Walmart Stirs Concern Over Workers' Compensation System
*Clarification appended
When Walmart, one of Texas’ largest private employers, dropped out of the state’s workers’ compensation system in March, it was a heavy blow to advocates of the system who have watched more large companies offer private — and in many cases, less generous — injury benefits.
Texas is the only state in the country that allows employers of any size to decline to carry state-regulated workers’ compensation coverage. Businesses administer their own injury benefit programs, reaping big cost savings in exchange for exposing themselves to heightened liability risks. Target, for example, began administering its own injury care policy in ...
Comments (9)
BlackSheep01
Considering the size and reach of Wal-Mart and their reported profits the last several years, if having to buy a workers' compensation policy might force them out of business, they must be doing something wrong.
d b
Wow is this story slanted. My company is a Texas Non-Subscriber and our benefits are BETTER than Texas Workers Comp. In fact unlike an insurance company, our program does not have a profit motive so we can give that back more to our injured employees.
Also, the story failed to mention that Texas Non-subscribers who fail to take care of their employees are subject to lawsuits, where as Texas workers compensation is exclusive remedy and you CANNOT sue your employer.
Richard Thorne
I've checked into workers comp a few times over the last 16 years and its too expensive so we went a different direction. I don't buy the 'premiums would be less if everyone signed up' reasoning for a second.
As far as Walmart, they are handling their financial responsibility by lowering cost. They did so by replacing workers comp with probably a better product.
I love it when folks gang up on Walmart. I'd like to see what these same folks would say if Walmart were not here. Then they would be complaining that there isn't an outlet for inexpensive purchases.
Anya Khan
I was treated very ugly by the "mom and pop" shoe store in the small town I moved to with my husband. Everytime I went there I had snide comments about sales and being Jewish. Wal-Mart doesn't care who shops in their stores. Jewish Christian Muslem Hindi. They don't care, just shop. That is why they are big enough to own their own policy.
Laura Watts Kinnison via Texas Tribune on Facebook
How sad for the employes of Walmart. Another way for this huge coporation to NOT adequately provide benefits to its employees. Let's check back next year--I bet we find that the rate of on the job injuries has taken a nose dive! I bet an employee will have to be damn near dead before Walmart gives approval to a claim...
Cheryl El-Sabagh via Texas Tribune on Facebook
Walmart wouldn't do this unless there was more gain to their profit margin...always against the human!
Samdavis
The small company I worked for didn't carry Workers Comp or offer insurance. When I got hurt I had no recourse. for many of use the concept of suing a company is not a valid option given the money involved and the way the court system is tilted pro-business. Just another indication of how poorly this state is run.
As far as WalMart, I put my wallet where my mouth is and haven't given them my business for over a decade. I don't know if they feel it but I don't have to patronize one of the nation's most repressive companies.
Michael B Openshaw
DB, of course the story is slanted in support of government-run programs. I am very surprised that Wal-Mart was EVER in this program, since private sector solutions in that size range are generally better for the honest employee and more cost-effective. The Trib's problem with them is, they DO actually strive to limit the fraudulent claims- and they don't give more power to the government..
Guy Choate
Workers Compensation is not a government run program. It is private insurance required to adhere to a set, agreed upon set of benefits, established by statute. Texas is the only state in the union that does not require employers to carry Workers Compensation. Wal-Mart will be subject to common law claims if one of their employees is injured as a result of employer negligence, but the employee will have to take the claim to arbitration and will not have a jury. If an employee is seriously injured, medical benefits stop at 300,000. Guess who gets to pay then. Yes, the taxpayer. Also, all benefits stop for wage replacement after only 120 weeks. (This is 12 weeks after limitations runs on the common law claim) Texas WC is a terrible system but make no mistake, Wal-Mart has developed a much worse system at a great cost savings to... Wal-Mart.