The Basics of a Non-Subscriber Claim in Texas

What is a Non-Subscriber Claim?

Definition. A non-subscriber claim is when an injured employee is not covered by a workers’ compensation insurance policy owned by the employer.

Generally, workers’ compensation is a state-regulated insurance system that is supposed to ensure medical bills and some lost wages are paid for employees injured on the job. Since 1913, Texas has given employers a choice on whether they enroll in a workers’ compensation insurance plan.  Thus, Texas is unlike most states where carrying workers’ comp insurance is mandatory.  Texas employers can and do opt out of providing workers’ compensation insurance.  Such employers are referred to as “non-subscriber” employers.  Employees can opt out of workers’ compensation coverage, too, but an employee’s decision to opt-out does not affect their employer’s status as a subscriber or non-subscriber.  See Texas Labor Code § 406.034.  

Non-subscriber employers lose crucial legal shields, exposing themselves to potentially massive lawsuits from injured employees.  Generally, non-subscriber employers have no immunity against most employee injury lawsuits.  Moreover, non-subscribers lose key defenses, such as contributory negligence, assumption of risk, and co-employee negligence (however, such defenses are available to an employer when their employee opts out of workers’ compensation).  This means if an employee gets hurt on the job due to any negligence caused by their non-subscriber employer, the gates open wide for potential claims covering everything from medical expenses, lost wages, pain and suffering, mental anguish, disfigurement, and punitive damages.  

Example of a Non-Subscriber Claim Versus a Subscriber Claim

Types of Damages and Amounts Recoverable Are Very Different

Imagine two employees who both work as a Forklift Operator.  The first employee works for FedEx who is covered by a workers’ compensation insurance policy.  The second employee works for R+L Carriers who does not have a workers’ compensation insurance policy and is considered a non-subscriber.  Let’s say both of these employees are injured on the job when the loading truck moves while the forklift is still in the back of the trailer, causing them significant injuries when they fell out of the trailer. The status of the employer will have an impact on the damages that the employees are entitled to recover and the defenses that the employers can use. 

The FedEx employee’s claim would be entirely resolved through the workers’ compensation insurance plan.  Thus, the only compensation this employee could recover would be for their medical expenses and some lost wages.

In contrast, the R+L Carriers employee’s claim would not have the same restrictions on their claim.  Not only could they recover for their medical expenses and lost wages, they would also be allowed to recover for their pain and suffering, mental anguish, disfigurement, and punitive damages.  Further, R+L Carriers would not be able to defend the case by arguing contributory negligence, assumption of risk, and co-employee negligence. 

Thus, the potential claims and damages against a non-subscriber employer is significantly higher when compared to an employer who is a subscriber to a workers’ compensation plan. 

How many Texas Non-Subscriber Cases Are there?

Approximately one-third of Texas employers are nonsubscribers.  As a result, there are almost 75,000 non-subscriber claims every year in Texas.  Non-subscriber cases will continue to happen as long as Texas allows employers to opt out of carrying workers’ compensation insurance. 

How to Know if You Have a Texas Non-Subscriber Claim?

Injured employees can check if their employer was covered by a Workers Compensation insurance plan via the Texas Department of Insurance – Division of Workers Compensation online portal.  In addition, most employers that do not have workers’ compensation coverage choose to establish a private, no fault disability program that pays injured workers medical expenses and at least a portion of lost wages.  Most of these plans are provided to employees are part of the employee on-boarding process. 

What Large Texas Employers Are Known Non-Subscribers?

In Texas, some of the largest employers who are non-subscribers to the state’s workers’ compensation system include prominent companies such as Amazon, McDonald’s, Walmart, Home Depot, HEB, Dollar General, Target, Kroger, Academy Sports, R+L Carriers, ExxonMobil, AT&T, Baker Hughes, and Schlumberger.  These companies have chosen to opt out of the traditional workers’ compensation system and instead offer their own plans or coverage options for workplace injuries.

How Much Are Non-Subscriber Cases Worth?

Non-subscriber cases can range from a few thousands to millions, depending on the complexity and severity of the case.  Generally, an injured employee can recover economic damages, such as medical bills, lost wages, and future medical expenses and also non-economic damages such as pain and suffering, disability, disfigurement, and loss of enjoyment of life. 

For example, our firm recently reached a confidential settlement with McDonald’s when a manager was severely burned by boiling hot water that was dropped on her when a fellow employee was attempting to change the morning coffee to tea.  The burns covered almost a third of her body and resulted in permanent scarring to the manger’s chest and stomach. 

The exact value of a non-subscriber case depends on several key factors.  In many instances, verdicts and settlements have reached amounts in the millions of dollars.  Non-subscriber cases often involve significant physical injuries leading to higher compensation for medical expenses, lost wages, and pain and suffering.  If you have been involved in a workplace accident, it’s crucial to consult with experienced Texas Non-subscriber attorneys who can assess the potential value of your case and fight for the maximum compensation. 

How much does it cost to hire a lawyer for a non-subscriber case?

Most non-subscriber cases are handled on a contingency fee basis, which means you only pay if you win. Morrow & Sheppard LLP offers a free consultation to evaluate your case, discuss your legal options, and explain how our contingency fee arrangement works.  You only pay if we win your case.  Reach out to us today to schedule your free consultation.

Award Winning Texas Non-Subscriber Attorneys

At Morrow and Sheppard, our attorneys have obtained multi-million-dollar verdicts and settlements for people injured in Texas non-subscriber cases. If you have been injured while on the job, let one of the attorneys at Morrow & Sheppard LLP determine if your employer is considered a non-subscriber so that you can maximize any potential recovery for your injuries.  Contact Morrow & Sheppard LLP at (800) 489-2216 for a free, confidential consultation.