Workers' Compensation by state
Workers' compensation requirements in Texas
Optional for most private employers
Direct answer
Does Texas require workers' compensation insurance?
Texas does not require workers' compensation for most private employers, one of the only states where coverage is optional, though going without it carries real legal exposure. Texas is unique in that most private employers are not required to carry workers' compensation coverage and may lawfully operate as non-subscribers.
How the mandate works
Texas is unique in that most private employers are not required to carry workers' compensation coverage and may lawfully operate as non-subscribers. However, private employers that contract with government entities and certain others must carry coverage, and non-subscribers give up the common-law defenses that normally limit an employer's liability for a workplace injury.
- Coverage trigger
- Elective for most private employers
- If you go without coverage
- Non-subscribers must report their status and lose the common-law defenses of contributory negligence, assumption of risk, and the fellow-servant rule, which can substantially increase liability in an injury suit.
Notable exemptions
Exemptions are narrow and fact-specific; confirm your situation with the regulator or an agent before relying on one.
- Most private employers may elect not to subscribe to workers' compensation
- Public employers and certain building and construction contractors on government projects must carry coverage
Statutes and sources
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Texas Workers' Compensation Act
Tex. Lab. Code Ann. sect. 401.001 et seq.
Regulator: Texas Department of Insurance, Division of Workers' Compensation . Last verified 2026-07-29 from the official source .
Related Texas compliance pages
Workers' Compensation in other states
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
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