Short answer: Most Texas private employers may choose whether to carry workers’ comp. A non-subscriber should check whether its STD and LTD policies exclude work-related injuries, because without workers’ comp that exclusion can leave an injured employee with no income benefit.
Texas Labor Code 406.002 says that, except for public employers and as otherwise provided by law, an employer may elect to obtain workers’ compensation coverage. Many Texas employers are non-subscribers and use an occupational injury benefit plan instead, or nothing.
Group disability contracts commonly cover only disabilities that are not work-related, on the assumption that workers’ comp pays for injuries on the job. For a non-subscriber that assumption fails. When quoting STD or LTD for a non-subscriber, ask the carrier about 24-hour coverage, or confirm that the employer’s occupational plan pays income benefits. Terms vary by carrier.
Non-subscribers also have their own filing and notice duties with the Texas Division of Workers’ Compensation, separate from the disability plan.