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Most workers assume their employer carries workers’ compensation insurance. In Texas, that assumption can be costly. Texas is the only state in the country that does not require private employers to carry workers’ compensation coverage, which means a significant number of Houston workers are injured every year with no automatic insurance system to fall back on.
If you were hurt on the job and your employer is a non-subscriber, you still have legal options. In some cases, your potential recovery may be broader than under a traditional workers’ compensation claim, though these cases are typically more complex and fact-dependent.
What Does “Non-Subscriber” Mean in Texas?
In Texas, a non-subscriber employer has opted out of the state workers’ compensation system under Texas Labor Code Chapter 406.
Under Texas Labor Code Chapter 406, employers can choose whether to participate in the workers’ compensation system administered by the Texas Department of Insurance, Division of Workers’ Compensation (TDI-DWC). Those who opt out are called non-subscribers. Employers who go this route must notify employees and file an annual Report of Non-Coverage (Form DWC-005) with the Texas Department of Insurance, Division of Workers’ Compensation (TDI-DWC), confirming that they do not subscribe to the state workers’ compensation system.
This is not a loophole or a technicality. It is a deliberate choice some employers make, and it shifts significant legal exposure back onto them when a worker gets hurt.
Can You Sue a Non-Subscriber Employer in Texas?
Yes. Texas law allows injured workers to file a personal injury lawsuit directly against a non-subscriber employer, without the typical limitations of workers’ comp.
Under the workers’ compensation system, employees generally give up their right to sue their employer in exchange for guaranteed benefits. Non-subscriber employees never made that trade. That means if your employer opted out and you were injured due to their negligence, you can bring a negligence claim directly against them in civil court.
There is another critical advantage here. Texas Labor Code Section 406.033 prevents non-subscriber employers from asserting several common defenses, including:
- Contributory negligence by the employee
- Assumption of risk
- The fellow servant rule
However, employers may still defend the case by arguing that the employee’s own conduct was the sole proximate cause of the injury. Stripping away these defenses significantly levels the playing field for injured workers.
What Do You Have to Prove in a Non-Subscriber Case?
You must show that the employer was negligent and that negligence caused your injury. The standard is lower than in many states because key employer defenses are removed by statute.
To succeed in a non-subscriber claim, you generally need to establish that:
1. Your employer owed you a duty of care
2. The employer breached that duty through negligent conduct
3. That breach directly caused your injury
4. You suffered damages as a result
Negligence in workplace settings can take many forms, including inadequate training, unsafe equipment, failure to follow OSHA standards, or ignoring known hazards. In Houston’s oil and gas, construction, and transportation industries, these failures happen regularly and the consequences can be severe.
What Compensation Can You Recover?
In a non-subscriber lawsuit, you may recover medical expenses, lost wages, pain and suffering, and other damages, amounts that often exceed what workers’ comp would have paid.
Unlike workers’ compensation benefits, which are capped and formula-driven, a civil lawsuit allows you to seek full compensation for the actual harm you suffered. That can include:
- Past and future medical bills
- Lost income and diminished earning capacity
- Physical pain and mental anguish
- Disfigurement or permanent disability
There is no set formula. The strength of the evidence and the facts of your case determine the outcome.
What About the Statute of Limitations?
In Texas, most personal injury claims must be filed within two years of the date of the injury under Texas Civil Practice and Remedies Code Section 16.003.
Waiting too long is one of the most common ways injured workers lose their right to recover. Two years may sound like enough time, but building a strong case takes time, and evidence disappears fast. Witness memories fade. Surveillance footage gets overwritten. Equipment gets repaired or replaced.
If you were hurt in Houston and your employer does not carry workers’ comp, starting the legal process early gives your case the foundation it needs.
Does Your Employer Have to Tell You They’re a Non-Subscriber?
Yes. Texas requires non-subscriber employers to provide notice to employees at the time of hire and to post required notices in the workplace informing employees that they do not carry workers’ compensation insurance.
Under Texas Labor Code Section 406.005, non-subscribing employers must post a notice in the workplace and provide written notice to employees at the time of hiring. If your employer failed to do this, that failure may itself be relevant to your claim.
Check your onboarding documents and look for any posted notices at your worksite. If you are unsure whether your employer is a non-subscriber, the TDI-DWC maintains records of employer coverage elections that can be verified.
Hurt at Work in Houston? The Alfred Firm Is Ready to Work for You.
At The Alfred Firm, we handle non-subscriber injury cases for Houston workers who have been left without a safety net. Our approach is straightforward: we do the heavy lifting so you can focus on recovering. That is not just how we work. We do the Work, and we take that seriously on behalf of every client we represent.
If you were injured on the job and are unsure about your employer’s coverage status, call us at 713-489-1875 or contact us to schedule a consultation. You deserve to know exactly where you stand.
