Injured While Working at Costco in Texas? Here’s What You Need to Know

Many Costco employees are surprised to learn that traditional workers’ compensation doesn’t apply to them in Texas. While you may be looking for information on worker’s comp, Costco operates as a non-subscriber in Texas, meaning your work injury claim will be handled through a private, company-controlled system rather than a state-regulated program. Understanding this difference is critical, as it affects everything from the benefits you receive to your ability to file a lawsuit.

As lawyers who advocate for injured Costco employees, we’re here to explain what this means for you, how it affects your rights, and the steps you should take to protect your well-being and your future.

What Does It Mean that Costco is a Non-Subscriber in Texas?

Most people are familiar with the typical workers’ compensation program that allows employees to recover compensation for their injuries on the job. This also covers illnesses or occupational diseases that may arise in the course and scope of your employment.

In most states, workers’ compensation provides a structured system that covers medical expenses and a portion of lost wages without requiring the employee to prove fault. However, Texas is unique because employers are not required to carry this insurance. As a result, large companies like Costco can opt out and create their own internal injury benefit plan, which often come with different rules and limitations.

It’s important to understand that this is not a traditional workers’ compensation claim. Instead, you are dealing with Costco’s internal injury benefit plan, which is designed and administered by the company. These plans often include strict deadlines, limited medical provider options, and caps on certain types of compensation. While every employer has their own unique plan, it’s common for these plans to primarily protect the interests of the employer rather than provide quality care for injured employees.

The silver lining in all of this is that you can file a suit against non-subscriber companies for negligence. So you might recover more compensation than if Costco was a subscriber to workers’ comp. In some ways, Texas penalizes employers who choose not to purchase workers’ compensation by allowing them to be help responsible for not only the medical costs and lost wages of an injury, but also for pain and suffering, mental anguish, disfigurement, and impairment. None of which are permitted under traditional workers’ compensation.

Additionally, non-subscriber employers like Costco lose certain legal defenses. For example, they generally cannot argue that you assumed the risks of your job. This can make it easier for injured employees to recover damages in a personal injury lawsuit compared to a traditional workers’ compensation case.

If you need assistance filing your Costco workers’ compensation claim, would like to appeal your decision or are looking to file suit, contact our attorneys today.

Why Costco Injury Claims Are Different from Workers’ Comp

If you were injured while working at Costco in Texas, your case does not follow the typical workers’ compensation process most people expect. Instead of a standardized system, you’re dealing with a private plan that the company controls from start to finish.

This means that Costco:

• Sets the rules for reporting and filing claims
• Often determines which doctors you can see
• Evaluates your injury and decides what benefits to pay

Because of this structure, disputes are more common. Employees may find their injuries or treatment minimized or their claims denied altogether. This is one of the primary reasons many Costco injury claims ultimately turn into personal injury lawsuits rather than simple benefit claims.

Challenges You May Face with Costco’s Injury Benefit Plan

While Costco’s injury benefit plan may offer some initial support, it often comes with limitations that can make recovery more difficult for employees.

Common challenges include:

• Strict reporting deadlines (often within 24-48 hours)
• Requirements to use company-approved doctors
• Pressure to return to work before fully healing
• Denial of claims based on technical or procedural issues

Because the company manages the process, there may be disagreements about the severity of your injury or the treatment you need. Without proper advocacy, employees may accept less compensation than they deserve.

When You Can Sue Costco for a Workplace Injury

Unlike traditional workers’ compensation systems, non-subscriber employers like Costco can be sued for negligence. This can be a major advantage for injured employees.

You may have a valid lawsuit if your injury was caused by:

• Unsafe working conditions
• Lack of proper training
• Defective equipment
• Negligent actions of a supervisor or coworker

Through a lawsuit, you may be able to recover damages beyond what the company’s plan offers, including full lost wages, future earnings, pain and suffering, and more. In serious injury cases, this can result in significantly higher compensation.

Client Reviews

What our clients are saying about us

Kirby C.

Google Review

I cannot recommend Kelly Viktorin at Armstrong Lee & Baker highly enough. After being injured at work, I was incredibly discouraged as many attorneys wouldn’t take my case due to the complexities involved. From our very first consultation, Kelly and her team jumped right in, demonstrating a level of dedication and expertise that immediately put me at ease. Throughout the entire process, their communication was outstanding. I was consistently kept informed of any updates and felt like a priority. Kelly truly went above and beyond to fight for me, and I am so grateful for her hard work and commitment. If you’re facing a challenging work injury case, especially with a Texas non-subscriber, don’t hesitate to reach out to Kelly Viktorin. You’ll be in excellent hands.

Toby B.

Google Review

When I got injured my company didn’t have workers comp. They had something called non subscriber insurance. I tried a dozen or more lawyers and no one would take my case. I lost my house in Texas so right as I was moving back to where I was from, Florida, I called Armstrong Lee & Bkaer. They said they could take my case. Shortly after I meet Adam Grable.
Adam took the case and unraveled it like a champ. It was a difficult case and that’s why other lawyers didn’t take. Over the next year, Adam because a friend and a member of the family. I found him brilliant and personable and when needed he found for me. In the end, we took a settlement even though Adam told me he had a good shot at trial. He understood i wanted this behind me! If you ever find yourself needed a lawyer trust me Adam Grable will be on your side!

Majah W.

