What You Need to Know About Each State’s Compensation Laws and Requirements

What You Need to Know About Each State’s Compensation Laws and Requirements

The workers’ compensation laws and requirements of each state can vary widely. Here are the workers’ compensation laws and requirements by state.

State State Workers’ Comp Division Coverage Details Purchase Options
Alabama Workers’ Compensation Division Coverage is mandatory for employers with 5 or more employees Purchase from a commercial carrier. Approved businesses may self-insure
Alaska Division of Workers’ Compensation Coverage is mandatory for employers with one or more employees Purchase through a commercial carrier or state-administered fund. Approved businesses may self-insure
Arizona Industrial Commission of Arizona Coverage is mandatory for any business regularly hiring or employing at least one employee, regardless of worker type Purchase through a commercial carrier. Approved businesses may self-insure
Arkansas Workers’ Compensation Commission Coverage is mandatory for most employers with three or more employees Purchase through a commercial carrier. Approved businesses may self-insure
California Department of Industrial Relations Coverage is mandatory for all employers and work circumstances Purchase through a commercial carrier or state-administered fund. Approved businesses may self-insure
Colorado Department of Labor and Employment Coverage is mandatory for all employers with one or more employees (full or part-time) Purchase through a commercial carrier. Approved businesses may self-insure
Connecticut Workers’ Compensation Commission Coverage is mandatory for all businesses with one or more employees, except those able to self-insure Purchase through a commercial carrier. Approved businesses may self-insure
Delaware Department of Labor Coverage is mandatory for employers with one or more employees Purchase through a commercial carrier. Approved businesses may self-insure
District of Columbia (D.C.) Department of Employment Services Coverage is mandatory for employers with one or more employees Purchase through a commercial carrier. Approved businesses may self-insure
Florida Department of Financial Services Coverage is mandatory for all private employers with four or more employees and contractors with one or more employees Purchase through a commercial carrier. Approved businesses may self-insure
Georgia State Board of Workers’ Compensation Coverage is mandatory for employers with three or more employees Purchase through a commercial carrier. Approved businesses may self-insure
Hawaii Department of Labor and Industrial Relations Coverage is mandatory for employers with one or more employees and LLC members Purchase through a commercial carrier. Approved businesses may self-insure
Idaho Industrial Commission Coverage is mandatory for employers with one or more employees Purchase through a commercial carrier or state-administered fund. Approved businesses may self-insure
Illinois Workers’ Compensation Commission Coverage is mandatory for most situations unless business is in construction, trucking at a construction site, or other hazardous fields Purchase through a commercial carrier. Approved businesses may self-insure
Indiana Workers’ Compensation Board Coverage is mandatory for all employers Purchase through a commercial carrier. Approved businesses may self-insure
Iowa Iowa Workforce Development Coverage is mandatory for all employers Purchase through a commercial carrier. Approved businesses may self-insure
Kansas Department of Labor Coverage is mandatory for all employers with employee gross payroll exceeding $20,000 Purchase through a commercial carrier. Approved businesses may self-insure
Kentucky Department of Workers’ Claims Coverage is mandatory for all employers with one of more employees, regardless of employee status  Purchase through a commercial carrier or through a state-administered fund. Approved businesses may self-insure
Louisiana Workforce Commission Coverage is mandatory for all employers Purchase through a commercial carrier or through a state-administered fund. Approved businesses may self-insure
Maine Workers’ Compensation Board Coverage is mandatory for employers with one of more employees Purchase through a commercial carrier or through a state-administered fund. Approved businesses may self-insure
Maryland Workers’ Compensation Commission Coverage is mandatory for employers with one or more employees Purchase through a commercial carrier or through a state-administered fund. Approved businesses may self-insure
Massachusetts Department of Industrial Accidents Coverage is mandatory for all employers Purchase through a commercial carrier. Approved businesses may self-insure
Michigan Workers’ Disability Compensation Agency Coverage is mandatory for employers with one or more employees Purchase through a commercial carrier or through a state-administered fund. Approved businesses may self-insure
Minnesota Workers’ Compensation Division Coverage is mandatory for all employers Purchase through a commercial carrier. Approved businesses may self-insure
Mississippi Workers’ Compensation Commission Coverage is mandatory for all employers with five regular employees Purchase through a commercial carrier. Approved businesses may self-insure
Missouri Division of Workers’ Compensation Coverage is mandatory for employers with five or more employees and construction businesses with one or more employees Purchase through a commercial carrier. Approved businesses may self-insure
Montana Employment Relations Division Coverage is mandatory for all employers Purchase through a commercial carrier or through a state-administered fund. Approved businesses may self-insure
