Texas workers comp requirements decide exactly when an employer must carry coverage, who counts toward the threshold, and the penalty for going without. This guide breaks down the Texas workers comp requirements in plain English. (Injured instead of hiring? See our Texas settlement and claim guides linked below.) All figures are from Texas sources, verified as of June 2026.
Texas at a Glance
| Required at | 0 — there is no employee count that triggers a mandate for private employers; coverage is optional even with 1 or many employees (the one exception is employers who contract with a governmental entity, which must carry coverage for workers on that project). employee(s) |
| Which workers count | No threshold applies to private employers — full-time, part-time, and seasonal worker counts are irrelevant because coverage is voluntary. Texas has no special construction-from-first-employee mandate for private work; only government-contract work requires coverage for each employee on the project. |
| Who is exempt | Because coverage is elective, the concept of “exempt workers” is largely moot for private employers. Sole proprietors, partners, and corporate officers are not required to be covered, and independent contractors are generally not covered; certain employments (e.g., some domestic, casual, and agricultural labor) historically fall outside mandatory-coverage frameworks, but in Texas the entire system is opt-in for private employers. |
| Penalty for going without | There is NO penalty for a private employer choosing not to carry workers’ comp (it is legal to be a non-subscriber). However, non-subscribers must file an annual DWC Form-005 notice of non-coverage with the Division, post notice of no coverage to employees, and report workplace injuries — failure to meet these reporting/notice requirements is an administrative violation under Texas Labor Code Chapter 415, with penalties up to 25000 per day per occurrence (each day a separate violation). Non-subscribers also lose common-law defenses (contributory negligence, assumption of risk, fellow-servant) and face unlimited personal liability in employee injury lawsuits. |
| Monopolistic state? | No — private carriers |
In This Texas Guide:
Is Workers’ Comp Required in Texas?
Workers’ compensation is NOT required for most private employers in Texas — Texas is the only state where private employers may legally opt out entirely (become a “non-subscriber”), regardless of how many employees they have.
Texas Workers’ Comp Requirements at a Glance
Here are the exact Texas workers comp requirements every employer should know:
| Employees that trigger the mandate | 0 — there is no employee count that triggers a mandate for private employers; coverage is optional even with 1 or many employees (the one exception is employers who contract with a governmental entity, which must carry coverage for workers on that project). |
| Which workers count | No threshold applies to private employers — full-time, part-time, and seasonal worker counts are irrelevant because coverage is voluntary. Texas has no special construction-from-first-employee mandate for private work; only government-contract work requires coverage for each employee on the project. |
| Who is exempt | Because coverage is elective, the concept of “exempt workers” is largely moot for private employers. Sole proprietors, partners, and corporate officers are not required to be covered, and independent contractors are generally not covered; certain employments (e.g., some domestic, casual, and agricultural labor) historically fall outside mandatory-coverage frameworks, but in Texas the entire system is opt-in for private employers. |
| Owners & officers | Owners, partners, and corporate officers may choose whب to be included or excluded since the whole policy is elective; sole proprietors, partners, and corporate officers can elect to include or exclude themselves on the policy with their carrier. |
| Penalty for going without | There is NO penalty for a private employer choosing not to carry workers’ comp (it is legal to be a non-subscriber). However, non-subscribers must file an annual DWC Form-005 notice of non-coverage with the Division, post notice of no coverage to employees, and report workplace injuries — failure to meet these reporting/notice requirements is an administrative violation under Texas Labor Code Chapter 415, with penalties up to 25000 per day per occurrence (each day a separate violation). Non-subscribers also lose common-law defenses (contributory negligence, assumption of risk, fellow-servant) and face unlimited personal liability in employee injury lawsuits. |
| Monopolistic state? | No — buy from private carriers |
| State fund | Texas has a competitive (not monopolistic) market option — Texas Mutual Insurance Company serves as the state-created guaranteed-market carrier (formerly the Texas Workers’ Compensation Insurance Fund); it competes alongside private insurers. |
How to Get Workers’ Comp Coverage in Texas
A Texas employer that chooses to provide coverage can buy a policy from a private insurer, from Texas Mutual Insurance Company (the guaranteed-market/competitive state carrier), or qualify to self-insure individually or through a certified group self-insurance program approved by the state.
