingency fee basis. This means that you owe us nothing unless we win your case, whether that’s in the form of a settlement or a judgment. We offer a free consultation to anyone who thinks they might have a personal injury case.
We suggest speaking with an attorney as soon as possible after your injury. Something to keep in mind is that all personal injury cases need evidence, and that evidence often degrades over time. As a result, many jurisdictions have a strict statute of limitations (or time limit) for filing a claim. In Texas, most victims have only two years from the date of injury to file, so it is important to start building your case immediately.
In the state of Texas, employers have the option of filing for workers’ compensation insurance. This policy covers them in case an employee suffers an injury on the job. However, some employers choose to be non-subscribers, which means they opt out of this coverage and lose certain legal protections. This means that if an injured employee sues them after a work injury, they may end up paying more damages. In addition, they may be liable for pain and suffering, punitive damages, and medical benefits. Learn more about non-subscriber injuries here.
The Texas Department of Insurance (TDI) keeps track of employers that report their non-subscriber status. Currently, you can find a spreadsheet of every reported non-subscriber business in Texas under TDI’s workers’ compensation insurance coverage verification page. This includes the business address, business name, and filing dates. Learn more here.
There are a few different ways to manage your bills while waiting for your case to settle. For medical treatment, it is common to arrange a lien with the doctor’s office or hospital. A medical lien is essentially an agreement to pay back your treatment costs with a portion of your potential settlement. Another option for miscellaneous bills, such as rent, utilities, or other essential expenses, is lawsuit funding. Much like a lien, you pay these loans back with a portion of your settlement or judgment. However, these loans have high interest rates and fees, so be sure to discuss this option with your attorney.