Workers’ compensation is a state-regulated insurance program that handles the employer’s obligation to workers who are injured or made ill due to a workplace exposure. Workers Compensation is not required by statute in Texas (in most cases) but, employers who choose not to provide Workers Compensation to their employees still have obligations.
The employer must file an annual notice with TDI DWC, post notices at their work site that they are not providing workers compensation, and then tell each new employee in writing that they are not being provided with worker’s compensations coverage.
If an employee sues an employer who is not providing Workers Compensation coverage, the employer cannot argue in court that the injured employee’s negligence caused the injury; another employee’s negligence caused the injury; or the injured employee knew about the danger and voluntarily accepted it. This is a very important but, very misunderstood coverage that every business owner should carefully consider.