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Increasing number of workers in Texas are covered by comp

Posted On: Apr. 7, 2023 9:52 AM CST


Eighty-three percent of employees in Texas are covered by workers compensation, the highest percentage in 12 years, according to data released Thursday by the Texas Department of Insurance, Division of Workers’ Compensation’s Research.

Texas, the only state where workers comp is optional, saw the employer subscription rate increase to 75% in 2022 from 72% in 2018 — all down from an all-time high of 78% in 2016.

Trends cited in the report included that the number of small employers opting in decreased while staying stable for large employers. Industries with the largest number of companies opting to carry coverage include mining, utilities and construction.

The most common reason non-subscribers gave for not having workers comp coverage was that they had too few employees, according to the report.

Thirty percent of opt-out employers — representing 73% of employees in the state without coverage — provided occupational benefits plans in 2022 to manage worker injuries and health. That percentage has been “relatively stable” since 2012, according to the report.

Such alternative occupational benefit plans often pay medical, wage replacement, or other types of benefits to employees injured on-the-job, and are not regulated by the state.