Workers' Comp Requirements and Exemptions by State (2026)

Workers' Comp Requirements by State

Every state writes its own rule on which employers must carry workers' compensation insurance. Pick a state to see the employee threshold, who is exempt (sole proprietors, partners, corporate officers, farm, domestic and casual workers) and the penalty for going without coverage, each quoted from the state's own agency or statute.

Rules as of September 29, 2026. Employer coverage duties only: benefit amounts and claims are covered elsewhere on this site.

Workers' comp requirements and exemptions by state

Who must carry coverage, the status of six common exemptions and the penalty for going without, from each state's agency or statute. Exemption words: exempt (not required), covered, can opt out, depends (hours, wages, headcount, industry or ownership) and not verified (no official page we could check states the rule).

Sources: each state's workers' compensation agency or board and the state code, checked September 29, 2026. Select a state name to open it in the checker.
State	Who must carry (threshold)	Main exemptions	Penalty for no coverage	State agency
Alabama	Employers that regularly employ 5 or more employees, full-time or part-time, counting corporate officers. Also: Businesses that build or help build new single-family, detached homes on-site must carry coverage even with fewer than 5 employees.	Sole proprietors: not verified; Partners: not verified; Officers: can opt out; Farm: exempt; Domestic: exempt; Casual: exempt.	Misdemeanor with a fine of $100 to $1,000. The employer is also liable for 2 times the compensation otherwise payable, and a court may add civil penalties up to $100 per day.	Alabama Department of Workforce, Workers' Compensation Division
Alaska	Every employer with 1 or more employees in Alaska, unless approved as a self-insurer. No type of business is exempt.	Sole proprietors: exempt; Partners: exempt; Officers: depends; Farm: depends; Domestic: depends; Casual: depends.	Penalties up to $1,000 per employee for each day uninsured, and a mandatory $1,000 per day for violating a stop-work order.	Alaska Division of Workers' Compensation
Arizona	Every employer with any workers regularly employed in the business, including part-year work in the usual business. Employers of domestic servants are the stated exception.	Sole proprietors: exempt; Partners: exempt; Officers: depends; Farm: covered; Domestic: exempt; Casual: exempt.	Civil penalty up to $1,000, and up to $5,000 for a second or $10,000 for a third failure within 5 years. The injured worker may sue, and the employer loses the defenses of assumption of risk and contributory negligence.	Industrial Commission of Arizona
Arkansas	3 or more employees, or 2 or more in building or building repair work. Owners, sole proprietors, full-time partners, part-time employees and volunteers count toward the number. Also: A contractor who subcontracts any part of a contract, and a subcontractor, must have coverage with 1 or more employees.	Sole proprietors: can opt out; Partners: can opt out; Officers: can opt out; Farm: exempt; Domestic: exempt; Casual: not verified.	Penalties by the state and loss of the protections of workers' compensation law. Knowingly avoiding coverage through false statements or schemes is a Class D felony.	Arkansas Workers' Compensation Commission
California	Every employer, even with only 1 employee. Coverage includes part-time employees. Also: A roofer with no employees must still carry workers' compensation insurance.	Sole proprietors: exempt; Partners: can opt out; Officers: can opt out; Farm: covered; Domestic: depends; Casual: not verified.	Stop order barring the use of employee labor until coverage is secured. Failing to secure coverage is a misdemeanor: up to 1 year in county jail, or a fine up to double the premium but not less than $10,000, or both.	California Division of Workers' Compensation (DIR)
Colorado	Every employer with 1 or more employees, whether part-time, full-time or family members. Anyone paid for work is presumed to be an employee. Also: Every person doing construction work on a construction site must be covered. A contractor with no employees must be covered unless it files a rejection of coverage (Form WC 43).	Sole proprietors: depends; Partners: depends; Officers: can opt out; Farm: depends; Domestic: depends; Casual: depends.	Fines up to $500 for every day uninsured, and the business may be shut down. If an employee is hurt, the employer pays the claim plus a penalty of 25% of the benefits.	Colorado Division of Workers' Compensation (CDLE)
Connecticut	With few exceptions, every employer using the services of 1 or more employees for pay.	Sole proprietors: exempt; Partners: can opt out; Officers: can opt out; Farm: covered; Domestic: depends; Casual: exempt.	Civil penalty of at least $500 per employee or $5,000, whichever is less, up to $50,000, plus $100 for each day of continued noncompliance. Knowing and willful failure is a class D felony for the owner, partner, principal or officer.	Connecticut Workers' Compensation Commission
Delaware	Every employment with 1 or more employees, whether full-time, part-time, seasonal or temporary.	Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: exempt; Domestic: depends; Casual: exempt.	Civil penalty of 3 times the annual premium, then $10 per employee per day (at least $250 a day) while the violation continues. A stop-work order halts operations, and the Court of Chancery may bar the business from operating.	Delaware Department of Labor, Office of Workers' Compensation