Google Review

I had been injured at work, and the attorneys at Armstrong Lee & Baker fought for what I was owed. I’m graciously appreciative for their attentiveness and swiftness with handling my case. Shout out to Lindsey W.

Toby B.

Google Review

When I got injured my company didn’t have workers comp. They had something called non subscriber insurance.
I tried a dozen or more lawyers and no one would take my case.
I lost my house in Texas so right as I was moving back to where I was from, Florida, o call Armstrong and Lee. They said they could take my case. Shortly after I meet Adam Grable.
Adam took the case and unraveled it like a champ. It was a difficult case and that’s why other lawyers didn’t take.
Over the next year, Adam because a friend and a member of the family.
I found him brilliant and personable and when needed he found for me.
In the end, we took a settlement even though Adam told me he had a good shot at trial. He understood i wanted this behind me!
If you ever find yourself needed a lawyer trust me Adam Grable will be on your side!

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What to Do After a Workplace Injury at Costco

Notify Your Supervisor

You should report your injury, illness, or occupational disease to your supervisor as soon as possible. This way, there is evidence that you suffered injuries in the course and scope of employment, and your employer will have more difficulty disproving your claim.

Prompt reporting is particularly important in non-subscriber cases. Delays can be used as a reason to deny your claim entirely, even if your injury is legitimate. Always document when and how you reported the incident.

Seek Medical Care

After reporting your injuries, you should seek medical attention as soon as possible. When visiting your doctor, you should tell them you were hurt while on the job at Costco. Remember to ask for copies of any medical reports or treatment plans.

You may be required to see a company-approved provider. If your injury is serious or not improving, obtaining an independent medical opinion can be critical to protecting both your health and your claim.

File Your Costco Work Injury Claim

You ought to file your claim after reporting your accident to Costco. You will need to file through their private workers’ compensation insurance to receive compensation for your injuries. This compensation might include assistance with lost wages, medical bills, and other expenses. You should also review Costco’s most recent private insurance policy for information on Costco disability insurance available to you.

Keep copies of all documents, including incident reports, medical records, and communications with your employer. Strong documentation can significantly improve your chances of recovering fair compensation.

File an Appeal or Lawsuit If Necessary

If they deny your benefits claim, you should contact our lawyers about your options. We can help guide you through the appeals process to receive your benefits. If needed, our attorneys can also help you file a lawsuit to recover what you need.

In many cases, a denied claim may actually indicate that a lawsuit is the better path forward, especially if negligence played a role in your injury.

Watch Out for These Tactics from Costco’s Insurance Team

Even though they can’t use some defenses, Costco’s insurance team might still try to:

• Downplay your injury
  They may claim your injury isn’t serious or blame it on a pre-existing condition.
• Pressure you into a quick settlement
  They might offer you money upfront in exchange for waiving your rights to sue.
• Claim the injury was not their fault
  They may try to claim they can’t be held negligent for your injury.

That’s why it’s so important to have an experienced non-subscriber injury attorney on your side.

Causes of Injuries While Working at Costco

Costco employees might sustain injuries or become ill on the job for multiple reasons. These include:

• Lifting cumbersome boxes
• Having an item fall from a shelf and hit you
• Getting into a warehouse vehicle accident
• Slipping, tripping, and falling on items left in the aisles
• Falling off of a ladder

In a fast-paced warehouse retail environment like Costco, employees are often working under tight deadlines with high productivity expectations. This can lead to rushed movements, improper lifting form, and increased exposure to hazards. In some cases, injuries also occur because of inadequate staffing, poor training, or failure to maintain a safe work environment.

Common Injuries on the Job at Costco

Depending on your role, you could suffer various injuries due to the risks involved. Injuries that an employee at Costco might experience include:

• Spinal cord injuries
• Neck injuries
• Dislocated hips
• Repetitive motion injuries
• Electric or chemical burns
• Sprains

Many Costco employees also suffer from cumulative injuries that develop over time. Repeated lifting, bending, and standing for long periods can lead to chronic back pain, joint issues, and musculoskeletal disorders. These types of injuries can be harder to prove under a non-subscriber plan, making proper documentation and legal guidance especially important.

If you have sustained one of these injuries while working at Costco, consider contacting our attorneys. We will aggressively advocate for you and help you get the compensation you need for your injuries.

Why Hiring a Non-Subscriber Lawyer Matters

Handling a workplace injury at Costco without legal help can be overwhelming. An experienced Texas non-subscriber attorney can:

• Review your case and explain your rights
• Gather evidence and interview witnesses
• Deal with insurance companies so you don’t have to
• Fight for full compensation in court if needed

At Armstrong Lee & Baker LLP, we’ve helped many injured workers hold non-subscriber employers accountable. We know how Costco and similar companies operate, and we’ll fight to get you every dollar you deserve.

Schedule a Free Consultation

You don’t have to deal with this alone. If you were hurt while working at Costco in Texas, our team is ready to help. The sooner you contact us, the sooner we can start building your case.

Call us or request a free consultation today.

We’re here to listen, guide you, and fight for your future.

C.J. Baker

C.J. Baker represents victims with serious injuries and he won’t let any corporation or insurance company stop his clients from getting complete justice. He has won millions of dollars for victims of 18-wheeler crashes, oilfield equipment failures, offshore platform explosions, and defective medical devices. Our lawyers have 25+ years of combined experience.

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