Texas Extends Reporting Period for Workers’ Comp Non-Subscriber Status

February 22, 2016

The Texas Department of Insurance, Division of Workers’ Compensation (DWC) announced a grace period for employers without workers’ compensation insurance coverage or that terminated their coverage — deemed non-subscribers — to report their non-coverage status to DWC without penalty.

This grace period also extends to non-subscribers with five or more employees that have not previously reported on-the-job injuries, illnesses, and fatalities to DWC.

Historically, non-subscriber reporting rates are low, and DWC is offering this grace period to increase compliance with required state reporting.

This grace period allows non-subscribers that have not previously reported their non-coverage status, to submit the DWC Form-005, Employer Notice of No Coverage or Termination of Coverage (DWC Form-005), without an administrative penalty during the Feb. 1, 2016, through April 30, 2016, reporting period.

Additionally, this grace period also allows non-subscribers with five or more employees that have not previously reported their injuries, illnesses, and fatalities, to submit the DWC Form-007, Employer’s Report of Non-Covered Employee’s Occupational Injury or Disease (DWC Form-007) without an administrative penalty for injuries, illnesses, and fatalities occurring on or after May 1, 2016.

By law, non-subscribers must annually notify DWC of their decision not to obtain workers’ compensation insurance coverage by submitting the DWC Form-005 and must also report each on-the-job injury, occupational illness, or fatality resulting in more than one day of lost time to DWC by filing DWC Form-007.

Nonsubscribers that fail to comply with state requirements are subject to administrative penalties.