District of Columbia	Employers with 1 or more employees should cover all of their employees in the District.	Sole proprietors: exempt; Partners: not verified; Officers: not verified; Farm: covered; Domestic: depends; Casual: exempt.	Fines up to $10,000. The employer and the president, secretary and treasurer of a corporation are personally liable for the fines and for benefits owed for injuries while uninsured.	D.C. Department of Employment Services, Office of Workers' Compensation
Florida	Construction: 1 or more employees, counting owners who are corporate officers or LLC members. Other industries: 4 or more employees.	Sole proprietors: depends; Partners: depends; Officers: can opt out; Farm: depends; Domestic: exempt; Casual: exempt.	Stop-work order and a penalty of 2 times the premium owed for the preceding 12 months, or $1,000, whichever is greater. Knowingly failing to secure coverage is unlawful and can be a felony of the third degree.	Florida Division of Workers' Compensation
Georgia	Employers that regularly employ 3 or more persons in their Georgia business, counting regular part-time employees and the officers or members of a corporation or LLC.	Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: not verified; Domestic: not verified; Casual: not verified.	Penalty of $500 to $5,000 per violation for failing to be insured. An employer who refuses or willfully neglects to carry insurance is guilty of a misdemeanor.	Georgia State Board of Workers' Compensation
Hawaii	Every employer with 1 or more employees, full-time or part-time, permanent or temporary, other than those excluded by law.	Sole proprietors: exempt; Partners: exempt; Officers: depends; Farm: covered; Domestic: depends; Casual: not verified.	Penalty of at least $500, or $100 per employee for every day without coverage, whichever is greater. After 14 days in default the employer may be barred by court order from operating.	Hawaii Department of Labor and Industrial Relations, Disability Compensation Division
Idaho	Every employer with 1 or more full-time, part-time, seasonal or occasional employees, in place before the first employee is hired.	Sole proprietors: exempt; Partners: exempt; Officers: depends; Farm: covered; Domestic: exempt; Casual: exempt.	The employer is personally liable for all benefits plus a 10% penalty, and owes $2 per employee per day or $25 per day, whichever is greater. Operating without coverage is a misdemeanor, and the Commission may seek an injunction to stop the business.	Idaho Industrial Commission
Illinois	The Act applies automatically to all employers in the businesses it lists, which include construction, any business using power-driven equipment, manufacturing, and any business selling goods or services to the public with a prior-year payroll over $1,000. Exception: A business that only sells goods or renders services to the public is not covered unless its annual payroll in the preceding year exceeded $1,000.	Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: depends; Domestic: depends; Casual: not verified.	Work-stop order ending all business operations; civil penalty up to $500 per day with a $10,000 minimum. Knowingly failing to provide coverage is a Class 4 felony for the owner, officers, directors, partners or LLC members.	Illinois Workers' Compensation Commission
Indiana	Every employer under the Act must insure its liability or prove its ability to pay benefits directly, except employers exempted by IC 22-3-2-5.	Sole proprietors: not verified; Partners: not verified; Officers: not verified; Farm: not verified; Domestic: not verified; Casual: not verified.	If an employer does not provide current proof of coverage by the tenth day after the Board asks, the Board sends a written violation notice and may assess a civil penalty of $100 per day until compliance.	Worker's Compensation Board of Indiana
Iowa	Every employer subject to the law must insure its liability or register as a self-insured employer.	Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: depends; Domestic: depends; Casual: depends.	Willfully and knowingly doing business without insurance is a class D felony. The injured worker may sue, and the employer cannot use the common-law defenses of contributory negligence, assumption of risk or the fellow servant rule.	Iowa Division of Workers' Compensation (Department of Inspections, Appeals, and Licensing)
Kansas	Employers with a total gross annual payroll over $20,000, counting all wages paid inside and outside Kansas. Family wages are left out except in corporations. Exception: Not required when the gross annual payroll for the preceding calendar year was not more than $20,000 and the current year is expected to stay at or under $20,000.	Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: exempt; Domestic: depends; Casual: covered.	Civil penalty of twice the annual premium or $25,000, whichever is greater. Knowing and intentional failure to secure coverage is a class A misdemeanor.	Kansas Department of Labor, Workers Compensation Division
