Workers' Compensation Information for Employers
Frequently Asked Questions
- As an employer in Texas, do I have to buy workers' compensation insurance for my employees?
- What are the requirements to become Certified Self-Insured by the Texas Department of Insurance, Division of Workers' Compensation?
- What safety training and accident prevention services are available to me?
- What safety and health regulations apply to Texas employers?
- Can I find out if a person has had previous workers' compensation injuries?
- One of my employees was injured. What do I do?
- My workers' compensation insurance company is paying a claim and I do not agree that the injury happened at work. How can I dispute the claim?
- I paid my employee while they were off work. Can I get my money back?
- When is a workplace incident that causes injury to one of my employees not payable under my workers' compensation policy?
- Why should my business have an early Return to Work program?
- How does an employee report an unsafe work environment?
- How can I find workplace injury and illness data for my type of business or industry?
- What is fraud under Texas workers' compensation?
1. As an employer in Texas, do I have to buy workers' compensation insurance for my employees?
In most cases, workers' compensation insurance is not required in Texas.
Read more about Workers' Compensation Coverage.
Related Questions
Are there reporting requirements regarding whether or not I have workers' compensation insurance?
If you buy workers' compensation insurance, you are considered a "subscriber." As a subscriber, you will be required to post a notice at your work place that provides your insurance carrier's name, information regarding the Ombudsman program at the Texas Department of Insurance, Division of Workers' Compensation (Division), and a contact number for reporting unsafe work conditions. This notice must be placed in the employer's personnel office and in a prominent place where employees can see it regularly.
You are also required to give written notice of your coverage to new employees upon hire and inform them of their right to reject your workers' compensation coverage and retain their common law right for action in district court. If at any time your coverage lapses and then you obtain coverage again, you are required to give all employees this change of coverage information in writing.
Coverage Generally Elective (Section 406.002)
Notice to Employees Concerning Workers Compensation in Texas (Notice 6)
Covered and Non-covered Employer Notices to Employees (Rule 110.101)
If you do not carry workers' compensation insurance coverage, you are considered a "non-subscriber," and you must notify your employees and the Division that you do not have workers' compensation insurance.
Some employers who call themselves "self-insured" have actually opted out of the workers' compensation system. Instead, they are providing an alternate coverage that does not carry the same protections offered to employers that have purchased a workers' compensation policy or that are certified to self-insure by the Division.
Employer Notice of No Coverage or Termination of Coverage (DWC-5)
Notice to Employees Concerning Workers Compensation in Texas (Notice 5)
Non-covered Employer's Report of Occupational Injury or Illness (DWC-7)
Covered and Non-covered Employer Notices to Employees (Rule 110.101)
Coverage Generally Elective (Section 406.002)
Common-Law Defenses; Burden of Proof (Section 406.033)
Required Coverage for Certain Building or Construction Contractors (Section 406.096)
Are there other posting requirements for my workplace?
Various laws require employers to display several posters at the workplace. These posters are available, free of charge, from the applicable state and government agencies.
A list of Texas Workforce Commission, U.S. Department of Labor Wage and Hour, Occupational Safety and Health Administration, and U.S. Equal Employment Opportunity Commission required postings can be found on the Texas Workforce Commission's web site
What are the benefits of buying a workers' compensation insurance policy?
Having workers' compensation insurance will provide lost wages and medical benefits to your employees if they are injured on the job. Except in cases of gross negligence, workers' compensation insurance limits your liability if an employee brings suit against your business for damages.
For additional information, please review:
How do I purchase a workers' compensation insurance policy?
There are many insurance companies licensed to sell workers' compensation insurance. In addition, some employer's may have the option to be certified by the Division to self-insure.
For information about the costs and how to purchase workers' compensation insurance:
- the Texas Department of Insurance has information on its web site including a rate guide for comparison; or
- you may contact an insurance agent near you.
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2. What are the requirements to become Certified Self-Insured by the Texas Department of Insurance, Division of Workers' Compensation?
Large employers that want to self-insure must present evidence to the Division of a total unmodified workers' compensation insurance premium in Texas of at least $500,000. The employer must show sufficient financial strength and liquidity to ensure that all workers' compensation obligations incurred are met promptly. The employer must present a plan for claims administration by a qualified claims servicing contractor and demonstrate the existence of an effective safety program for each location that conducts business. For additional information, see Self Insurance Regulation or contact the Self Insurance Division at 1-800-372-7713, extension 4775.
A list of employer's that are currently self-insured can be found at:
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3. What safety training and accident prevention services are available to me?
