Nonsubscriber Employers and Workplace Injuries

by | Aug 7, 2023 | Nonsubscriber Employers, Workplace Accident, Workplace Injuries, Workplace Safety

In today’s fast-paced world, where the workforce is the backbone of every industry, ensuring the safety and well-being of employees has become a paramount concern. Workplace injuries not only affect the affected employees but also impact employers’ operations, morale, and financial stability. Most companies subscribe to workers’ compensation insurance to address these issues and ensure employees are protected if an accident occurs.

However, there exists a subset of employers known as nonsubscribers who operate outside this traditional framework. In the article below, the nonsubscriber accident lawyers at Kherkher Garcia, LLP delve into the concept of nonsubscriber employers and their implications for workplace injuries.

What is a Nonsubscriber Employer?

Nonsubscriber employers are those who opt out of state-mandated workers’ compensation insurance programs. Instead of participating in these programs, they choose to assume financial responsibility for workplace injuries through alternative means, such as private insurance policies, self-insurance funds, or other contractual arrangements. This approach grants employers more control over claim processing, dispute resolution, and potential cost savings, but it also exposes them to higher legal and financial risks.

Some examples of businesses in Texas that are nonsubscribers include:

  • Hobby Lobby
  • Home Depot
  • Macy’s
  • McDonald’s
  • Pizza Hut
  • Sysco Corporation
  • Target
  • Wal-Mart
  • Wells Fargo
  • Whole Foods

This list is only a sample of major companies in Texas that are registered as nonsubscribers. The full list – which is extensive – is available by the Texas Department of Insurance (TDI). You may be surprised to learn that many nonsubscriber employers are in the retail, food service, and healthcare industries.

Why Do Companies Choose to be Nonsubscribers?

Here are some of the “pros and cons” that companies consider before deciding to subscribe to workers’ compensation insurance or not:


  1. Cost Management: Nonsubscriber employers have more flexibility in managing the financial aspects of workplace injuries. They can tailor insurance coverage and compensation plans to align with their specific business needs.
  2. Direct Employer-Employee Relationship: Nonsubscribers can often establish a more direct line of communication with injured employees, potentially leading to quicker resolution and a more supportive work environment.
  3. Reduced Legal Entanglements: Nonsubscribers can bypass certain legal restrictions imposed by workers’ compensation laws, potentially leading to fewer legal battles and settlements.


  1. Legal Risks: Nonsubscribers are exposed to lawsuits and legal claims brought by injured employees. These claims can result in high legal fees, penalties, and potentially hefty financial judgments.
  2. Financial Burden: In the event of a serious workplace injury, nonsubscriber employers may face substantial financial liability, especially if they lack adequate insurance coverage or funds for compensation.
  3. Employee Morale: Employees may view non-subscription as an attempt to evade responsibility, leading to lower morale and a negative workplace culture.

The decision to subscribe to workers’ compensation insurance or be a nonsubscriber is one that employers must carefully consider. Not all employers are capable to properly managing the responsibilities of a nonsubscriber if an employee is injured.

Workplace Injuries in the Non-Subscription Context

Workplace injuries can occur in any industry, regardless of whether the employer is a subscriber or nonsubscriber. However, the handling and consequences of such injuries differ significantly between these two categories. Consider the following:

Injury Reporting and Claims Process

For subscriber employers, the workers’ compensation system typically provides a clear framework for reporting injuries, processing claims, and ensuring timely medical treatment. In contrast, nonsubscriber employers often have their own reporting and claims processes, which can vary widely and may not always align with legal standards.

Dispute Resolution

In the workers’ compensation system, disputes between injured employees and subscriber employers are usually resolved through administrative processes or specialized courts. Nonsubscriber employers, on the other hand, may encounter more complex legal battles, as injured employees can file lawsuits seeking damages beyond what they would receive through workers’ compensation benefits.

Employer Liability

One of the critical aspects of workplace injuries in the nonsubscriber context is the determination of employer liability. In the absence of a structured compensation system, courts assess liability based on factors such as negligence, unsafe working conditions, and employer actions or omissions that contribute to the injury. This can lead to protracted legal battles and significant financial repercussions for nonsubscriber employers found liable.

Common Causes of Workplace Accidents at Nonsubscriber Workplaces

Workplace accidents can have devastating consequences, affecting employees’ well-being, productivity, and the financial stability of both workers and employers. When it comes to nonsubscriber employers who have opted out of traditional workers’ compensation programs, understanding the common causes of workplace accidents becomes even more crucial. Here are some of the most prevalent causes of workplace accidents in the context of nonsubscriber employers:

Lack of Proper Training

In nonsubscriber workplaces, training programs might be less standardized or comprehensive compared to those of subscriber employers. When employees are not adequately trained to use equipment, handle hazardous materials, or perform tasks safely, the risk of accidents increases significantly.