Kentucky	Every employer with 1 or more employees, other than one engaged solely in agriculture. Family members, temporary and part-time workers count as employees.	Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: exempt; Domestic: depends; Casual: depends.	Fines of $100 to $1,000 for each employee for every day without coverage, and on conviction a fine of $100 to $1,000 or imprisonment of 30 to 180 days, or both. The employer loses the exclusive remedy protection and can be sued for pain and suffering and punitive damages.	Kentucky Department of Workers' Claims (Education and Labor Cabinet)
Louisiana	All employers must provide workers' compensation insurance for their employees, through an insurer, a group self-insurance fund or approved self-insurance.	Sole proprietors: can opt out; Partners: can opt out; Officers: can opt out; Farm: depends; Domestic: depends; Casual: not verified.	Civil penalty of up to $250 per employee for a first offense (capped at $10,000 for related violations) and up to $500 per employee for later offenses. Willful failure brings a fine of up to $250 a day, imprisonment of up to 1 year, or both, and a judge can issue a cease and desist order halting business operations.	Louisiana Workforce Commission, Office of Workers' Compensation Administration
Maine	Every private employer must insure all employees.	Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: depends; Domestic: exempt; Casual: depends.	Civil penalty of up to $10,000 or up to 108% of the premium that should have been paid, whichever is larger. A knowing violation is a Class D crime, and an uninsured employer loses a key defense in an injured employee's lawsuit.	Maine Workers' Compensation Board
Maryland	Every employer with at least 1 covered employee must secure compensation for all covered employees.	Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: depends; Domestic: depends; Casual: exempt.	After a hearing the Commission can order a penalty of up to $25,000, and up to $25,000 more if the employer does not obey an order to insure within 30 days. Failure to secure coverage is also a misdemeanor punishable by a fine of up to $5,000, imprisonment of up to 1 year, or both.	Maryland Workers' Compensation Commission
Massachusetts	All employers operating in Massachusetts must insure their employees, no matter the number of hours worked or the number of employees.	Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: covered; Domestic: depends; Casual: depends.	The DIA issues a stop work order with fines of at least $100 per day (up to $250 per day if appealed) until coverage is in place. Criminal charges can bring up to 1 year in prison and a fine of up to $1,500, and uninsured employers can be barred from public contracts for 3 years.	Massachusetts Department of Industrial Accidents
Michigan	Private employers that regularly employ 3 or more employees at one time must carry coverage (part-time employees count). Also: Private employers with fewer than 3 employees must carry coverage if at least 1 employee has worked 35 or more hours a week for 13 weeks or longer during the preceding 52 weeks.	Sole proprietors: exempt; Partners: can opt out; Officers: can opt out; Farm: depends; Domestic: depends; Casual: not verified.	Failing to secure coverage is a misdemeanor punishable by a fine of up to $1,000, imprisonment for up to 6 months, or both, and each day is a separate offense. An injured employee can also sue the uninsured employer for damages.	Michigan Workers' Disability Compensation Agency
Minnesota	All employers must insure, with no minimum number of employees; an employer with only 1 part-time employee generally must provide coverage.	Sole proprietors: exempt; Partners: exempt; Officers: depends; Farm: depends; Domestic: depends; Casual: exempt.	Penalty of up to $1,000 per employee for each week without insurance, plus an order to insure and to stop employing anyone without coverage. Willful failure is a gross misdemeanor, and if an uninsured worker is hurt the employer must repay the benefits plus a 65 percent penalty.	Minnesota Department of Labor and Industry
Mississippi	Employers with 5 or more employees regularly employed must carry coverage. Below 5 employees coverage is voluntary.	Sole proprietors: not verified; Partners: not verified; Officers: not verified; Farm: exempt; Domestic: exempt; Casual: not verified.	Failing to secure coverage carries the penalties of Miss. Code Ann. 71-3-83, whose amounts could not be read on an official page. Commission rules apply those penalties to an employer that does not furnish proof of new coverage within 30 days after a policy cancellation.	Mississippi Workers' Compensation Commission
Missouri	Employers with 5 or more employees must insure. Construction industry employers (who erect, demolish, alter or repair improvements) must insure with 1 or more employees. Family members count toward the total.	Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: exempt; Domestic: exempt; Casual: covered.	Knowingly failing to insure is a class A misdemeanor plus a penalty of up to 3 times the annual premium or up to $50,000, whichever is greater. A repeat violation is a class E felony.	Missouri Division of Workers' Compensation