Workers' compensation insurance companies are required to provide accident prevention services to its policyholders. Accident prevention services include surveys, consultations, recommendations, industrial hygiene/health services, claims history and accident analysis, and training. You should contact your carrier if you would like assistance in preventing workplace injuries. If you do not receive requested assistance from your carrier, you may report this to the Division at 1-800-372-7713 x4674.
In addition, the Division offers several safety and health resources to help employers with training and accident prevention needs, including:
- affordable regional and customized on-site training;
- free safety and health publications;
- free safety and health training video loans;
- safety and health update e-mail newsletter; and
- free safety and health consultations through the Occupational Safety and Health Consultation (OSHCON) program which provides free safety and health consultations to help employers with 250 or less employees per work site and less than 500 corporate-wide understand and comply with Occupational Safety and Health Administration (OSHA) regulations. OSHA provides safety and health services
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4. What safety and health regulations apply to Texas employers?
Depending on the type of business and the operations used, a number of State and Federal regulatory agencies have safety and health regulations that may apply to Texas employers.
For assistance in understanding the OSHA regulations and general information on other safety laws that may apply to your business, contact the Division's free safety and health consultation program, OSHCON, at 1-800-687-7080.
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5. Can I find out if a person has had previous workers? compensation injuries?
If you have workers' compensation insurance, you can file a Prospective Employment Authorization and Certification (DWC-156) with the Division to obtain general information about previous work related injuries. Information will only be provided if the applicant has had two or more injuries in the last five years. To obtain this information, you must have written permission from the applicant and have made a conditional offer of employment.
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6. One of my employees was injured. What do I do?
If you have workers' compensation coverage or are a certified self-insurer:
- File the Employer's First Report of Injury or Illness (DWC-1) with your insurance carrier within eight (8) days from the date your employee is unable to work due to the injury or immediately if the injury is an occupational disease or death.
- Provide a copy of the DWC-1 and Employee's Rights and Responsibilities to your employee at the time the DWC-1 is filed.
- Check with your insurance carrier to see what methods of reporting they have available to you.
If you do not have workers' compensation insurance coverage and have more than 4 employees:
- If you have a reportable injury, by the seventh day of each month, you are required to complete the Non-covered Employer's Report of Occupational Injury or Illness (DWC-7), to report all fatalities, occupational diseases of which the employer has knowledge, and all on-the-job injuries resulting in more than one day's absence from work for the month prior to the filing date. Mail the DWC-7 to the Division at:
Texas Department of Insurance, Division of Workers' Compensation
7551 Metro Center Drive, Ste 100, MS-93
Austin, Texas 78744-1669
Read more about Employer Rights and Responsibilities.
Related Question
How will I know if my injured worker is unable to work?
After your employee selects a treating doctor from the Division's Approved Doctor List and is examined, you should receive a copy of the Work Status Report (DWC-73) from the doctor that addresses your employee's work abilities.
If I complete the First Report of Injury (DWC-1 or DWC-7), does this fulfill OSHA reporting requirements?
In some cases, yes. However, not all workplace injuries are OSHA recordable, and some industries are exempt from OSHA record keeping. Contact the OSHCON program at 1-800-687-7080 for requirements specific to your business.
Where can I find my North American Industry Classification System (NAICS) code formerly Standard Industrial Classification (SIC) Code required on the DWC-1 blocks 45 and 46 for covered employers and on the DWC-7, blocks 8 and 11 for non-covered employers?
Your NAICS (formerly SIC) code identifies the classification of your business and is assigned by the Texas Workforce Commission. Your business may be assigned multiple codes depending on the processes and operations involved at your business. The numbers may be located in either Block 5 of your unemployment Quarterly Report (Form C-3) from the Texas Workforce Commission or in the left margin of the Bureau of Labor Statistics (BLS) 3020 (multiple worksite attachment) for employers with multiple NAICS codes.
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7. My workers' compensation insurance carrier is paying a claim and I do not agree that the injury happened at work. How can I dispute the claim?
You should try to work with your carrier and provide any information or documentation you have to support your position. If the carrier continues to accept liability for the claim, you can file an Employer's Contest of Compensability (DWC-4) and a Request for a Benefit Review Conference (DWC-45) with the Division. You will be required to attend a Benefit Review Conference to present your evidence at your local DWC office. For more information, please contact Customer Assistance at 1-800-252-7031.
Dispute Resolution
DWC Field Offices
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8. I paid my employee while they were off work. Can I get my money back?
You may be reimbursed for the benefits you paid depending on the type of payments made and when the payments were issued.
