Are you confused about the distinction between non-subscriber and workers’ compensation? Learn how each affects employees when injuries happen at work.

Texas Non Subscriber vs Workers’ Compensation

In the business world, providing work-place safety and well-being is key. Unfortunately, it’s not always easy. That’s why you need to understand your options and establish which compensation option best suits your needs. While workman comp may sound familiar, the concept of employers not offering a convenient way of getting redress for your pain and suffering might not be clear.

Let’s break down the differences between these two choices and how they can impact what you’re entitled to receive in a comp case when workplace accidents occur.

What is a non subscriber employer?

Sometimes, employers choose not to purchase the traditional workers’ compensation insurance. Instead, they opt to handle employees’ work-related injuries by themselves or through third parties.

Notably, most businesses offer the regular workers’ comp to their employees. That means, when their workers suffer injuries resulting from plant and refinery or industrial accidents, it will cover their damages. Although this approach is legal under Texas law, some employers can opt to ‘go it alone’ instead of participating in the normal workers’ comp program.

If you are injured under this method, you can still seek retribution by filing a Texas non subscriber worker’s compensation lawsuit against your non-subscribing employer.

But why would companies decide to operate as non-subscribers? It boils down to two factors.

1. Cost

The costs of providing traditional workers insurance cover can be quite high and unaffordable to most employers. By unsubscribing, they can save money and offer more safe and flexible options for handling claims.

2. Control

Many companies feel that opting out allows them to align their compensation plans to fit their business models. This makes them more able to offer benefits to their employees while evading the high expenses associated with government programs.

Remember, employees can directly sue non-subscriber businesses for work injuries, leading to costly legal battles. That’s why many organizations prefer the traditional workers’ comp system than the high-stakes gamble of the no-subscriber comp.

So, how do employers qualify to become non-subscribers in Texas?

• Notification: Employers must communicate their decision to opt out with the relevant authorities handling workers compensation and insurance.
• Injury benefit plan: They must design a robust injury benefit structure that conforms to state laws.
• Insurance: This strategy often involves acquiring additional insurance coverage or creating a self-funded plan to cover lost wages, medical costs, and any other related expenses.

What types of damages are covered in it?

When companies choose not to purchase worker’s comp, they lose key legal protections, exposing themselves to complicated employee injury lawsuits. These claims may cover everything from:

Medical expenses:

This includes the costs for immediate medical care after a workplace injury, including surgeries and emergency room visits, and hospital stays. Plus, it may relate to ongoing care like routine specialist consultations and physical therapy. Additionally, medical equipment and prescription medications are also part of the package to ensure the employees gets back on their feet.

Lost wages:

Non-subscriber plans provide a safety net to lost wages. If you’re partially unable to work because of an injury, the program offers relief for a percentage of their lost earnings through short-term disability benefits. For permanent disabilities, there are lifelong disability payouts on hand. Moreover, partial disability benefits come in handy for employees with limited capacity to work, helping to bridge the gap.

Pain and suffering:

Some injuries may cause severe physical pain. Unfortunately, some non-subscriber plans don’t provide relief for pain and suffering. However, through legal representation, you can seek damages for dealing with emotional and physical distress caused by the injury.

Legal costs:

Legal fees are a crucial part of non-subscriber programs. If the injured employer sues the employee, this option will cover defense costs related to the lawsuit. Additionally, if the worker receives a settlement or a court verdict, the plan takes into account those payments, ensuring that the business isn’t left high and dry.

Death benefits:

If the worst happens and an employee dies from workplace injuries, non-subscriber plans can cover death benefits. This involves paying for funeral and burial expenses, and financial care for the employee’s family members to help them deal with the tough times.

What is worker’s compensation

Many states provide insurance programs aimed to offer medical benefits and financial support when employees suffer injuries arising from their employment.

Worker’s comp covers the following scenarios:

Medical expenses:

All appropriate and relevant medical treatments linked to the injury are covered. They include emergency medications, prescriptions, necessary surgeries, and hospital stays.

Lost wages:

If the injury stops the worker from earning a living, workers’ compensation caters to a portion of wage replacement. This means that workers will still receive a fair amount of their earnings while recovering.

Disability benefits:

Depending on how severe the injury appears, workers’ compensation may offer both temporary and permanent disability options. It helps disabled employees to handle their medical expenses and recover some of their lost wages.

Funeral costs:

In tragic circumstances, where job-related injuries cause death, workers’ comp offers death benefits to the late employee’s family members. This normally includes death expenses and financial assistance for the dependents.

As mentioned, employers can opt out of workers’ comp insurance in Texas.

Therefore, companies like Amazon have chosen not to participate in the traditional compensation system. That means Amazon workers’ compensation settlements don’t exist in this state. However, if you sustain a job related illness while working for Amazon, you can contact a personal injury lawyer to pursue a lawsuit.

Non-subscriber and workers’ compensation systems vary in many ways. Each plan provides distinct benefits and challenges, affecting how workplace injuries are managed.

Is worker compensation taxable?

If you get sick or hurt from your job, you can receive benefits through a workers’ compensation cover. Fortunately, this insurance isn’t subject to taxation. The only time you may pay taxes is when you receive other benefits, such as retirement or social security disability insurance (SSDI).

Every state has its compensation requirements. So, always check what your state requires to help you handle your tax preparation.

Conclusion

Remember, companies that offer worker’s compensation insurance are protected from worker lawsuits, unless the employer becomes grossly negligent. With a non-subscriber claim, you have to prove liability for the accident that caused your injury.

If you’re faced with such an incident, don’t face the legal system alone. Our team at Husain Law + Associates — Houston Car Accident, Personal Injury and Truck Accident Lawyers, P.C. will help you unearth all relevant evidence to build a well-supported case. Schedule a completely free consultation with our dedicated work comp attorney to set the ball rolling and receive the compensation you deserve.