Montana	The Act applies to all employers and all employees, with listed exceptions. An employer with any employee must be covered.	Sole proprietors: depends; Partners: depends; Officers: depends; Farm: covered; Domestic: exempt; Casual: exempt.	The department orders an uninsured employer to cease operations until it is covered; ignoring the order is a misdemeanor for each day. The penalty is up to double the premium for the past 3 years or $200, whichever is greater, plus $200 if not insured within 30 days of notice, and the employer must repay all benefits the fund pays.	Montana Department of Labor and Industry, Employment Standards Division (Uninsured Employers' Fund)
Nebraska	The Act applies to every employer with 1 or more employees in the regular trade, business, profession or vocation of the employer, including part-time employees and minors.	Sole proprietors: exempt; Partners: exempt; Officers: depends; Farm: depends; Domestic: exempt; Casual: depends.	Civil fine of up to $1,000 for each violation, with each day without coverage a separate violation. Willful failure is a Class I misdemeanor (imprisonment of up to 1 year, a $1,000 fine, or both), the employer can be enjoined from doing business, and an injured employee can sue while the employer loses its common law defenses.	Nebraska Workers' Compensation Court
Nevada	Unless excluded by statute, every employer with 1 or more employees, family members included. Also: Sole proprietors who are licensed contractors working within the scope of their license must secure coverage even with no employees.	Sole proprietors: depends; Partners: depends; Officers: can opt out; Farm: exempt; Domestic: exempt; Casual: exempt.	Administrative fine up to $15,000, premium penalties, an order to close the business until insured, and liability for all injury costs. A claim involving substantial bodily harm or death can bring a criminal penalty.	Nevada Division of Industrial Relations, Workers' Compensation Section
New Hampshire	Every employer with any employees, full or part-time, must cover them with workers' compensation insurance, including related employees and nonprofit employers.	Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: not verified; Domestic: covered; Casual: not verified.	Civil penalty of up to $2,500 plus up to $100 per employee for each day without coverage (for up to 1 year). The commissioner can ask the superior court to bar the employer from doing business until it complies, and purposely failing to secure coverage is a class B felony.	New Hampshire Department of Labor
New Jersey	Every corporation, partnership, LLC and sole proprietorship operating in New Jersey must insure (or self-insure) once 1 or more individuals perform services for pay. Corporate officers count; partners, LLC members and the sole owner do not.	Sole proprietors: exempt; Partners: exempt; Officers: covered; Farm: not verified; Domestic: covered; Casual: not verified.	Failing to insure is a disorderly persons offense, and a crime of the fourth degree if willful. Penalties of up to $5,000 for the first 10 days and up to $5,000 for each further 10-day period, and corporate officers can be personally liable.	New Jersey Department of Labor and Workforce Development, Division of Workers' Compensation
New Mexico	Employers of 3 or more workers must carry coverage; part-time and seasonal workers count. Employers in activities that require a Construction Industries Licensing Act license must carry coverage regardless of the number of employees.	Sole proprietors: depends; Partners: exempt; Officers: can opt out; Farm: covered; Domestic: exempt; Casual: exempt.	The director fines violations of the Act $25 to $1,000 for each occurrence, and a court can enjoin an uninsured employer from continuing business operations until it complies.	New Mexico Workers' Compensation Administration
New York	Virtually all employers must cover their employees, including part-time, temporary, seasonal, casual and unpaid workers. A business with 1 or more employees must be insured from day one.	Sole proprietors: exempt; Partners: exempt; Officers: depends; Farm: covered; Domestic: depends; Casual: covered.	Civil penalty of up to $2,000 for each 10-day period without coverage, or up to 2 times the cost of compensation for the payroll. Failing to cover 5 or fewer employees is a misdemeanor (fine of $1,000 to $5,000); more than 5 employees is a class E felony (fine of $5,000 to $50,000). A stop work order can halt all business activity.	New York State Workers' Compensation Board
North Carolina	Businesses that regularly employ 3 or more employees must carry coverage. Employers with fewer than 3 regular employees are exempt. Also: Employers of 1 or more employees in activities that involve the use or presence of radiation must have coverage.	Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: depends; Domestic: exempt; Casual: exempt.	Penalty of $1 per employee for each day without coverage, at least $20 and at most $100 a day. Willful failure is a Class H felony and neglect is a Class 1 misdemeanor, and the employer stays liable to injured employees for compensation or damages.	North Carolina Industrial Commission
North Dakota	All employers must insure all employees (full-time, part-time, seasonal and occasional) with WSI before they begin working. Coverage applies to any business that regularly employs 1 or more employees, except agricultural or domestic service. Where to buy: WSI is the only workers' compensation insurer in North Dakota; private insurers may not write it.	Sole proprietors: exempt; Partners: exempt; Officers: exempt; Farm: exempt; Domestic: exempt; Casual: exempt.	WSI can issue a cease and desist order, and employing anyone in violation of it brings a $10,000 penalty plus $100 a day. An uninsured employer owes the unpaid premium plus a 25 percent penalty. Willful failure costs $5,000 plus 3 times the unpaid premium and is a class A misdemeanor, or a class C felony if the premium due exceeds $1,000.	North Dakota Workforce Safety and Insurance (WSI)
