Retention Period for Workers' Compensation Records in the TDI System

Retention Timeframe

Records for workers' compensation claims filed with the Texas Department of Insurance (TDI) must be kept for a minimum of seven years after the final settlement or judgment is entered. This statutory period applies to both claim files and supporting documentation such as medical reports, payroll records, and correspondence.

Legal Basis

The retention requirement is codified in Texas Administrative Code Title 22, Part 2, Chapter 6, §6.1.1. The regulation specifies that insurers, claimants, and employers must preserve records for the stated period to ensure compliance with state and federal reporting obligations and to facilitate potential audits or disputes.

Why Seven Years?

Seven years aligns with the statute of limitations for most workers' compensation claims in Texas, which is generally two years from the date of injury or from the date the injury is reported. Retaining records beyond the limitations period provides a safeguard against late‑filing claims and supports investigations into potential fraud or negligence.

Practical Management Tips

Employers should establish a standardized filing system, whether paper or electronic, that includes:

• Clear labeling of each claim file
• Regular backups for digital records
• Secure storage to protect sensitive employee data

At the end of the seven‑year window, conduct a review to determine whether any records can be archived, destroyed, or transferred to a secure long‑term storage facility.

When to Seek Extension or Early Destruction

In rare cases, such as ongoing litigation or regulatory investigations, TDI may grant an extension for record retention. Conversely, if a claim is conclusively closed and no further legal action is anticipated, employers may destroy records after verifying the seven‑year requirement has passed. Always consult legal counsel before proceeding with destruction to avoid inadvertent non‑compliance.

Compliance Checklist