Nebraska Workers’ Compensation Court Coverage is mandatory for employers and contractors with one or more employees Purchase through a commercial carrier. Approved businesses may self-insure
Nevada Division of Industrial Relations Coverage is mandatory for employers with one or more employees, subcontractors, independent contractors, and contractor employees Purchase through a commercial carrier. Approved businesses may self-insure
New Hampshire Workers’ Compensation Division Coverage is mandatory for all employers with any employees Purchase through a commercial carrier. Approved businesses may self-insure
New Jersey Division of Workers’ Compensation Coverage is mandatory for employers with one or more employees and employers not covered by federal programs Purchase through a commercial carrier. Approved businesses may self-insure
New Mexico Workers’ Compensation Administration Coverage is mandatory for employers with three or more employees and construction companies regardless of employee staff size Purchase through a commercial carrier or through a state-administered fund. Approved businesses may self-insure
New York Workers’ Compensation Board Coverage is mandatory for all employers Purchase through a commercial carrier or through a state-administered fund. Approved businesses may self-insure
North Carolina Industrial Commission Coverage is mandatory for all employers with three or more employees and businesses where radiation is present Purchase through a commercial carrier. Approved businesses may self-insure
North Dakota Workforce Safety and Insurance Coverage is mandatory for all employers Purchase through state-administered fund only. Self-insurance and private insurance is prohibited
Ohio Bureau of Workers’ Compensation Coverage is mandatory for all employers with one or more employees Purchase through state-administered fund only. Self-insurance and private insurance is prohibited
Oklahoma Workers’ Compensation Court of Existing Claims Coverage is mandatory for all employers Purchase through a commercial carrier or through a state-administered fund. Approved businesses may self-insure
Oregon Workers’ Compensation Division Coverage is mandatory for employers with one or more employees Purchase through a commercial carrier or through a state-administered fund. Approved businesses may self-insure
Pennsylvania Bureau of Workers’ Compensation Coverage is mandatory for all employers with one or more employees Purchase through a commercial carrier or through a state-administered fund. Approved businesses may self-insure
Rhode Island Workers’ Compensation Division Coverage is mandatory for employers with four or more employees Purchase through a commercial carrier or through a state-administered fund. Approved businesses may self-insure
South Carolina  Workers’ Compensation Commission Coverage is mandatory for employers employing four or more regular full-time or part-time employees Purchase through a commercial carrier. Approved businesses may self-insure
South Dakota Department of Labor and Regulation  Coverage is mandatory for all employers Purchase through a commercial carrier. Approved businesses may self-insure
Tennessee Bureau of Workers’ Compensation Coverage is mandatory for employers with five or more employees and employers in construction, coal mining, or trades Purchase through a commercial carrier. Approved businesses may self-insure
Texas Division of Workers’ Compensation Coverage is not mandatory except for construction companies on contract for governmental entities Purchase through a commercial carrier or through a state-administered fund. Approved businesses may self-insure
Utah Labor Commission Coverage is mandatory for all employers Purchase through a commercial carrier or through a state-administered fund. Approved businesses may self-insure
Vermont Workers’ Compensation Division Coverage is mandatory for employers with one or more employees (full or part-time) Purchase through a commercial carrier. Approved businesses may self-insure
Virginia Workers’ Compensation Commission Coverage is mandatory for employers regularly employing two or more employees  Purchase through a commercial carrier. Approved businesses may self-insure
Washington Department of Labor and Industries Coverage is mandatory for all employers with one or more employees Purchase through a state-administered fund. Purchasing from private carriers is prohibited. Approved businesses may self-insure 
West Virginia Offices of the Insurance Commissioner Coverage is mandatory for all employers Purchase through a commercial carrier or through a state-administered fund. Approved businesses may self-insure
Wisconsin Department of Workforce Development Coverage is mandatory for employers with three or more employees (full or part-time)  Purchase through a commercial carrier. Approved businesses may self-insure
Wyoming Department of Workforce Services Coverage is mandatory for all employers Purchase through state-administered fund only. Self-insurance and private insurance is prohibited

 

Related: Workers’ Compensation: File and Prove a Claim

Each state may possess distinct exceptions to workers’ compensation rules regarding coverage and purchase options. Every state’s classification of what is considered an employee and employee types subject to workers’ compensation coverage may also differ.

All reported information is accurate as of April 11, 2022.  State laws and regulations regarding workers’ compensation are subject to change.

Sources for the table:

Workers’ Compensation Laws by State 

Workers’ Compensation Laws – State by State Comparison

Workers Compensation Requirements by State

Related: Can an Employer Sue an Employee for Poor Performance? 

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