What is a Non-Subscriber?
In most other states, legislation requires that all employers subscribe to the government's workers’ compensation. This form of insurance provides their workers medical and income benefits in the case of an on the job injury. Texas law, however, gives its employers another option.
Here in Texas, a company or business can opt out of workers’ compensation, designating themselves as a non-subscriber. There are pros and cons a business must consider before deciding, and it is important that employees stay abreast of any changes and fully aware of their rights.
Definition of a Non-Subscriber
A non-subscriber is a business that has decided not to purchase state-regulated workers’ compensation insurance. Typically, workers’ compensation covers an employee’s medical expenses and lost income, regardless of who is at fault in causing the accident. Unlike many other states, Texas companies are not required to subscribe to the workers’ compensation program, and many employers use this opportunity to their advantage in an effort to shave costs. Although this gives employers the chance to create a personalized compensation plan, many companies instead choose not to provide any post-incident insurance benefits, leaving employees unprotected after on-the-job injury.
Texas law penalizes non-subscribers by giving employees an advantageous path to proving liability against the employer related to acts of negligence that occurred at work. In short, the barrier in proving negligence is lessened and the employer also can’t assert that you aided in causing your injuries. As long as your attorney can show the employer, or their agent or representative, had any degree of fault in causing your injuries, then they are held fully responsible. In the case of a lawsuit needing to be opened against a non-subscriber, click here or call (866)-434-0014 for more information on how to go about the process.
What is Workers' Compensation?
Workers' compensation is a government-regulated insurance program designed to provide medical treatment and a portion of a employees lost income after an injury occurs while at work. As previously mentioned, Texas does not require private sector companies to purchase workers' compensation insurance coverage for their employees. And the employers that choose to not participate in the state-regulated insurance program are referred to as "non-subscribers".
Workers compensation can only be purchased through a company licensed to provide workers compensation, which leaves many injured workers left wondering, "Does my employer actually have workers comp, and am I provided a real version of workers' compensation?" These questions are harder to employees to find the answer to, but an attorney can assist in conducting an official search through the Texas Department of Insurance Coverage Verification portals. Oftentimes, employees present to have subscribed to workers' comp, when in actuality they purchased from an unlicensed company, or are attempting to circumvent state law by paying for medical costs our of pocket.
Employers that purchase alternative coverages do not have the immunities afforded to others and can be sued by injured workers for pain and suffering, future costs, lost of consortium, lost economic opportunities, punitive damages, and more.
Alternative Insurance Programs Are Still Considered Non-Subscribers
Sometimes, non-subscribers create alternative insurance programs by purchasing accident and health insurance policies, or extending employer indemnification to workers to pay partial wage reimbursement. These substitutes are often confusing for hurt workers, because they appear like the state's official insurance program. However, Texas does not recognize these alternative policies or surplus lines and the Texas Department of Insurance strictly prohibits employers and their third-party administrators from even suggesting that their self-created programs and substitutes for workers' comp. The reason why the State is so strict on companies that chose to opt-out of the program is because the alternative insurance benefits limit how long an employee receives lost wages and often cap their treatment cost reimbursement. The State of Texas governs the benefits for companies that are subscribers, while a court or arbitration board is able to govern the polices of non-subscribers.
Are Non-Subscribers Regulated by Law?
Yes, while non-subscribers unfortunately have exemption from many regulations, they are still required to adhere to certain terms and conditions that are observed by the government. Still though, many attempt to get away with denying claims or a workers' constitutional rights, so the way to recover for the unjust actions is through a civil lawsuit. Employees often need to retain an non-subscriber accident attorney to protected their rights in these predicaments. The difference in the amount and specific coverage that non-subscribers have to provide often leaves injured employees to handle their healthcare on their own. Surmounting treatment costs and an inability work can often be detrimental to a worker and their family.
There are systems in place that keep a watchful eye on non-subscribers and ensure they maintain safety procedures such as OSHA (Occupational Health and Safety Administration) and ERISA (The Employee Retirement Income Security Act). Businesses are also required to file a DWC-5 with the Texas Department of Insurance to try to ensure it is on record that they are non-subscribers and to prevent any injuries from going off-book.
What Industries Can Elect To Opt-Out Of Workers Compensation?
Any industry other than governmental entities and companies working on state construction projects can opt-out of participating in the workers’ compensation program. Because Texas has does not mandate employers to have workers' comp, private employers in every industry choose to forgo coverage in an attempt to save thousands, or even million of dollars each year. Even large retailers like Walmart, HEB, Kroger's, Hobby Lobby, Target, Nordstrom's, and Whole Foods are non-subscribers.
Can I File a Lawsuit Against a Non-Subscriber?
Yes, injured employees can sue a non-subscriber for negligence and gross negligence for their physical and economic. This civil lawsuit avails you of the full range of actual damages described in Chapter 41 of the Texas Civil Practices and Remedies Code, including compensation for pain and suffering, mental distress, disfigurement, loss of enjoyment, loss of income, and also lost opportunities. Click here to read more related information of what to do if you're employer doesn't have workers' comp in Texas.
Are Non-Subscribers Penalized For Not Obtaining Workers’ Comp?
Yes. Although there are no state-enforced penalties for companies failing to provide their employees with workers’ comp, injured workers are provided perks when filing civil lawsuits against these companies. For example, a business is not allowed to blame the injury entirely on the employee, even if it was predominantly the employee’s fault. As long as there is a 1% chance that the business may have contributed to the injury, then they are fully liable for the resulting damages. An employer also cannot use the excuse that the employee knew the risk of the job beforehand and proceeded anyway. This is called an “assumption of the risk” defense and is not allowed to be used by a non-subscriber employer. The employer will also be held responsible even if a liability waiver form was signed before the accident. If you were harmed while working for a non-subscriber, call (866-434-0014) to learn your rights today.
The Types of Injuries Non-Subscribers Will Cover
In Texas, non-subscriber employees are required to compensate employees for any damages related to the employer's negligence. The range of compensation possible to workplace injury victims in this predicament includes the following:
Emotional pain due to the injury
Wages lost that need reimbursement after the injury
Medical costs surrounding the injury
How Much Does A Non-Subscriber Lawyer Cost?
The Texas Workplace Injury Lawyers at Sneed & Mitchell LLP do not charge any upfront costs. Instead the attorneys fees are paid on a contingency fee basis, meaning that our firm is only paid if we are successful in the handling of your claim. Do not delay in seeking legal advice about a worksite injury claim involving a non-subscribing company. A Statute of Limitations applies in worksite injury claims, you have to file before the deadline in order to protect your right to assert a claim for damages.
Make Sure You Are Protected With Legal Representation
A Texas workplace injury attorney is the best person to reach out to if you are injured on-site while working for a non-subscriber. Even the smallest amount of negligence on an employer’s part can allow for a lawsuit to be filed against them, as long as it is proven that the work conditions contributed to the cause of the injury. It’s not always easy to win non-subscriber cases like these alone, which is why employees should Sneed & Mitchell LLP to have the case reviewed.