When States Let Employees Opt Out Of Paying Workers’ Compensation

When States Let Employees Opt Out of Paying Workers’ Compensation


Getting hurt on the job is not an uncommon phenomenon. Employees who meet with any sort of injury at the workplace are liable to receive workers’ compensation. Workers’ compensation is defined as “remedial social legislation to ensure that employees hurt on the job will be paid without regard to fault.”

The workers’ compensation program was created to protect employees injured on the job. The benefits of this claim may include medical costs, lost wages, and rehabilitation costs. The workers’ compensation program is a state-mandated insurance program.

Many employees have no clue that they sign away their rights to workers’ compensation rule until after they become a victim of a  work injury. The employees are also denied the right to trial by a jury.

The purpose of the workers’ compensation law in any state is to take away the employee’s right to sue the company for any injury. Instead, they are provided with compensation that works like a benefit plan thereby satisfying the employee. You will be given the right to file for benefits paid as part of the workers’ compensation.

For employers who choose not to pay, reasonable personal injury law applies to a certain limit and employees who are hurt retain the right to sue their employer when an accident occurs.

The only state where employers are able to opt out of workers’ compensation is in Texas. Employers who have opted out of workers’ compensation coverage are referred to as non-subscribers. In such situations, the employee retains the right to seek a remedy through the justice system. Since you have the right to bring forward lawsuits against an employer, one advantage to a non-subscriber case is that the employer could be held vastly accountable by a jury.

The non-subscriber lawsuit can influence other employers to follow the same route and bend the rules regarding workplace safety. However, if the worker’s compensation had been present, the injured worker will typically get paid less than he would have if he had been able to take the case to trial. Luckily, all states besides Texas require employers to have workers’ compensation.

Being an injured worker, you will be eligible to claim a large sum as a result of suing your employer for all their losses and not just for the workers’ compensation.


Workers’ compensation can be complicated to navigate depending on the state and circumstances. At the Law Offices of Craig A. Altman, you can reach us day or night, or you can use our online contact form to schedule a no-obligation appointment. If you would like to discuss your case with an experienced workers’ compensation lawyer, give us a call at (856) 327-8899.

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