An employer is eligible for reimbursement of benefits the employer has paid when:
- the carrier has denied liability for the injury and you do not agree; or
- the carrier has not completed its initial investigation. (Note: an employer is only allowed to pay benefits in this situation for the first two weeks after the injury).
The employer must file the Employer's Report for Reimbursement of Voluntary Payment (DWC-2) detailing the total amount of benefits paid up to the point when the carrier notified the employer that they have accepted liability for the injury and have begun paying benefits. The carrier must reimburse the employer for the amount of benefits the carrier would have paid. If the employer paid benefits in excess of what the carrier owes in benefits, the excessive amount is not reimbursable unless there is a written agreement between the injured employee and the employer that those benefits can be recouped from future impairment income benefits, if any.
An employer is not eligible for reimbursement of wages paid to continue the employee's full salary after an injury. An employer must ensure the carrier is aware that the employer is paying full salary to the worker to prevent the carrier from paying temporary income benefits (lost wage benefits) for the same time period. An employer who pays salary supplementation to supplement the difference between the 70% or 75% of the employee's average weekly wage that is being paid by the carrier is not entitled to and may not seek reimbursement from the employee or the carrier.
Reimbursable Employer Payments; Salary Continuation; Offset Against Income Benefits; Limits (Section 408.003)
Definitions for Temporary Income Benefits Terms (Rule 129.1)
Non-Reimbursable Employer Payments (Rule 129.7)
Read more about Reimbursement of Voluntary Payments Made by an Employer
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9. When is a workplace incident that causes injury to one of my employees not payable under my workers' compensation policy?
An insurance carrier is not liable for benefits if:
- your employee was injured while in a state of intoxication;
- the injury was caused by the employee's willful attempt to injure himself or unlawfully injure another person;
- a person that is not your employee injures your employee for a personal reason;
- your employee was injured while participating in a voluntary off-duty recreation, social, or athletic activity that was not part of the employee's duties;
- the injury arose out of an act of God; or
- horseplay caused the injury.
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10. Why should my business have an early Return to Work program?
An early Return to Work program makes good business sense for many reasons. It allows your employee to return to work, within his or her restrictions, as soon as it is medically safe. By having your employee back at work, your business can:
- Reduce costs. With an employee's lost time from work come related business costs (overtime, temporary workers) and workers' compensation costs (increased premiums, income benefits, medical benefits).
- Reduce employee turnover. The cost to replace an employee is higher than you might think - up to 1.5 times their annual salary. In addition, it can take a new employee more than 13 months to become efficient at their job.
- Maintain productivity. Your injured worker is an experienced and skilled worker, and you do not want to lose that resource. Although they may not be able to do their regular job right away, the goal of early return to work is to get that employee back to work sooner, and eventually back to their regular job.
- Increase employee morale. Your injured worker and their coworkers will know that your business sees them as a valuable resource, which will make them want to return to their regular job as soon as medically possible after a work related injury.
Related Questions
Am I required to hold my employee's job open for them after they are injured?
The Division encourages employers to provide a Return To Work program. However, employers are not required under the Texas Workers' Compensation Act to provide employment after an injury occurs.
As an employer how do I develop a Return to Work program?
Please see DWC's resources for developing a Return to Work program.
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11. Can my employees report an unsafe work environment?
If your employees believe your work environment is unsafe, they can contact the Safety Violations Hotline at 1-800-452-9595 or by e-mail. Reports are taken in both English and Spanish and can be made anonymously.
Read more about notice responsibilities.
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12. How can I find workplace injury and illness data for my type of business or industry?
Claims data, Bureau of Labor Statistics Annual Survey of Occupational Injuries, and Census of Fatal Occupational Injuries data is collected by the Division. Interested parties can create customized reports from the online database, or choose from various static data reports. For more information, contact DWC's Safety Information Systems program at 512-800-372-7713 x4651.
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13. What is fraud under Texas workers' compensation?
Fraud occurs when a person knowingly or intentionally conceals, misrepresents, or makes a false statement to either deny or obtain workers' compensation benefits or insurance coverage, or otherwise profit from the deceit.
DWC investigators are available for presentations that include tips on identifying fraud, making fraud referrals, as well as the investigation process and confidentiality. To request a presentation for your organization, please contact the Speakers Bureau at (512) 804-4578, or by fax at (512) 804-4201.
For additional information on Texas workers' compensation fraud, visit the Fraud and Employer Coverage/Rights and Responsibilities pages.
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For more information contact: Webstaff@tdi.state.tx.us
Texas Department of Insurance