Private market: YES
What Workers’ Comp Covers in Texas
Workers’ compensation is a no-fault system: an injured employee gets benefits without having to prove the employer did anything wrong, and in exchange gives up the right to sue for most workplace injuries. A typical Texas policy pays for medical treatment tied to a work injury, part of the wages lost while the worker recovers, longer-term disability benefits if the injury is permanent, and death benefits to a family.
It also includes employers-liability coverage, which protects the business if an injury still leads to a lawsuit.
Employees vs. Independent Contractors in Texas
The most common way employers get the Texas workers comp requirements wrong is by assuming a worker is an “independent contractor” who does not count. State agencies look at how the work is actually controlled, not the label on a 1099. If Texas decides a contractor was really an employee, the business can owe back premiums and penalties as if coverage should have been in place all along.
When you are close to the employee threshold, confirm each worker’s status with your state board before you decide you are exempt.
Other Texas workers’-comp rules: Texas’s non-subscriber system is unique: employers who opt out must annually notify TDI-DWC of non-coverage and inform employees in writing, but they forfeit the standard tort liability protections. For employers who DO subscribe, the 2026 maximum weekly income benefit (Oct 1, 2025–Sep 30, 2026) is 1271.05 (100% of the state average weekly wage) with a minimum of 190.66; Temporary Income Benefits run up to 104 weeks.
These figures change each year — confirm current values with the Texas Department of Insurance and a licensed attorney before relying on them.
Understanding Texas Workers Comp Requirements
The Texas workers comp requirements exist so injured employees get care and lost wages without having to sue. For most employers, the Texas workers comp requirements come down to one number: the employee count that triggers the mandate, shown in the table above. Once you hit that count, Texas workers comp requirements apply whether you planned for them or not, and the penalty for going without is real.
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If any part of the Texas workers comp requirements is unclear, your state board can confirm the threshold, the exemptions, and how to get covered.
Need to get covered? If you are an employer in Texas shopping for a policy, our sister site compares small-business insurance, including workers’ comp. Compare business insurance options →
Frequently Asked Questions
Is workers’ comp required in Texas?
Workers’ compensation is NOT required for most private employers in Texas — Texas is the only state where private employers may legally opt out entirely (become a “non-subscriber”), regardless of how many employees they have.
What is the penalty for not having workers’ comp in Texas?
There is NO penalty for a private employer choosing not to carry workers’ comp (it is legal to be a non-subscriber).
However, non-subscribers must file an annual DWC Form-005 notice of non-coverage with the Division, post notice of no coverage to employees, and report workplace injuries — failure to meet these reporting/notice requirements is an administrative violation under Texas Labor Code Chapter 415, with penalties up to 25000 per day per occurrence (each day a separate violation).
Non-subscribers also lose common-law defenses (contributory negligence, assumption of risk, fellow-servant) and face unlimited personal liability in employee injury lawsuits.
Who is exempt from Texas workers’ comp?
Because coverage is elective, the concept of “exempt workers” is largely moot for private employers. Sole proprietors, partners, and corporate officers are not required to be covered, and independent contractors are generally not covered; certain employments (e.g., some domestic, casual, and agricultural labor) historically fall outside mandatory-coverage frameworks, but in Texas the entire system is opt-in for private employers.
Official Texas Sources & Resources
- Texas Texas Department of Insurance, Division of Workers’ Compensation (TDI-DWC): https://www.tdi.texas.gov/wc/index.html
- Texas Workers’ Comp Statute: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.406.htm
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
These Texas workers comp requirements were last verified against official sources in June 2026. Rules and penalties change — confirm the current figure with your state workers’-comp board or a licensed agent.
More Texas Workers’ Comp Guides
- Texas Workers’ Comp Settlements
- How to File a Texas Workers’ Comp Claim
- Workers’ Comp Guides for All 50 States
Disclaimer: This guide is informational only and is not legal, medical, or financial advice. Workers Comp Explained is an independent educational resource, not a law firm or insurer. Workers’ comp benefits, settlement values, deadlines, and requirements vary by state and by the specific facts of your injury and change over time, and any settlement figures here are illustrative only.
Confirm your rights and any deadline with your state’s workers’ compensation board and a licensed attorney before you act.