Midland, Texas Workmen's Comp Non-Subscribers 

Midland, Texas, is the energy hub of the Permian Basin, which produces more than 14% of the oil in the United States at a rate exceeding 3.9 million barrels of oil per day. Increased production leads to thousands of high-paying jobs available in oil fields, as well as construction and manufacturing jobs with an average hourly rate of $36.98 as of December 2024. However, while many jobs can be lucrative, the environment, shifts, machinery, and other dangerous work sites are prone to many injuries. There were 58 workplace fatalities reported in Texas in 2024. The Midland-Odessa area reported 15 injuries, two of which were fatal. The total citations for the area were 316, with a fine of $1.4 million imposed on operators by OSHA in the Permian Basin area. For workers in the non-subscriber space, as their employer did not subscribe to traditional workers' compensation, it is crucial to know your rights. Texas is the only state that allows contending private employers to opt out of workers' compensation coverage for employment injuries. Injured employees will need to pursue remedies, as described below. At A2X Law, we have a national team specializing in catastrophic injury and personal injury cases. We help workers from Midland assess and advocate for non-subscriber claims for compensation for injuries, including medical bills, lost wages, and pain and suffering compensation.  


What Are Non-Subscribers in Texas Workers' Compensation? 

In Texas, participation in the workers' compensation system is voluntary for private employers, which sets the state apart from the other 49 states, as it is mandatory coverage. This system, known as "subscribing," dates back to 1913. Private employers who purchase workers' compensation insurance become "subscribers" and agree to provide no-fault insurance benefits (medical care in addition to lost wage benefits while injured) in exchange for protection against lawsuits. Non-subscribers, however, forgo this insurance, exposing themselves to negligence lawsuits from employees who are injured. 


Non-subscribers must notify employees annually via Form DWC-5 and file reports with the Division of Workers' Compensation (DWC) using the new Employer E-File system, effective for 2025 filings starting in February. While about 83% of Texas workers are covered under subscribers, non-subscribers are more common in high-risk sectors, such as oil and gas, where premiums can be steep. In Midland's Permian Basin, many oilfield contractors and service companies opt to control costs amid volatile energy prices, but this shifts the burden to workers in the event of an injury. 


Claims are streamlined without altering the fundamental non-subscriber framework, thanks to recent 2025 modifications, including DWC's interest rate set at 7.12% for October through December and increased videoconference alternatives for hearings under HB 4464. Under ERISA, non-subscribers are permitted to provide private occupational injury policies. Still, these are loosely regulated and often offer less protection than traditional workers' comp. 


Rights of Injured Workers at Non-Subscriber Employers 

If you're injured at a non-subscriber workplace in Midland, you retain the right to sue your employer for negligence under Texas Labor Code § 408.001, unlike subscribers, where benefits are the exclusive remedy. This leads to further compensation for things like punitive damages for gross negligence. Still, you must prove fault, which may include unsafe equipment or inadequate training.  


Key rights include: 

  • Negligence Claims: Employers can be held legally responsible for failing to provide employees with a safe work environment. This is a significant basis for claims in oilfield accidents. An example would be machinery that fails to function correctly (25% of accidents).  
  • Third-Party Suits: Sue contractors, suppliers, or manufacturers if their actions contributed to the incident, as seen in multi-party Permian rig explosions. 
  • No Fault Bar: Unlike subscribers, you can contest injury legitimacy in court, potentially recovering more than capped benefits. 
  • Statute of Limitations: Two years from injury for personal injury suits, but act fast to preserve evidence like OSHA reports. 


In Midland, where unemployment reached a low of 3.0% in January 2025, and construction tied to oil booms drives risks, non-subscriber status amplifies vulnerabilities for the 17% of the workforce that remains uncovered. Exemptions apply to casual or domestic workers, but oilfield hands, facing seven times the national fatality rate, are fully protected under negligence laws. 


Pros and Cons of Non-Subscriber Status 

Non-subscribers offer flexibility but heighten risks, particularly in Midland's hazardous energy sector. 


Advantages: 

  • Cost Savings: Avoid high premiums; tailor injury plans to business needs, potentially saving millions for Permian operators. 
  • Custom Benefits: Design ERISA plans with higher payouts or faster claims, appealing to skilled workers in a tight labor market (Midland's 2.8% unemployment in November 2024). 
  • No Premium Hikes: Injuries don't trigger rate increases like in subscriber systems. 


Disadvantages: 

  • Lawsuit Exposure: Face complete negligence suits, with uncapped damages, e.g., multimillion-dollar verdicts in oilfield crush injuries. 
  • Reporting Burdens: Annual DWC filings and injury reports via E-File, plus employee notifications. 
  • Worker Deterrence: In Midland's competitive hiring scene, non-subscriber status may repel talent seeking secure coverage. 


For employees, the trade-off is no automatic benefits but potential for greater recovery through litigation. 


Pursuing a Claim as a Non-Subscriber Employee 

If you are injured, document everything, including photos, witness statements, and medical records, and report the incident to OSHA within 24 hours for severe cases. Seek legal advice as soon as possible to assess fault and bring a lawsuit within two years. Contract waivers are blocked in Midland, where lawsuits frequently entail multi-party responsibility under the Texas Oilfield Anti-Indemnity Act, where 15 people had serious injuries in 2024.  

Non-subscriber claims can result in higher awards, covering medical expenses, full lost wages (often over $80,000 annually in the oil industry), and pain and suffering, but they require proving fault, unlike claims from no-fault subscribers.


A2X Law: Your Advocate in Non-Subscriber Claims 

At A2X Law, we advocate for Midland workers who have sustained injuries at non-subscriber employers. We utilize our knowledge of the Texas Labor Code and the exceptional dangers that exist in the Permian Basin. We investigate all avenues of negligence, including defective rigs and violations of OSHA, to obtain maximum compensation without relying on limited plans to recover fully. Non-subscriber status should not limit your justice.