How Does Workers’ Comp Work In Texas? (2026)

Understanding Workers' Compensation in Texas

For workers in any industry, it’s essential to know how workers’ compensation in Texas functions, especially if you get hurt or ill on the job. This is a type of no-fault insurance that your employer carries to address medical expenses and lost wages for employees who get injured or sick performing work duties.

It’s a type of no-fault insurance, so you don’t need to demonstrate that negligence or misconduct resulted in your losses, as you would when filing a personal injury claim.

Is Workers' Comp Required for Texas Employers?

Unlike all other states in the country, most private employers in Texas are not required to carry workers' compensation insurance. If the employer opts out of carrying this insurance, they must let their employees know they have done so. Public employers and those with government contracts must have this insurance, however.

Workers' Comp Coverage Options for Texas Employers

Employers who choose to purchase workers’ comp insurance have the option of selecting commercial insurance from licensed carriers. It’s also possible to self-insure.

This is an option best suited for large employers, and it will typically require approval from the Texas Department of Insurance. There are also self-insurance groups that a few small employers can form.

What Does Workers' Compensation Cover?

Workers’ compensation covers the medical expenses and lost wages associated with an on-the-job injury or illness. If an employee dies as a result of work-related injury or sickness, this type of insurance can also address funerary expenses.

Types of Income Benefits in Texas

Employees can obtain a few different types of income benefits through workers’ comp claims. These include:

• Temporary Income Benefits: You can receive a percentage of your wages if the injury prevents you from working for at least seven days.
• Impairment Income Benefits: These benefits start after you reach maximum medical improvement and depend on the impairment rating offered by a doctor.
• Supplemental Income Benefits: You may receive these after impairment income benefits end if you’ve been given an impairment rating of 15% or more, are earning less than 80% of your pre-injury wage or have not been able to return to work.
• Lifetime Income Benefits: These address severe and permanent injuries, like blindness, the loss of two limbs or spinal injuries.

The dependents of employees who die from work-related illnesses or injuries may be entitled to some income benefits, too.

Filing a Workers' Comp Claim in Texas

So how does workers’ comp work in Texas if you do need to file a claim? To file for workers’ compensation, you must get medical assistance promptly. You also need to let your employer know that you suffered an injury. You must do this within 30 days.

Your employer will give you the appropriate forms to file, including the Employee's Claim for Compensation for a Work-Related Injury or Occupational Disease. You then need to submit the form within one year of the injury. If you don’t do so, you can lose your chance of obtaining compensation.

Risks of Opting Out of Workers' Comp

Employers who do not carry workers’ compensation insurance could end up facing lawsuits if a worker gets hurt on the job. This is a serious risk that could cripple companies.

Lawsuits that stem from these types of injuries aim to recover both economic and non-economic damages, including pain and suffering. That is not the case with workers’ comp, so lawsuits can inevitably cost an employer more.

Return-to-Work Programs After an Injury

Return-to-work programs help employees who have suffered injuries or illnesses return to work sooner while ensuring they are safe. These programs provide modified duties and medical monitoring to minimize income loss.

Employers have to offer a written job offer that clearly outlines the modified duties the employee will perform while in the program. Employees must stay in touch with their employer and follow all medical advice at work and at home. An employee who refuses an appropriate return-to-work program offer may jeopardize their rights to further benefits.

Get Matched With a Skilled Texas Workers' Comp Lawyer

If you have suffered work-related injuries or illnesses that prevent you from working, Texas allows you to apply for workers’ compensation. These benefits allow you to get coverage for medical bills while also recovering some of the income you lost.

Applying for workers’ comp is not easy, however. One of the best things you can do is to hire an attorney.

At ConsumerShield, we can connect you with trusted local lawyers who can represent you and aggressively fight for your rights. Contact us to speak with our team today.