If you’ve been hurt on the job in Texas, you may be wondering whether you have to file a workers’ compensation claim or if other options are available.
Many Texans mistakenly believe that every work injury must go through workers’ comp. In reality, not all workers are covered by workers’ compensation – especially if you’re an independent contractor or your employer doesn’t subscribe to the Texas workers’ comp system. Understanding the difference between a workers’ comp claim and a third-party injury claim can help you protect your rights and get the compensation you deserve.
This page will explain Texas workers’ comp, who qualifies (and who doesn’t), when a third-party lawsuit might be your best option, and why consulting a work injury attorney is so important.
Workers’ compensation is a state-regulated insurance program that provides benefits to employees who are injured or become ill in the course of their job. It’s essentially a safety net: if you’re hurt at work and your employer has workers’ comp insurance, that insurance can pay for your medical bills and a portion of your lost wages while you recover. Workers’ comp is generally a “no-fault” system, meaning you can receive benefits without having to prove your employer was negligent. In exchange, employees usually give up the right to sue their employer for the injury. This trade-off aims to ensure injured workers get some support quickly, while limiting lawsuits against employers.
However, workers’ comp benefits are limited. In Texas, workers’ comp will cover necessary medical treatment and part of your lost income, but it does not cover things like pain and suffering or other non-economic damages. It’s also not a full wage replacement – typically it pays a percentage of your average weekly wage up to state-set limits. So, while workers’ comp can be crucial for basic support, it won’t fully compensate an injured worker for all the ways a serious injury might affect their life.
Texas is unique in how it handles workers’ comp. Texas is the only state that allows private employers to opt out of carrying workers’ compensation insurance. Employers who carry workers’ comp are often called “subscribers,” and those who don’t are known as “non-subscribers.” If your employer is a subscriber, any work-related injuries should be reported and handled through their workers’ comp insurance. If your employer is a non-subscriber, they have no workers’ comp coverage – meaning if you’re injured on the job, workers’ comp isn’t an option at all. (We’ll discuss in a moment what that means for your rights as an injured worker.)
Workers’ compensation in Texas only covers employees of companies that carry a workers’ comp policy. It does not automatically cover everyone who happens to be working. Understanding whether you’re considered an “employee” or not is critical:
Employees of a Subscriber: If you are a regular employee (full-time or part-time) of an employer that has workers’ comp insurance, you generally qualify for workers’ comp benefits if injured on the job. This applies to most traditional employment relationships. You would report your injury to your employer and file a workers’ comp claim through the Texas Department of Insurance system. (Exception: Some occupations like certain domestic workers or small farm labor might be exempt, but most employees are covered when the employer subscribes.)
Employees of a Non-Subscriber: If your employer opts out of workers’ comp (becoming a non-subscriber), you as an employee are not covered by workers’ comp at all. In this case, you cannot file a workers’ comp claim because there is no policy in place. Your employer might offer an alternative injury benefit plan, but many do not. Instead, your remedy for a work injury may be to file a lawsuit against your employer for negligence, since you don’t have the workers’ comp system to rely on. (Texas law, in fact, limits the defenses available to non-subscriber employers if they are sued by an injured worker, making it easier for employees to win a negligence lawsuit in these situations.)
Independent Contractors: Generally, if you are an independent contractor, you are not considered an employee for workers’ comp purposes. This means the company hiring you is not required to cover you under their workers’ comp insurance. For example, if you’re a subcontractor, a gig worker, or working on a 1099 contract basis, you typically do not qualify for workers’ comp benefits through the company you’re doing work for. There are a couple of exceptions – occasionally a contract might explicitly include workers’ comp coverage, or a general contractor on a project might provide coverage for all workers on a site – but those are special arrangements. In most cases, independent contractors are on their own when it comes to injury coverage. You would not file a workers’ comp claim with the hiring company if you get hurt, because legally you’re not their “employee” under the workers’ comp law.
Other Non-Employees: Likewise, if you’re volunteering or otherwise not on the payroll as an employee, you wouldn’t be covered by workers’ comp. Only actual employees (with wages, W-2, etc.) of a subscribing employer are routinely covered.
Important: Sometimes the line between “employee” and “independent contractor” isn’t clear. Companies may misclassify workers as independent contractors to avoid paying for benefits like workers’ comp. Just because your employer calls you a contractor doesn’t necessarily mean you legally are one. Texas uses several factors (like how much control the company has over your work, your schedule, training, etc.) to determine your true status. If you’ve been hurt and are being denied workers’ comp because the company says you’re a contractor, consider speaking with an attorney. You might actually be an employee under the law and thus entitled to workers’ comp benefits, or alternatively, you may need to pursue a different route for compensation. Don’t assume you have no rights – get legal advice on your status if it’s in doubt.
