New Hire Paperwork: Texas

New Hire Paperwork requirements for other states

Federal law and guidance on this subject should be reviewed together with this section.

Author: Melissa A. Silver, XpertHR Legal Editor

Summary

Workers' Compensation Notice

An employer is required to notify each new employee of the existence or absence of workers' compensation insurance coverage at the time the employee is hired. To satisfy this requirement, every employer is required to post a notice of whether the employer has workers' compensation insurance coverage at conspicuous locations at the employer's place of business as necessary to provide reasonable notice to the employees. +Tex. Lab. Code § 406.005. In addition to posting a notice, an employer must notify each new employee in writing of its workers' compensation coverage. See Workers' Compensation: Texas. This notice must be provided:

  • At the time an employee is hired, i.e., when the employee is required by federal law to complete both a W-4 form and an I-9 form, or when a break in service has occurred and the employee is required by federal law to complete a W-4 form on the first day the employee reports back to duty;
  • To each employee, by an employer whose workers' compensation insurance coverage is terminated or cancelled, not later than the 15th day after the date on which the termination or cancellation of coverage takes effect; and
  • To each employee, by an employer that obtains workers' compensation insurance coverage, not later than the 15th day after the date on which coverage takes effect.

The written notification must include the text contained in the posted notice. In addition, if the employer is covered by workers' compensation insurance or becomes covered, whether by commercial insurance or through self-insurance as provided by the Texas Workers' Compensation Act (Act), the notice must include the following statement: "You may elect to retain your common law right of action if, no later than five days after you begin employment or within five days after receiving written notice from the employer that the employer has obtained workers' compensation insurance coverage, you notify your employer in writing that you wish to retain your common law right to recover damages for personal injury. If you elect to retain your common law right of action, you cannot obtain workers' compensation income or medical benefits if you are injured." +28 TAC § 110.101.

If an employer recruits an employee in Texas to perform services outside of Texas, actually hires outside of Texas, and has notices of workers' compensation insurance coverage posted conspicuously at the place of hire and at the business location where the employee will perform services, is not required to provide the additional notice required above.

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Recruiting and Hiring > New Hire Paperwork