Ohio	Every private employer that has 1 or more employees regularly in the same business or establishment. Where to buy: Private employers pay premiums into the state insurance fund set by the BWC administrator; an employer with sufficient financial ability may be granted the privilege to self-insure.	Sole proprietors: exempt; Partners: exempt; Officers: covered; Farm: covered; Domestic: depends; Casual: depends.	A noncomplying private employer is liable to injured employees for damages and loses the fellow servant, assumption of risk and contributory negligence defenses. BWC assesses premium for the period of noncompliance, calculates a no coverage penalty from the first hire date, and recovers claim costs it pays from the employer.	Ohio Bureau of Workers' Compensation
Oklahoma	Every employer must secure compensation for its employees, with a few exceptions. Exception: Employees of an employer with 5 or fewer total employees, all related to the employer within the second degree by blood or marriage or dependents living in its household, are not employees under the Act.	Sole proprietors: exempt; Partners: exempt; Officers: depends; Farm: depends; Domestic: depends; Casual: exempt.	Failing to secure compensation is a misdemeanor with a fine of up to $10,000. The Commission may also assess a fine of up to $1,000 per day of violation (up to $50,000 for the first violation) and may seek a court order barring further employment.	Oklahoma Workers' Compensation Commission
Oregon	Every employer that employs 1 or more subject workers in Oregon.	Sole proprietors: exempt; Partners: depends; Officers: depends; Farm: covered; Domestic: exempt; Casual: exempt.	WCD charges twice the premium that should have been paid, with a minimum of $1,000, for a first offense, plus up to $250 a day for continued noncompliance after the first order; a court can permanently enjoin the employer. The employer must also pay the injured worker the same benefits and can be sued for damages.	Oregon Workers' Compensation Division
Pennsylvania	Every employer with at least 1 employee, including part-time workers and family members, unless all of its workers fall into excluded categories.	Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: depends; Domestic: exempt; Casual: exempt.	Each day without coverage can be charged against the employer and its responsible individuals: a misdemeanor can bring a $2,500 fine and up to 1 year of imprisonment per day, and an intentional violation a felony with a $15,000 fine and up to 7 years per day. The employer can also be sued in tort and must repay benefits paid by the Uninsured Employers Guaranty Fund.	Pennsylvania Department of Labor and Industry, Bureau of Workers' Compensation
Rhode Island	With limited exceptions, every employer with 1 or more employees.	Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: depends; Domestic: exempt; Casual: exempt.	Knowingly failing to secure coverage is a felony with up to 2 years of imprisonment, plus a civil fine of up to $1,000 for each day without coverage; corporate officers are personally liable. DLT can also close a business that operates without the required insurance.	Rhode Island Department of Labor and Training, Division of Workers' Compensation
South Carolina	Employers that regularly employ 4 or more employees in the same business in South Carolina, counting part-time workers and family members. Also: The Commission says a general contractor is required to have coverage because employees of its subcontractors are its statutory employees. Exception: An employer whose total annual payroll in the previous calendar year was under $3,000 is exempt regardless of the number of employees.	Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: exempt; Domestic: depends; Casual: exempt.	The Commission can fine an employer that fails to secure coverage $1 per employee, at least $10 and at most $100, for each day, and the employer is liable for compensation or a lawsuit without its usual defenses. Willful refusal is a misdemeanor with a fine of $100 to $1,000, imprisonment of 30 days to 6 months, or both.	South Carolina Workers' Compensation Commission
South Dakota	All employers that use the service of another for pay, with only limited exceptions.	Sole proprietors: exempt; Partners: not verified; Officers: can opt out; Farm: exempt; Domestic: depends; Casual: exempt.	An employer that fails to insure is treated as having elected not to operate under the Act. The injured employee may sue the employer for damages, or claim medical costs plus twice the other compensation the Act allows.	South Dakota Department of Labor and Regulation, Division of Labor and Management
Tennessee	Construction services providers with 1 or more employees; other employers with 5 or more employees, counting minors, working family members and part-time employees. Also: Employers in the coal-mining industry must secure coverage if they have 1 employee.	Sole proprietors: depends; Partners: depends; Officers: can opt out; Farm: exempt; Domestic: exempt; Casual: exempt.	An employer that fails to carry required coverage is assessed a penalty equal to 1.5 times the avoided premium, which can rise to 3 times the avoided premium for multiple violations within 5 years.	Tennessee Bureau of Workers' Compensation
