Legislation

• Worker's comp in Texas is covered by the Texas Worker's Compensation Act. This was first passed in 1917 but has been updated several times. The act forms Title 5 of the Texas Labor Code.
  
  

Elective Position

• Unlike most states, Texas law allows employers to choose between two positions: Having worker's comp and thus protection against lawsuits; or choosing not to have worker's comp and thus being open to a lawsuit from an injured worker.
  
  

Policy Options

• A Texas company that decides to have a worker's compensation policy can choose between using a state-administered policy fund, buying a policy from a private insurer or self-insuring. The policy must provide a certain level of coverage for a certain period of time. The precise payout requirements vary but are generally 70 percent of the employee's normal wages, subject to minimum and maximum limits. Generally, temporary disability payments can run for up to 104 weeks, while permanent disability benefits can run for up to 401 weeks.
  
  

Administration

• The Texas Worker's Compensation Commission oversees the insurance process and deals with complaints about failures to pay out. It offers an arbitration process to settle disputes. If an employee hires an attorney to assist with this process, the attorney's fees are legally capped at 25 percent of the value of the benefits in question.