Eighty-three percent of Texas workers are covered by workers’ compensation, the highest rate in 12 years, according to data released Thursday by the Texas Department of Insurance, Division of Workers’ Compensation’s Research.
Texas, the only state where workers’ compensation is optional, saw the employer contribution increase to 75% in 2022 from 72% in 2018 — all down from the record high of 78% in 2016.
Trends cited in the report included a decline in the number of small employers choosing to participate while remaining stable for large employers. Industries with the largest number of companies choosing to carry coverage include mining, utilities and construction.
The most common reason non-subscribers gave for not having workers̵7; comp coverage was that they had too few employees, according to the report.
30 percent of employers who have not opted out—representing 73% of state employees without coverage—provided occupational benefits in 2022 to address worker injuries and health. That share has been “relatively stable” since 2012, according to the report.
Such alternative occupational benefits often pay medical benefits, wage compensation or other types of benefits to employees injured on the job and are not regulated by the state.