Texas has the most unusual workers' compensation system in the United States: it's the only state where private employers can legally opt out of workers' comp entirely. Before you calculate anything, the first question in Texas isn't "how much" — it's "does my employer even carry it."

The Non-Subscriber System

Employers who opt out are called "non-subscribers." If you work for one, you cannot file a standard workers' comp claim through the Texas Department of Insurance — but you're not without options. Non-subscriber employers lose the legal protections workers' comp normally gives them (like immunity from lawsuits and caps on damages), so injured employees can often sue directly for negligence and potentially recover more than workers' comp would have paid, including pain and suffering, which standard workers' comp never covers.

⚠️ Check first: Ask your HR department or look for a workers' comp poster in your workplace before assuming you're covered. Non-subscriber status changes your entire legal strategy.

If Your Employer Does Subscribe

For subscribed employers, Texas pays 70% of your Average Weekly Wage for the first 26 weeks of Temporary Income Benefits (a higher initial rate than the 66.67% used in most states), capped at $1,084/week in 2026. The certificate is valid for 2 years, one of the shorter validity periods in the country compared to the 3-year standard elsewhere.

Impairment Income Benefits

Once you reach maximum medical improvement, a designated doctor assigns an impairment rating, which converts into Impairment Income Benefits paid at 3 weeks per percentage point of impairment. Workers whose impairment rating exceeds 15% may qualify for Supplemental Income Benefits on top of that.

Frequently Asked Questions

Can my employer opt out of workers' comp in Texas?

Yes — Texas is the only state that permits this. If your employer is a non-subscriber, you may be able to sue directly for negligence instead of filing a standard claim.

How much does Texas workers' comp pay?

70% of your Average Weekly Wage for the first 26 weeks, capped at $1,084/week in 2026, for subscribed employers. Rates adjust after that period based on your recovery status.

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