If you get hurt at work, you probably assume workers’ compensation insurance will cover your medical care and wage reimbursement. In most places, that’s a safe bet. But here in Texas, we do things differently. The law allows companies to opt out of the workers' comp system. Speaking with an experienced Houston personal injury lawyer can help you understand what that means for your rights and how to recover full compensation.
When an employer makes this choice, they are known as a “non-subscriber.” While this might sound like a dead end, it actually opens up a powerful legal path for you to get the full compensation you deserve by filing a Texas non-subscriber employer lawsuit.
Key Takeaways about Texas Non-Subscriber Employer Lawsuits
- Texas law allows most private employers to opt out of carrying workers' compensation insurance, making them "non-subscribers."
- An employee injured while working for a non-subscriber can file a personal injury lawsuit directly against the employer.
- To win the lawsuit, the injured employee must typically prove that the employer's negligence caused the workplace injury.
- Non-subscriber employers lose significant legal defenses, which can make it easier for an employee to prove their case.
- A successful lawsuit can allow an injured worker to recover a wider range of damages than a traditional workers' comp claim, including compensation for pain and suffering.
What Does It Mean to Be a "Texas Non-Subscriber Employer"?
Across the country, workplace injury rules are fairly standard. If you get hurt, you file a workers’ compensation claim. But Texas marches to the beat of its own drum. It is the only state where private companies can legally choose not to carry workers’ compensation insurance, which often leaves injured employees wondering what questions should I ask to understand their rights and next steps.
When a company has this insurance, they are called a “subscriber.” When they opt out, they are known as a “non-subscriber.” You might wonder why a company would take this risk. Some believe their own safety protocols are strong enough to prevent accidents, while others simply want to avoid the cost of insurance premiums. Many large, well-known companies here in Texas are non-subscribers.
This choice has huge consequences for you, the employee. While a workers’ comp (subscriber) system is “no-fault”—meaning you can get benefits even if you contributed to the accident—it also severely limits the amount and type of compensation you can receive. When you’re injured at a non-subscriber company, the path isn't a claim; it's a non-subscriber employer lawsuit based on proving your employer was at fault.
How Do I Know if My Employer Is a Non-Subscriber?
Your employer is legally required to tell you about their workers' compensation status. If you're unsure, there are several places you can check to find this crucial information.
- Employee Paperwork: Look through the documents you received when you were hired. Your employer should have provided a written notice about their workers' compensation status.
- Workplace Notices: Texas law requires employers to post notices in common areas, like break rooms or near time clocks, stating whether or not they carry workers' compensation insurance.
- Human Resources: You can always ask your HR department directly for clarification on the company’s insurance status.
If you can't find the information through these channels, you can also verify an employer’s coverage status through the Texas Department of Insurance. Knowing your employer’s status is the first step in understanding your rights after a workplace accident, particularly if accident claims go to court and you need to prove your employer’s responsibility.
Managing a Lawsuit Based on Negligence
When your employer is a non-subscriber, your right to recovery depends on one key concept: negligence. Negligence is a legal term that, in simple terms, means your employer failed to provide a reasonably safe work environment, and this failure directly led to your injuries.
Unlike a workers’ comp claim, where fault doesn't matter, in a non-subscriber lawsuit, proving this failure is the foundation of your case. It’s not enough to show that you got hurt at work; you must show that your employer did something wrong (or failed to do something right) that caused the accident.
So, what does employer negligence look like in the real world? It can take many forms, from big safety oversights to small, everyday hazards.
Some common examples include:
- Inadequate Training: Failing to properly train employees on how to safely use machinery or perform their job duties.
- Faulty Equipment: Forcing employees to use tools, vehicles, or machines that are broken, outdated, or poorly maintained.
- Unsafe Conditions: Ignoring hazards like wet floors, cluttered walkways, poor lighting, or a lack of proper security.
- Lack of Safety Gear: Not providing necessary personal protective equipment (PPE) like hard hats, safety goggles, or slip-resistant shoes.
- Understaffing or Unreasonable Demands: Pushing employees to work too fast, take dangerous shortcuts, or work excessively long hours, leading to fatigue and mistakes.
If any of these situations sound familiar, it could be a sign that your employer’s negligence played a role in what happened to you — and it may be time to ask what can a lawyer do for you to help protect your rights and pursue fair compensation.
The Major Advantage for Injured Workers: Lost Defenses
While having to file a lawsuit might sound intimidating, Texas law gives a significant advantage to employees of non-subscribers. To level the playing field, the law strips these employers of powerful legal defenses they would normally use to fight a personal injury claim.
According to the Texas Labor Code § 406.033, a non-subscriber employer cannot defend themselves by arguing that:
- The employee was also at fault (Contributory Negligence): In most personal injury cases, if you are found partially responsible for your own accident, your compensation can be reduced or eliminated. But in a non-subscriber case, this defense is off the table. Even if your own mistake contributed to the injury, the employer can still be held fully responsible for their negligence.
- The employee knew the job was dangerous (Assumption of the Risk): Employers cannot claim that you "assumed the risk" of injury simply by accepting the job. They have a duty to provide a safe workplace, regardless of the inherent dangers of the work.
