A Texas workers’ comp waiver form is a written statement an employee gives an employer to opt out of that employer’s workers’ compensation coverage. The document waives your right to benefits under the employer’s policy but lets you keep the right to sue the employer if you are injured on the job — which in some cases recovers far more than the workers’ comp system would pay.
How workers’ compensation works in Texas
Texas is the only state in the country that does not require most private employers to carry workers’ compensation insurance. An employer can offer state-regulated workers’ comp, buy private occupational insurance, or do nothing at all. State plans frequently deny claims, and benefits can be difficult to receive. Private occupational policies often cap an injured worker’s benefits, legal rights, and health-care options.
The coverage gap is significant. A 2014 investigative report by the Texas Tribune found that more than 500,000 Texans had no occupational benefits if injured at work, that Texas led the nation in workplace fatalities, and that only 41% of private workers’ comp plans in the state included a death benefit. A Centers for Disease Control study indicated that workers’ comp insurance pays for less than half of work-related injuries in Texas — leaving the rest to taxpayers and charities. Some of those injuries are catastrophic, requiring lifelong treatment.
Why an employee might waive coverage
Workers’ compensation was designed to give employers immunity from workplace-negligence lawsuits. In exchange for agreeing to care for employees hurt on the job, the law shielded employers from costly litigation and court judgments. Employers who opt out of state-regulated workers’ comp are supposed to lose that protection against lawsuits.
But the protection is not absolute. Texas Mexican Railway Company v. Bouchet, a 1998 Texas Supreme Court ruling, made it legal for non-subscribing employers to fire injured workers. Many employers also bury opt-out language in the fine print of documents that workers must sign as a condition of employment — common in the trucking, construction, and industrial sectors. Signing your own workers’ comp waiver is one way to keep control of your right to seek damages or file a wrongful death suit rather than have those rights signed away in fine print.
The benefits of signing a waiver
Under Texas Labor Code 406.034, an employee has five days after employment begins — or after being notified of workers’ comp coverage — to submit a written statement to the employer opting out. Doing so preserves the right to sue the employer for work-related injuries or illnesses and to recover damages for:
- Medical bills
- Lost wages
- Death benefits or funeral expenses
Waiving coverage is most beneficial for workers in high-risk occupations, who may recover much more by taking their case to a jury than by navigating the Texas workers’ comp system.
What to do before you sign
Opting out has a real cost: it can allow an employer to fire you without cause. Before deciding, weigh your options with an experienced workers’ compensation attorney who can explain how a waiver affects your job, your benefits, and your right to sue. If you are weighing a Texas workers’ comp waiver or have already been hurt on the job, talk to an injury lawyer before you sign anything.