Texas	Coverage is optional for most private employers. Public employers must carry it, and a contractor on a public building or construction project must cover its employees on that project.	Sole proprietors: can opt out; Partners: can opt out; Officers: can opt out; Farm: depends; Domestic: exempt; Casual: depends.	Going without coverage is legal for most private employers, but a non-subscriber must file a notice with the Division and post notices for workers (failing to notify the Division is an administrative violation). If sued by an injured worker, it cannot use contributory negligence, assumption of risk or fellow-employee negligence as defenses.	Texas Department of Insurance, Division of Workers' Compensation
Utah	With a few exceptions, every employer that regularly employs 1 or more workers must provide coverage for all its employees.	Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: depends; Domestic: depends; Casual: exempt.	After notice and a finding of noncompliance, the employer is ordered to comply and pays a penalty of $1,000 or 3 times the premium it should have paid, whichever is greater.	Utah Labor Commission, Industrial Accidents Division
Vermont	Workers' compensation insurance is mandatory for all Vermont employers other than state, county and municipal bodies.	Sole proprietors: depends; Partners: depends; Officers: can opt out; Farm: depends; Domestic: exempt; Casual: exempt.	Stop-work order until coverage is secured. Penalties of up to $100 a day for the first 7 days and $150 a day after that, and up to $250 per employee per day. Officers and majority stockholders of a corporation are personally liable for benefits owed.	Vermont Department of Labor, Workers' Compensation Division
Virginia	Businesses with more than 2 employees regularly employed in Virginia, counting part-time, seasonal and temporary workers and working family members. Also: A contractor counts its subcontractors' employees: if its own employees plus all subcontractors' employees total more than 2, coverage is required.	Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: depends; Domestic: exempt; Casual: exempt.	Civil penalty up to $250 per day, capped at $50,000. The employer can be sued without the defenses of negligence, fellow-employee negligence or assumption of risk, and the Commission may order the business to cease operations.	Virginia Workers' Compensation Commission
Washington	Every employer hiring employees must open a workers' compensation account with L&I. The law covers all employments except the few it lists. Where to buy: Private workers' compensation insurance is not allowed: coverage must be bought from L&I, or the employer must be a certified self-insurer.	Sole proprietors: exempt; Partners: exempt; Officers: depends; Farm: covered; Domestic: depends; Casual: exempt.	Penalty of 50% to 100% of the cost of any injury before coverage, plus up to $1,000 or double the unpaid premiums, whichever is greater. Contractors can get a stop work order ($1,000 a day if violated), and knowingly failing to secure coverage to evade premiums is a class C felony.	Washington State Department of Labor & Industries (L&I)
West Virginia	Every person or business regularly employing another person in West Virginia must maintain workers' compensation insurance.	Sole proprietors: can opt out; Partners: can opt out; Officers: can opt out; Farm: depends; Domestic: exempt; Casual: depends.	A defaulted employer is liable to its employees for all damages and cannot use the fellow-servant, assumption of risk or contributory negligence defenses. The Insurance Commissioner posts a default notice at the workplace and assesses fines and license revocations.	West Virginia Offices of the Insurance Commissioner, Employer Coverage Unit
Wisconsin	Businesses that employ 3 or more full-time or part-time employees, from the day the third person is hired. Also: With 1 or more employees paid combined gross wages of $500 or more in any calendar quarter, coverage is required by the 10th day of the next quarter.	Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: depends; Domestic: exempt; Casual: exempt.	An uninsured employer pays the greater of twice the premium it should have paid or $750, plus forfeitures of $100 to $1,000 (or $10 to $100 per day after 10 days). Violating an order to cease operations is a class I felony.	Wisconsin Department of Workforce Development, Worker's Compensation Division
Wyoming	Required before work begins for businesses in extra-hazardous industries, which the statute lists by NAICS code (for example mining, utilities, construction and manufacturing). Other businesses may choose coverage. Where to buy: Coverage for extra-hazardous employers is provided through DWS, the Wyoming state fund.	Sole proprietors: exempt; Partners: exempt; Officers: exempt; Farm: exempt; Domestic: exempt; Casual: exempt.	An employer that does not apply for coverage is liable to the state for all benefits awarded to an injured employee. Unpaid premiums carry 1% interest per month, and the state can file liens and sue to collect.	Wyoming Department of Workforce Services, Workers' Compensation Division

