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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