Texas Non-Covered Employer

Workers' Compensation Issues

Texas employers that have elected to not purchase workers' compensation insurance lose statutory protection from common law liability related to workplace negligence, and are subject to several requirements under Texas law.  Non-compliance can carry significant penalties.

The following Texas Administrative Code excerpts address three important employer requirements including

 1) notifying employees of non-covered status in both English and Spanish, 2) employee work related injury reporting requirements and 3) annual registration with The Texas Workers Compensation Commission for non-covered status. 

1)  Covered and Non-Covered Employer Notices to Employees.  Notice 5 •  English • Spanish

Excerpt - "Texas Workers' Compensation Commission Rule 110.101(e)(3) requires employers who elect not to be covered by workers' compensation, or who cancel or terminate coverage to advise their employees that they have elected not to be covered. Notices in English, Spanish and any other language common to the employer's employee population must be posted and: (1) Prominently displayed in the employer's personnel office, if any; (2) Located about the workplace in such a way that each employee is likely to see the notice on a regular basis; (3) Printed with a title in at least 30 point bold type, subject in at least 20 point bold type, and text in at least 19 point normal type; and (4) Contain the exact words as prescribed in Rule 110.101(e)(3)."

2)  Non-Subscribing Employer's Report of Injury. TWCC-7 •  Instructions •  Supplement

Excerpt - " (a) An employer, as defined by the Texas Labor Code, §411.001(2) who is a non-subscriber and employs five or more employees not exempt from workers' compensation insurance coverage, shall file with the Commission a written report for each death, each occupational disease, and each injury that results in more than one day's absence from work for the injured employee.  (b) The report of injury shall be filed in the form, format, and manner prescribed by the Commission. (c) A report of all injuries that have occurred during a calendar month shall be filed with the Commission not later than the seventh day of the following month. For purposes of this section, a report is filed when received by the Commission. "

3)  Requirements for Notifying the Commission of Insurance Coverage. TWCC-5 • TWCC-205

Excerpt - "(a) This rule applies to employers whose employees are not exempt from coverage under the Workers' Compensation Act (the Act), and to insurance carriers. It does not apply to employers whose only employees are exempt from coverage under the Act. Certified Self Insurers are also subject to requirements specified in Chapter 114 of this title (relating to Self-Insurance). (b) Employers and insurance carriers shall submit to the Commission, or its designee, insurance coverage information in the form and manner prescribed by the Commission. The Commission may designate and contract with a data collection agency to collect and maintain coverage information. (c) Employers are required to provide notice of non-coverage information in accordance with subsection (b) of this section as follows:  (1) if the employer elects not to be covered by workers' compensation insurance, the earlier of the following:  (A) 30 days after receiving a Commission request for the filing of a notice of non-coverage and annually thereafter on the anniversary date of the original filing;  (B) 30 days after hiring an employee who is subject to coverage under the Act, and annually thereafter on the anniversary date of the original filing;  (2) if the employer cancels coverage without purchasing a new policy or becoming a certified self-insurer, within 10 days after notifying the insurance carrier and annually thereafter on the anniversary of the cancellation date of the workers' compensation policy; or (3) if the employer is principally located outside of Texas, within 10 days after receiving a written request from the Commission for information about the coverage status of its Texas operations. "

These excerpts are provided for information purposes only as employers should be aware of these responsibilities. 

They are not all inclusive and they are not intended to replace or be used without competent legal counsel.

You may want to seek legal counsel that is familiar with ERISA plan law and implementation

as well as  pre-injury waivers, dispute resolution, mediation and arbitration programs.

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