Nonsubscription

Nonsubscription

Texas is unique in that it allows employers the choice of whether to obtain workers compensation insurance. If an employer chooses to not carry traditional workers compensation insurance, it is considered a “nonsubscriber” to the Texas Workers Compensation Act. The U.S. Fifth Circuit Court of Appeals has described the Texas workers compensation system as a “statutory scheme that wields both a stick and a carrot.” The “carrot” for nonsubscription is that employers who opt out of traditional workers compensation insurance have more freedom to design their own benefits plan — or even offer no benefits whatsoever — according to their own needs and the needs of their employees. The “stick” of nonsubscription is that employers who opt out of the system no longer enjoy immunity from lawsuits. Moreover, when sued by an injured employee, nonsubscribing employers are stripped of certain common-law defenses that would otherwise might reduce or even eliminate an employer’s liability.

Nonsubscription has developed its own body of law, and nonsubscribers need lawyers who understand and have experience litigating nonsubscriber cases. The Peavler Group specializes in the representation of Texas nonsubscribers. Whether the employee files suit on general negligence and unsafe-workplace theories or asserts an ERISA claim for benefits under the employer’s occupational injury and disease benefits plan, The Peavler Group can help. Partner Donna Peavler is well known in the nonsubscription arena and often speaks and writes on issues affecting nonsubscribers in Texas. The Peavler Group is well-connected in the nonsubscription marketplace and can help put nonsubscribing employers (and employers considering nonsubscription) in touch with quality third-party-claims administrators and insurance brokers who specialize in nonsubscription.

The Peavler Group represents numerous nonsubscribing employers throughout Texas in federal and state court, as well as arbitrations and mediations. The Peavler Group is a member of TXANS, the largest association of nonsubscribers in Texas, and The Peavler Group has search engines in place to make sure it is kept abreast of recent developments and decisions relating to nonsubscribers and employee accident and injury benefit plans, and it promptly passes on breaking news and recent opinions to its clients and subscribers to its e-mail alerts. To subscribe to The Peavler Group e-mail alerts, please send an e-mail to Donna C. Peavler.