Home > News > More Employers Opt Out of Texas Workers’ Comp; Calif. Employers Stuck

More Employers Opt Out of Texas Workers’ Comp; Calif. Employers Stuck

One of the stories making the news around the internet is that Walmart has elected to opt out of the workers’ compensation system in Texas.  Now, now, before you get all excited about escaping a system that leaves every possible participant dissatisfied (except the occasional lien claimant), California does not allow its employers to opt out of workers’ compensation.  Texas and Oklahoma do.

Why is this relevant to California?  More and more businesses in California are finding the Golden State to be a bit too expensive for their business-blood.  When big-name employers like Walmart (and Target) decide the workers’ compensation system is not worth it, it makes waves in the news world and posits the question to California businesses – is California worth it?

As a defense lawyer, I am very well aware that my entire practice depends on employers staying in California and, ideally, growing in California.  Insurance companies understand this as well – the client, the customer, the almost-business-partner, is the array ranging from the solo practitioner who wants to get insurance for himself to the Walmarts of the world (but not Texas) buying insurance for their thousands of employees.

Applicants’ attorneys and labor unions don’t seem to understand this – even the settlers of Easter Island eventually realized that you can only cut down so many trees before there aren’t any left.

This blog has made the point before and will, with all decorum, make the point again:  unless something is done to cut the costs of the workers’ compensation system, Texas employers will continue to opt out, and California businesses will become Texas businesses.

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