Texas runs the only opt-in workers' compensation system in the United States. Employers who buy in are called subscribers and enjoy immunity from negligence lawsuits in exchange for paying statutory benefits. Employers who don't buy in are nonsubscribers — and they can be sued directly by an injured employee for negligence, often without the limitations that apply elsewhere.
Which side your employer falls on changes everything about your case. Nonsubscriber cases routinely recover full pain-and-suffering damages, lost earning capacity, and other compensation that standard workers' comp simply doesn't pay.
Texas job-injury law in plain English
Subscriber vs. nonsubscriber — what's the difference?
If your employer is a subscriber (most large Texas employers are):
- You're entitled to workers' comp benefits regardless of fault — but the benefits are limited.
- You generally cannot sue your employer directly.
- Wage replacement is approximately 70% of your average weekly wage, capped by state law.
- Medical care is fully covered (for compensable injuries).
- You may still have a third-party claim against anyone other than your employer whose negligence contributed.
If your employer is a nonsubscriber (common among small employers and certain industries):
- You can sue the employer directly for negligence.
- The employer loses common-law defenses (comparative negligence, contributory negligence, assumption of risk, fellow-servant) under Tex. Labor Code § 406.033.
- You can recover the full range of damages — including pain and suffering, mental anguish, lost earning capacity, and disfigurement.
- These claims routinely settle for much more than subscriber WC benefits.
Common Texas workplace injuries we handle
- Construction site falls and injuries
- Oilfield and refinery injuries (Houston ship channel area)
- Warehouse and forklift accidents
- Repetitive stress / cumulative trauma injuries
- Equipment malfunction injuries
- Chemical exposure and burns
- Trucking accidents while on the job
- Workplace violence and assaults (where negligent security applies)
Compensation available
Under subscriber workers' comp:
- Medical benefits (covered employer-approved care)
- Temporary income benefits (~70% wage replacement)
- Impairment income benefits (for permanent injury rating)
- Supplemental income benefits (long-term)
- Lifetime income benefits for catastrophic cases
- Death benefits for surviving family
Under a nonsubscriber lawsuit or third-party claim:
- All of the above, plus:
- Full lost wages (not capped)
- Pain and suffering
- Mental anguish
- Lost earning capacity
- Disfigurement
- Loss of consortium
- Punitive damages for gross negligence
Frequently asked questions
Is workers' compensation mandatory in Texas?
No. Texas is the only U.S. state where private employers can legally opt out of the workers' compensation system. Employers who opt out are called "nonsubscribers" and can be sued directly by injured employees for negligence — often recovering far more than standard workers' comp pays.
Can I sue my employer if I'm hurt at work?
If your employer is a nonsubscriber, yes. If they carry standard workers' comp, you generally cannot sue them directly — but if a third party (a subcontractor, manufacturer of faulty equipment, property owner, etc.) contributed to your injury, a third-party claim against that party is allowed even on top of your workers' comp benefits.
How do I know if my employer is a subscriber or nonsubscriber?
Texas employers must post notice. We can also check the Texas Department of Insurance, Division of Workers' Compensation database. Don't assume — call us and we'll look it up before your free consultation.
My employer's insurance is offering a quick settlement. Should I take it?
Almost never. Early settlements rarely account for ongoing or future medical care, lost earning capacity, or pain and suffering (in nonsubscriber cases). Once you sign, the case is over. Call us before you accept anything.