Revelation on Workers Comp in TX.

[CEW900]

Hey guys..

So it's about 12:00 at night im writing a paper in my TX. Gov. class and im reading about misc. business stuff in my book.

I found the most amazing thing I believe. My book says that in texas workmans compensation is optional. It's only mandatory for state contracts.

My books specifically says this on workers' compensation,

"Texas is unique among the states in allowing emploers to choose weather to provide workers' compensation, although public employers and employers who accept a public construction contract must provide workers' comp. Employers who are not participants in the program must notify both the Texas workers' compensation commision and all employees."

Well, Im about one chapter away from the end of my text book so I guess inless something changes within the next chapter about a new law or something it sounds to me like I dont have to pay workers' comp.

Anyone have any input on this?

Thanks guys.

 

[Mikes Lawn Landscape]

Do you really want to know what my input is or are you just wanting us to agree that what you found is a wonderful revelation ? Cause if you want my input you ain't gonna like it.

 

[lawnman_scott]

Dont have to have it in florida either, unless you have 3 or more employees.

 

[T.E.]

Not disputing you guys word, but that DOES NOT dismiss that fact that your still liable for them should they get hurt. In OK you have to have it for any number of employees,except if they are related by blood or marriage. Still I will have it for all employees. Just respect for the fellow man, and good biz. IMHO

 

[lawnman_scott]

Well of course your responsible, its just not a law that you have to carry it.

 

[dkeisala]

I've never had an accident in all the years in business. In Washington state, my workers comp rate is 91 cents per hour of which 12 cents per hour is deducted from employee pay check. This adds up fast for both employee and employer. Our worker comp rates have increased over 20% in just two years.

 

[lawnman_scott]

employees have to pay part?

 

[dkeisala]

In Washington, yes. And I was wrong about how much rates have gone up in the last two years, they have actually gone up by almost 40%!

 

[thill]

CEW900 -

In Texas, Florida and sevral other states you can "self insure". To do this you can "opt out" of the state's regular insurance program thus become a "non-subscriber".


To cover yourself against a massive W/C claim (loss that you ar liable for), you can then take out a policy that is underwritten by an ERISA insurance carrier.

The up sides are that the costs are dramatically less and if you have a major claim, the ERISA insurance kicks in big time.

The down side is that you can suffer small W/C claims that come out of your pocket and you have to do more paperwork that is normally done by your W/C carrier. This can be tricky with all of the privacy of information laws


Do a web search with the words "erisa workers compensation insurance coverage texas". You will find tons of information, most of it not relavent.

Good luck

Tom