Is Workers’ Compensation Mandatory in Texas?
In Texas, workers’ compensation coverage is not required by the state. However, small business owners could still be required to cover the cost of treating employee injuries following a workplace accident. And although the state does not require workers’ comp, construction companies that work on contract for governmental entities must have workers’ compensation coverage.
Additionally, if a worker is injured on the job, they have a legal right to file a workers’ compensation claim if they have a legitimate case and the employer refuses to pay benefits. Employers who do choose to carry workers’ comp must inform employees of the coverage and post a notice in the workplace with information about the carrier. Likewise, employers who do not obtain workers’ compensation insurance must report to the state that they have declined coverage and still must report any workplace injuries.