- A coworker caused the injury (The Fellow Servant Rule): Your employer cannot escape responsibility by blaming your injury on the actions of another employee. The company is ultimately responsible for the safety of its entire team and the actions of its employees on the clock.
Losing these defenses makes it much more difficult for a non-subscriber employer to avoid accountability. It puts the focus squarely on one question: Did the employer provide a reasonably safe place to work?
Recovering Full Compensation for Your Injuries
Perhaps the most important difference between a workers' comp claim and a personal injury lawsuit is the amount and type of compensation you can seek. The legal term for this compensation is "damages."
Workers' compensation benefits are strictly limited. They typically cover your medical bills and a portion of your lost wages, and that’s it. There is no compensation for how the injury has impacted your quality of life. A lawsuit, however, allows you to seek recovery for the full scope of your losses — which is why you need a personal injury lawyer who can pursue every available form of compensation on your behalf.
Damages you may be able to recover in a successful lawsuit include:
- All Past and Future Medical Expenses: This covers everything from the initial emergency room visit to future surgeries, physical therapy, medication, and in-home care.
- All Past and Future Lost Wages: You can be compensated for every dollar you’ve lost from being unable to work, as well as the income you are likely to lose in the future if your ability to earn a living has been permanently affected.
- Pain and Suffering: This compensates you for the physical pain and discomfort you have endured and will continue to endure because of the injury.
- Mental Anguish: This addresses the emotional and psychological trauma of the accident, such as anxiety, depression, fear, or post-traumatic stress disorder (PTSD).
- Physical Impairment: If your injury prevents you from doing activities you once enjoyed, like playing with your kids, engaging in hobbies, or simply walking without pain, you can be compensated for this loss.
- Disfigurement: This provides compensation for scarring or other permanent changes to your appearance caused by the injury.
These non-economic damages, like pain and suffering, often represent the most significant part of a person's recovery, and they are completely unavailable in a standard workers' compensation claim.
Challenges of a Personal Injury Lawsuit Against Your Employer
Winning a non-subscriber lawsuit is not automatic. You and your legal team must still gather evidence and prove that your employer was negligent. Whether you were injured on a construction site near downtown Houston or in a refinery along the Ship Channel, you can expect the company and its insurer to fight back.
They may try to argue that the accident was entirely your fault, dispute the severity of your injuries, or pressure you into accepting a quick settlement that is far less than you deserve. They have teams of adjusters and lawyers whose job is to minimize the company’s financial exposure. This is a time when having a dedicated advocate on your side can make all the difference, so don’t hesitate to ask a personal injury lawyer about your options before agreeing to anything.
FAQs: Non-Subscriber Employer Lawsuits in Texas
Here are some answers to common questions about filing a lawsuit against a non-subscriber employer in Texas.
How long do I have to file a lawsuit against my non-subscriber employer in Texas?
In Texas, the statute of limitations for personal injury cases is generally two years from the date of the injury. This is a strict deadline, and if you miss it, you will likely lose your right to seek compensation forever. It is crucial to act quickly to protect your rights.
What if my employer has their own "injury benefit plan" instead of workers' comp?
Many non-subscriber employers create their own private injury benefit plans. Be very careful with these. They are often written by the employer, for the employer, and may contain very strict reporting deadlines, limit your choice of doctors, and offer benefits that are far less than what you could recover in a lawsuit. Agreeing to this plan may require you to sign away your right to sue.
Can my employer fire me for filing a lawsuit?
No. It is illegal for an employer to retaliate against an employee for filing a lawsuit or reporting a workplace injury in good faith. Texas law protects employees from this kind of retaliation. If you are fired, demoted, or punished after filing a claim, you may have grounds for a separate wrongful termination lawsuit.
Does it cost money to start a Texas non-subscriber employer lawsuit?
Most personal injury law firms that handle these cases work on a contingency fee basis. This means you do not pay any attorney's fees upfront. The law firm covers the costs of investigating and pursuing your case, and they only get paid if they win a settlement or verdict for you.
What's the difference between just getting hurt at work and having a case for negligence?
Simply getting injured on the job is not enough to win a lawsuit. You must be able to show that your employer failed in its legal duty to provide a safe workplace. This means proving that a specific hazard existed, that your employer knew or should have known about it, and that they failed to take reasonable steps to fix it, which directly led to your injury.
Let the Boots and the Suits Fight for You
Dealing with a workplace injury is tough, and facing a legal battle with your employer can feel impossible. But you don’t have to do it alone. At Suits & Boots Accident Injury Lawyers, we were tired of seeing hardworking Texans get shortchanged by insurance companies and other law firms. We built our firm to be different.
We champion our clients, not just represent them. We use our Max Money Method to dive deep into your case, finding ways to get you the full and just compensation you deserve. While you focus on healing, let the WORK of the BOOTS investigate your accident and the SKILL of the SUITS demand accountability. We can even help you find options for immediate financial help to get you through this difficult time.
Don’t get stuck with all the hat and no cattle. You deserve “take it to the bank” information about your rights and options. Claim or start your free, no-obligation 30-Day Investigation with Suits & Boots Accident Injury Lawyers today by contacting us at (713) 489-0922 or through our online form. Let us explain the true value of your case.