Which statement about elective states, like Texas and New Jersey, is true?

In elective states like Texas and New Jersey, employers have the option to choose whether or not to provide workers' compensation coverage. This characteristic distinguishes elective states from mandatory states, where coverage is compulsory for all employers. In elective states, while many employers may choose to offer workers' compensation to protect their employees and limit their liability, they are not legally obligated to do so, making the choice to opt-in or opt-out critical for their operational strategy.

This flexibility can lead to varying levels of employee protection, as some businesses may not carry coverage, potentially leaving employees without benefits in the event of an injury. It’s important to understand how this option affects both employers and employees, as it impacts the legal and financial implications of workplace injuries.

In contrast, the other statements do not correctly describe the nature of workers' compensation in elective states. Not all states have the same laws; states implement their regulations and coverage structures, which is why the idea of mandatory coverage for all employers doesn't apply to elective states. Only certain industries being covered under workers' compensation laws also doesn’t accurately reflect elective states, as the option varies across all industries rather than being restricted to specific ones.