Workers Compensation
50
States
Plus DC and territories
1
System
No-fault, state-administered
TX
The Outlier
Voluntary for most private employers
a hundred-year-old handshake
The Grand Bargain
Employees give up the right to sue. Employers give up the right to fight liability. Each side trades risk for certainty. That trade is what workers comp actually is.
injury to benefit · how the four kinds branch
From Injury to Benefit
A workplace injury triggers a flow with up to four different benefit types depending on severity and outcome.
Coverage at a Glance
who's in
49 states + DC require coverage. Texas is the lone exception — most private employers can opt out (nonsubscriber). Common state exemptions: independent contractors, agricultural workers, domestic workers, very small employers.
commute exception
"Going and coming" rule excludes the daily commute — but special errands, traveling employees, and employer-provided transport are exceptions to the exception.
return-to-work
Light-duty assignments help injured employees return faster and reduce employer costs. Modified duty must accommodate medical restrictions.
Exam Traps
Workers comp is NO-FAULT
Employee does not need to prove employer negligence. Employer cannot use employee fault as defense, with limited exceptions like intoxication.
Texas is the only opt-out state
Most private employers in TX can choose nonsubscriber status. The exam tests this exception.
Exclusive remedy bars employer suits
Employees cannot sue the employer for negligence. They are limited to workers comp benefits. Third-party suits remain available.
Going-and-coming generally excludes commute
Commute injuries usually not covered. Exceptions: special errands, traveling employees, employer-provided transport.
No-fault means no fault
Employee fault generally does not bar recovery. Intoxication is a state-by-state exception.
Exclusive remedy + 3rd parties
Cannot sue employer for negligence. CAN sue third parties (negligent vendors, equipment manufacturers).
No matter who is at fault, your insurance pays your medical bills. That is workers comp for the workplace.
You give up the right to sue the other driver (the employer) in exchange for guaranteed coverage.
Medical bills. Lost wages (typically 2/3 of average weekly wage). Permanent disability. Death benefits to family.
If the other driver intentionally crashed into you, you can sue. Exclusive remedy has limits.
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