It’s worth noting that Texas does not impose a statutory cap on contingency fees for personal injury cases (unlike some states that limit attorney percentages by law). Thus, the 33–40% range is a generally accepted standard rather than a legal maximum. In complex or high-risk cases, some lawyers might negotiate a higher percentage (or require a larger cut if a case goes through an appeal), but one-third to 40% is the norm in 2025 for car accident claims in Texas.
So, what happens if you are truly an independent contractor (or otherwise not covered by workers’ comp) and you get hurt on the job? This is where a lot of confusion exists. The key thing to remember is: You still have the right to seek compensation for your injuries – but not through workers’ comp. Instead, you would pursue a personal injury claim, often called a third-party work injury claim.
As an independent contractor injured on a job, you can file an injury lawsuit for negligence just like any member of the public who is harmed by someone else’s actions. Your claim might be against the company that hired you (since they aren’t your “employer” for comp purposes, they can be treated as a liable third party), or against another negligent party involved. You would need to show that this party’s negligence caused your injury – for example, that the company failed to provide a safe environment or that another contractor on the site was careless.
If successful, you can recover damages to cover medical expenses, lost income, and also non-economic losses like pain and suffering and reduced quality of life. These are types of compensation that workers’ comp would never pay. In a lawsuit, there’s no preset limit like comp has; you can aim for full compensation for everything you’ve suffered, though you do have to prove fault.
Let’s break down common situations where an injured worker might bypass workers’ comp and file a third-party claim:
You’re a contractor on a worksite accident: Suppose you’re an electrician hired as an independent contractor on a construction site. If you suffer an injury because the general contractor didn’t follow safety protocols (maybe they left live wires exposed or unsafe equipment in use), you could sue the general contractor for negligence. Since you’re not their employee, workers’ comp doesn’t apply – meaning you have the right to hold them accountable in court for the unsafe conditions.
Injury caused by a third party (not your direct boss): Even if you are an employee with workers’ comp, some accidents are caused by someone other than your employer. For instance, you’re driving as part of your job and another driver crashes into you, or you’re working at a client’s property and a hazardous condition there injures you. In these cases, that at-fault third party can be sued. Workers’ comp might cover some of your immediate needs, but it won’t compensate for everything. A third-party claim against the driver or property owner can seek additional damages beyond what comp offers.
Defective equipment or product: If a tool or machine you were using at work malfunctioned due to a defect and injured you, you could have a product liability claim against the manufacturer. For example, a power saw with a design flaw could cause a serious accident – the maker of the saw (and possibly the distributor) can be liable for your injuries. This is independent of workers’ comp. In Texas, even employees covered by comp can sue a manufacturer of defective equipment, and if you’re a contractor, this might be one of your primary avenues for recovery.
Employer is a non-subscriber: As mentioned, if your employer doesn’t have workers’ comp, they’ve essentially forfeited the protection from lawsuits. If you’re hurt and they were negligent, you can file a work injury lawsuit directly against the employer. This is technically not a “third-party” claim (since it’s against your direct boss), but it functions similarly to one. Texas law even prohibits non-subscriber employers from using certain defenses (like blaming the injury on a coworker or claiming you knew the risk) in order to help injured workers recover. In short, a non-subscriber employer can be sued and held fully responsible for the harm you suffered. Many construction and industrial accident cases in Texas proceed this way when comp isn’t in place.
In all these scenarios, workers’ comp is not your only or exclusive remedy. In fact, if you’re not covered by comp, these lawsuits become your main path to get compensated. And even if you are covered, pursuing a third-party claim in addition can greatly increase the total recovery available to you, because you can seek categories of damages that comp leaves out.
Workplace injury cases can get complicated, especially when it’s unclear whether workers’ comp applies or if a third-party is at fault. Consulting an experienced Texas work injury attorney is crucial for several reasons:
Determine Your Status and Options: A lawyer can help figure out whether you’re legally an employee or an independent contractor, which is the first step in knowing your rights. If you should have been covered by workers’ comp, your attorney can help you pursue those benefits. If you’re not covered, an attorney will identify what other claims you can make. This is vital because filing the wrong type of claim (for example, chasing workers’ comp when you should be suing a negligent party, or vice versa) could waste precious time. In Texas, there are deadlines (statutes of limitations) for both comp claims and injury lawsuits, so you want to proceed correctly from the start.
