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Texas Workers' Compensation Requirements
At a glance
The details
Only US state where private employers may fully opt out ('non-subscribers'). Non-subscribers must notify employees, file annual notice with TDI, and face negligence lawsuits without WC liability cap. Public entities must participate.
Going without coverage ("non-subscriber")
Texas employers may lawfully skip WC, but injured employees can sue for negligence without the normal WC liability protections — most businesses elect some coverage anyway. Verify obligations with the official source before deciding.
If a claim happens: benefit amounts in Texas
TIBs = 70% of AWW difference; FY2027 (10/01/26-09/30/27) max $1,314 / min $197 per TDI table (SAWW $1,314.32). FY2026 was $1,271 — outdated listings still show this Medical: Lifetime medical care for the work-related injury (no dollar cap in TX system). Death: Death benefits = 75% of AWW difference to eligible survivors, max $1,314/wk (FY2027); lifetime for spouses of first responders regardless of remarriage; burial benefit separate (see TDI deathben page). Rate cycle: adjusts 10/01 each year. All states' benefit rates →
FAQ
Do I need workers' compensation in Texas?
Texas has no law requiring private employers to carry workers' compensation — one of only two such states (with South Dakota). Electing to go without carries significant legal risk.
What about construction businesses in Texas?
Construction businesses follow the elective rules. See details below for industry nuances.
What if I don't carry required coverage in Texas?
Penalties vary by state and can include per-employee per-day fines, stop-work orders, and personal liability for injury claims. Check the official source below for Texas's current enforcement posture.
Official source: Texas Department of Insurance - Division of Workers' Compensation · Verified 2026-09-08 (official) · Compare all states · Construction rules · Farm rules