A survey from the Texas Department of Insurance, Division of Workers’ Compensation’s Research and Evaluation Group found that employer subscription in workers’ comp increased to 75% in 2022, up from 72% in 2018. Texas allows employers to decide whether or not to offer workers’ compensation to their employees.
The survey, Employer Participation in the Texas Workers’ Compensation System, found that the share of employees that work for subscribers increased to 83%, the highest in 12 years. Subscription rates among small employers decreased while rates remained stable for large employers. The Public Policy Research Institute at Texas A&M University conducted 1,619 interviews with year-round private-sector Texas employers.
Mining/utilities/construction had the highest participation rate, with 84% of employers in those industries reporting subscription to the workers’ comp system. 81% of wholesale trade/retail trade/transportation employers participated, up from 67% in 2018. Health care/educational services had the smallest share of employer participation, with only 63% reporting subscription to the system.
The most frequent reason employers gave for not purchasing coverage was the employer had too few employees (26%), followed by law does not require employers to have workers’ compensation insurance (23%), and employer had few on-the-job injuries (23%).
The Texas Department of Insurance releases a workers’ compensation employer participation survey every other year.