Texas Workers’ Compensation: What Makes Texas Different

Texas is the only state in the U.S. that does not require most private employers to carry workers’ compensation insurance. This creates two entirely different legal paths for injured workers, depending on whether your employer subscribed to the Texas Workers’ Compensation system administered by the Texas Department of Insurance (TDI).

Scenario	Your Legal Options
Employer IS a workers’ comp subscriber	File a workers’ comp claim with TDI for medical benefits and income replacement. Generally cannot sue employer directly. May sue third parties (contractors, manufacturers).
Employer is a NON-SUBSCRIBER (opted out)	Sue employer in civil court for full damages including pain and suffering. Under Tex. Lab. Code § 406.033, employer loses contributory negligence, assumption of risk, and fellow-servant defenses. Much stronger position for the injured worker.

Non-Subscriber Employer Cases: Your Strongest Option

Under Tex. Lab. Code § 406.033, when a non-subscriber employer’s negligence causes a workplace injury, the employer:

• Cannot claim the worker assumed the risk of injury
• Cannot claim a co-worker’s negligence caused the injury (fellow-servant rule eliminated)
• Cannot reduce your recovery based on your own contributory negligence

This makes non-subscriber cases among the strongest types of workplace injury claims in Texas. You can sue for the full spectrum of damages available in a civil lawsuit, including pain and suffering, which the workers’ comp system never covers.

Non-subscribers in Texas include some of the state’s largest employers in retail, oil and gas, construction, and food service. Many employees are unaware their employer opted out until after they are injured.

Third-Party Claims: An Option Even When Workers’ Comp Applies

If your employer carries workers’ comp but a third party caused or contributed to your injury, you can still file a civil lawsuit against that third party. Common third-party defendants in workplace injury cases include:

• A contractor or subcontractor on a job site
• The manufacturer of defective equipment or machinery
• A property owner (for premises liability)
• A driver who caused a vehicle accident while you were working

Third-party claims recover damages the workers’ comp system does not provide, including pain and suffering and mental anguish.

Deadlines for Texas Workplace Injury Claims

For a workers’ comp claim: Report the injury to your employer within 30 days and file the claim with TDI within one year under Tex. Lab. Code § 409.003.

For a civil lawsuit against a non-subscriber employer: Two years from the date of injury under Tex. Civ. Prac. & Rem. Code § 16.003.

For a third-party civil claim: Two years from the date of injury under § 16.003.

These deadlines are strictly enforced. Missing them permanently eliminates your right to claim. Contact Chris Sanchez immediately after a workplace injury.

Frequently Asked Questions — Workers’ Compensation Lawyers in Texas

Does my employer have to carry workers’ compensation in Texas?

No. Texas is the only state that does not require most private employers to carry workers’ compensation insurance. Government contractors are required to carry workers’ comp under Tex. Lab. Code § 406.096. All other private employers can choose to opt out and become “non-subscribers.” Check your employee handbook or ask HR to confirm your employer’s status.

What benefits does workers’ comp provide in Texas?

Texas workers’ compensation provides: (1) medical benefits — all reasonable medical care related to the work injury; (2) income benefits — a percentage of your average weekly wage (typically 70% of the difference between your pre-injury and post-injury wages); (3) impairment income benefits if you suffer a permanent impairment rating; and (4) death benefits for qualifying family members if the injury is fatal. Workers’ comp does NOT cover pain and suffering.

Can I get fired for filing a workers’ comp claim in Texas?

No. Under Tex. Lab. Code § 451.001, it is illegal for an employer to discharge or discriminate against an employee for filing a workers’ compensation claim in good faith. If you were fired after filing a workers’ comp claim, you may have a separate retaliation claim entitling you to reinstatement and additional damages.

My employer is a non-subscriber. What damages can I recover?

Against a non-subscriber employer in Texas civil court, you can recover: medical expenses (past and future), lost wages, lost earning capacity, pain and suffering, mental anguish, physical impairment, and disfigurement. In cases involving gross negligence — such as knowingly exposing workers to dangerous conditions — exemplary damages are available under Tex. Civ. Prac. & Rem. Code § 41.003. The absence of the contributory negligence defense is particularly valuable: even if you made a mistake that contributed to the accident, you can still recover full damages.

Can I sue if I was hurt on an oilfield or construction site in Texas?

Yes. Oilfield and construction sites typically involve multiple contractors and subcontractors. Even if your direct employer carries workers’ comp, the general contractor, site owner, equipment manufacturer, or another subcontractor may have caused or contributed to your injury and can be sued in civil court. Chris Sanchez handles oilfield injury cases throughout West Texas, the Permian Basin, South Texas, and the Gulf Coast.

What if my employer says I was an independent contractor, not an employee?

The independent contractor classification does not automatically bar your claim. Texas courts look at the substance of the relationship, not just the label. Factors include whether the employer controlled your schedule, provided your tools, and determined how the work was done. Misclassification of employees as independent contractors is common in construction, oilfield, and service industries. Chris Sanchez evaluates misclassification as part of every workplace injury case.

I was hurt at work and my employer’s workers’ comp carrier is denying my claim. What do I do?

You have the right to contest a denial through the Texas Department of Insurance Division of Workers’ Compensation dispute resolution process, which begins with a benefit review conference (BRC). If unresolved, the dispute proceeds to a contested case hearing. Chris Sanchez represents injured workers through all stages of the workers’ comp dispute process and in civil appeals if necessary.