Non-Subscriber Employer
Work Injury in Texas
Texas is the only state where employers can legally refuse to carry workers compensation insurance. If you suffered a non-subscriber work injury in Houston—and your employer opted out—you have powerful legal rights most workers don’t know about.
A non-subscriber employer in Texas is a private-sector employer that has elected not to carry workers compensation insurance under Chapter 406 of the Texas Labor Code. Texas is the only state where this is legal. According to the Texas Department of Insurance (TDI), approximately 25% of Texas employers are non-subscribers as of the 2022 survey.
What “Non-Subscriber” Means
Under Chapter 406 of the Texas Labor Code, employers in Texas are not required to carry workers compensation insurance. An employer who opts out is called a “non-subscriber.” Non-subscriber employers must file notice with the Texas Department of Insurance, Division of Workers’ Compensation and post notices in the workplace informing employees they do not have coverage.
Many large Houston-area employers—including some construction companies, staffing agencies, and industrial operations—are non-subscribers. Some offer alternative benefit plans (often called “ERISA plans” or occupational injury benefit plans), but these are not workers compensation and do not carry the same legal protections for the employer.
Three Defenses Your Employer Loses
This is the critical part. When an employer opts out of workers comp, they give up three of the strongest legal defenses available under Texas law. If the employer also had OSHA violations at the time of your injury, the case becomes even stronger. Under Section 406.033 of the Texas Labor Code, a non-subscribing employer cannot argue:
Contributory Negligence
The employer cannot argue that your own negligence caused the injury. Even if you made a mistake, it cannot be used to reduce or eliminate your damages.
Fellow-Servant Rule
The employer cannot blame a coworker for the accident. If a fellow employee's actions contributed to your injury, the employer is still liable.
Assumption of Risk
The employer cannot argue that you accepted the risk of injury by doing your job. Dangerous work does not excuse the employer from liability.
Without these defenses, non-subscriber cases are often significantly easier to win than standard workers comp or personal injury claims. The injured worker only needs to show that the employer was negligent to any degree—a much lower bar than in subscriber cases. Learn more about third-party claims that may apply alongside your non-subscriber lawsuit.
How to Check Your Employer’s Status
The Texas Department of Insurance, Division of Workers’ Compensation maintains a public database where you can verify whether your employer carries workers compensation coverage. You can search by employer name at tdi.texas.gov. Your employer is also required by law to post their coverage status in a visible location at the workplace and to provide written notice to each employee.
If you discover that your employer has no coverage after a workplace injury in Houston, contact a Houston work injury lawyer immediately. The statute of limitations under the Texas Civil Practice & Remedies Code is generally two years from the date of injury for personal injury claims against non-subscribers.
Non-Subscriber Statistics in Texas
According to the TDI 2022 Non-Subscriber Survey, approximately one in four Texas employers (25%) do not carry workers compensation insurance, and 17% of Texas employees work for non-subscribers. Among private-sector employers, non-subscription rates are even higher in certain industries. The construction, staffing, retail, and restaurant sectors have among the highest rates of non-subscription.
In the Houston metropolitan area, the mix of heavy industrial employers (many of whom are subscribers) and the large number of subcontractors and staffing agencies (many of whom are not) creates a complex landscape. It is common for an injured worker to be employed by a non-subscribing staffing agency while working at a subscriber’s refinery or plant—potentially giving rise to both a non-subscriber claim against the employer and a third-party claim against the site owner.
Bottom line: If your Houston employer is a non-subscriber, your path to full compensation is clearer than most workers realize. You can sue your employer directly, they lose their strongest defenses, and you can recover full damages including pain, suffering, and future lost earnings. Use our quiz to see if you qualify.