Inadequate Safety Measures

Nonsubscriber employers might cut corners on safety measures due to cost concerns or lack of awareness about best practices. Absence of safety guards, failure to implement proper signage, and lack of personal protective equipment (PPE) can expose employees to unnecessary risks.

Poor Maintenance

Equipment and machinery that are not well-maintained can malfunction or break down, leading to accidents. Nonsubscriber employers might postpone maintenance or repairs to save costs, putting employees in danger.

Insufficient Risk Assessment

Nonsubscriber employers might not conduct thorough risk assessments to identify potential hazards in the workplace. Without proper risk assessment, employees may be exposed to dangers they are unaware of, leading to preventable accidents.

Inadequate Supervision

Supervision and oversight are crucial in preventing workplace accidents. Nonsubscriber employers may have fewer resources for effective supervision, allowing unsafe practices to go unchecked and increasing the likelihood of accidents.

Lack of Communication

Clear communication of safety protocols, emergency procedures, and hazard warnings is essential to prevent accidents. In nonsubscriber workplaces, communication might be less structured or emphasized, leading to misunderstandings and unsafe behaviors.

Fatigue and Overexertion

Nonsubscriber employers might have demanding work schedules, leading to employee fatigue and overexertion. Tired workers are more prone to making mistakes and are less likely to follow proper safety protocols.

Insufficient Medical Resources

In nonsubscriber workplaces, access to immediate medical care might be limited compared to subscriber employers with established workers’ compensation systems. This delay in medical treatment can exacerbate injuries and their consequences.

Negligence and Noncompliance

Some nonsubscriber employers might not prioritize safety due to a belief that they can avoid legal repercussions. This negligence and noncompliance with safety regulations can lead to accidents that could have been prevented.

Unsafe Work Culture

A lack of emphasis on safety can contribute to a toxic work culture where employees may feel pressured to prioritize productivity over their own well-being. This can lead to employees taking risks that result in accidents.

Inadequate Emergency Response Plans

Accidents can happen in any workplace, and having well-defined emergency response plans is crucial. Nonsubscriber employers might not invest in creating and practicing such plans, leaving employees vulnerable in case of accidents.

Lack of Employee Empowerment

In nonsubscriber workplaces, employees might feel less empowered to voice safety concerns or report unsafe conditions. This lack of communication channels can result in hazards going unnoticed until they lead to accidents.

High Employee Turnover

Nonsubscriber workplaces with poor safety records might experience higher employee turnover due to concerns about well-being. Constantly training new employees increases the risk of accidents caused by inexperience.

Incentive Programs Gone Wrong

Nonsubscriber employers might implement incentive programs to encourage productivity, which could inadvertently lead employees to bypass safety protocols in pursuit of rewards.

Rushed Work Environments

Pressure to meet tight deadlines or production quotas can cause employees to rush through tasks, leading to accidents caused by oversight or hasty decisions.

In conclusion, the common causes of workplace accidents among nonsubscriber employers often stem from a combination of financial considerations, inadequate safety measures, and lack of proper training and oversight. Addressing these issues requires a commitment to creating a culture of safety, investing in proper training and equipment, conducting thorough risk assessments, and ensuring effective communication throughout the organization.

A Note about Workplace Safety

Regardless of subscription status, workplace safety should always be a top priority for employers. Nonsubscriber employers, in particular, can benefit from robust safety programs, comprehensive training, and proactive risk management strategies to reduce the occurrence of injuries. Engaging in regular safety audits, implementing employee feedback mechanisms, and maintaining transparent communication channels can go a long way in preventing workplace accidents.

Getting Compensation after a Nonsubscriber Workplace Injury

Workplace injuries are an unfortunate reality, but how employers address them can significantly impact your life and the organization’s future. Unfortunately, many large companies in Texas choose not to subscribe to workers’ compensation insurance. Employees may not realize what that could mean if they are injured on the job.

At Kherkher Garcia, our goal is to help employees in Texas understand how nonsubscriber employers work and how they can get help if they are injured on the job. A sad reality is that many nonsubscriber employers do not do what is truly needed to compensation their employees if an injury occurs. This leaves employees with few options for how to recover physically and financially.

Employees should know that even if they work for a major company – if an injury occurs, they have the right to seek compensation. Furthermore, employees are not alone in this process. The nonsubscriber accident lawyers at Kherkher Garcia are here to help. We provide comprehensive legal guidance for employees in difficult situations.

To find out more about your options to pursue compensation, call us at 713-333-1030, or fill out our online form. We offer a 100% free consultation to every potential client. You are under no obligation simply by learning more about your situation and rights.

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Steve Kherkher

Steve Kherkher

Founding Partner and Trial Lawyer

This article was written and reviewed by Injury Trial Lawyer and Founding Firm Partner Steve Kherkher. Steve has been a practicing injury lawyer for more than 30 years. He has won $300 Million+ in Settlements and Verdicts for his clients. He is a force to be reckoned with in the courtroom and the trial lawyer you want on your side if you or a loved one have been catastrophically injured.

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