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Who pays for Workers Compensation claim? Texas

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  • Who pays for Workers Compensation claim? Texas

    A colleague asked me this the other day, and Iím not 100% sure of the answer. Company is a warehouse/distribution facility. 60% of workers are theirs and the other 40% belong to a temporary staffing service. The staffing service does have an on-site supervisor who handles all issues concerning their employees (e.g. hiring, terminating, discipline, etc.). One of the temporary employees was injured on the job. Question is who is responsible for the workers compensation claim? Is it the company because the accident occurred on their premise? Does it fall to the temporary staffing company because it is actually their employee?

  • #2
    The staffing agencies WC insurance should cover this accident. It may end up being shared with the warehouse WC insurance, but the staffing agency is responsible for getting the ball rolling.


    • #3
      Agreed, although there are possible liability issues (unrelated to WC per se) affecting the host company any time a non-employee is injured on the premises.
      "Reality is that which, when you stop believing in it, doesn't go away".
      Philip K. **** (1928-1982)


      • #4
        This should be covered in the staffing firm's agreement with this employer as to who is covering these ees. However, TX is one of the few (if not only) states to allow employers to forgo WC insurance. However, they lose the protection it can provide as to lawsuit remedies if they do. I have one out of 5 companies that are under our umbrella that does not have a WC policy (both ees are owners). It is rare for a company to forgo it.

        When the WC audit is done each year, the employer should be required to provide to their own WC insurance company proof that the staffing employees are covered elsewhere. If they don't, they would be charged extra based on that payroll. So the employer should have a very good clue and if they don't they should be asking this question each year at audit time. (I have been involved in 6+ audits a year for more than 10 years now in TX, so I've gotten really good at it!)

        WC at the staffing company might try to subrograte the claim to the property liability if they think they could prove any type of negligence on the part of the property itself (Like DAW states, you have property liability anytime you allow anyone to visit).


        • #5
          Thank you.