Identifying All Liable Parties: Attorneys experienced in work injuries know that sometimes more than one party is responsible. Perhaps an equipment manufacturer, a subcontractor, and a property owner all share blame for an accident. A work injury lawyer will investigate the accident thoroughly to find every potential source of compensation. This ensures you’re not leaving money on the table that could aid in your recovery.
Navigating the Legal Maze: If you do have a workers’ comp claim, there are procedures and paperwork to follow through the Texas Department of Insurance, Division of Workers’ Compensation. If you have a lawsuit instead, you’ll need to gather evidence of negligence, possibly deal with corporate defendants or insurance companies, and maybe even take the case to trial. A legal advocate can handle these complexities for you. They can also help calculate the full value of your claim – including future medical needs or long-term disability – so you don’t settle for less than you need.
Protecting Your Rights: Sadly, when workers are injured, some employers or insurance adjusters might give misleading information (intentionally or not) about what you’re entitled to. For example, an employer might incorrectly insist you must file for workers’ comp even if they know you’re not covered, or they might downplay the possibility of a lawsuit. Having your own attorney means you have someone looking out for your best interests and making sure your case is handled properly. They can prevent you from being taken advantage of or from making mistakes that could undermine your claim.
In summary, a work injury attorney provides clarity, guidance, and aggressive representation to get you the maximum compensation available by law. When you’re injured and possibly unable to work, the last thing you need is confusion over legal details – let a professional handle that, so you can focus on healing.
Jim Adler & Associates is a Texas law firm with decades of experience helping injured workers and their families. We understand the nuances of Texas workers’ compensation and third-party injury claims inside and out. Whether you were hurt working for a non-subscriber employer, injured as a contractor, or hurt on the job by a third party’s negligence, our team has likely handled a case very similar to yours. Here’s how we can assist:
Expert Evaluation of Your Case: When you contact us, we’ll start with a free consultation to hear what happened and review the facts. Our attorneys will quickly assess what type of claim(s) you can pursue. If you’re unsure whether you fall under workers’ comp or not, we’ll help figure that out. We’ve seen many situations where a client didn’t realize they had a third-party claim on top of a comp claim, or vice versa. Our goal is to map out all possible avenues for compensation for you from the get-go.
Aggressive Pursuit of Compensation: Once we determine the best path, Jim Adler & Associates will take action immediately. If it’s a workers’ comp matter, we help with filing the claim and fighting any denials or delays so you get your benefits. If it’s a lawsuit against a negligent company or individual, we jump into investigation mode – preserving evidence, interviewing witnesses, and building a strong case to prove fault. Our firm is known for fighting hard (“The Texas Hammer®” isn’t just a nickname) to hold employers and third parties accountable when they injure Texas workers. We have the resources to take on big companies and insurance firms in court if that’s what it takes.
Experience with Non-Subscriber and Third-Party Cases: Texas non-subscriber work injury cases and third-party claims can be complex, but this is where our experience truly benefits you. We are well-versed in the legal strategies needed to win cases against non-subscriber employers, who often try to dodge responsibility. We also have a deep understanding of industrial accidents, construction accidents, and other workplace injury scenarios involving multiple parties. Our attorneys know how to prove negligence and maximize damages in these claims. Over the years, we’ve helped clients recover full compensation beyond what workers’ comp alone would provide, including substantial awards for pain and suffering, impairment, and future losses.
Client-Focused Support: Suffering a work injury is stressful for you and your family. Our team prides itself on treating clients with compassion and respect. We will guide you through every step, keep you updated on your case, and answer any questions you have in plain English. You will not pay us anything unless we recover money for you – that’s our No Fee If No Recovery promise. Our priority is to alleviate your burdens and fight for your rights so you can focus on recovery.
Remember, time is critical after a work injury – especially if a third-party or non-subscriber claim is involved. Evidence can disappear, and there are strict deadlines to meet. If you or a loved one was seriously injured on the job in Texas and you’re unsure about your next step, reach out to Jim Adler & Associates today. We’ll help you determine the right course of action, whether it’s filing a workers’ comp claim, pursuing a lawsuit, or both, to make sure you are fully protected and compensated under the law.
(Consultations are free, and we’re available 24/7 to take your call. Let us put our experience to work for you.)
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