Sources: each state's workers' compensation agency or board and the state code, checked September 29, 2026. Select a state name to open it in the checker.

State

Who must carry (threshold)

Main exemptions

Penalty for no coverage

State agency

Alabama

Employers that regularly employ 5 or more employees, full-time or part-time, counting corporate officers. Also: Businesses that build or help build new single-family, detached homes on-site must carry coverage even with fewer than 5 employees.

Sole proprietors: not verified; Partners: not verified; Officers: can opt out; Farm: exempt; Domestic: exempt; Casual: exempt.

Misdemeanor with a fine of $100 to $1,000. The employer is also liable for 2 times the compensation otherwise payable, and a court may add civil penalties up to $100 per day.

Alabama Department of Workforce, Workers' Compensation Division

Alaska

Every employer with 1 or more employees in Alaska, unless approved as a self-insurer. No type of business is exempt.

Sole proprietors: exempt; Partners: exempt; Officers: depends; Farm: depends; Domestic: depends; Casual: depends.

Penalties up to $1,000 per employee for each day uninsured, and a mandatory $1,000 per day for violating a stop-work order.

Alaska Division of Workers' Compensation

Arizona

Every employer with any workers regularly employed in the business, including part-year work in the usual business. Employers of domestic servants are the stated exception.

Sole proprietors: exempt; Partners: exempt; Officers: depends; Farm: covered; Domestic: exempt; Casual: exempt.

Civil penalty up to $1,000, and up to $5,000 for a second or $10,000 for a third failure within 5 years. The injured worker may sue, and the employer loses the defenses of assumption of risk and contributory negligence.

Industrial Commission of Arizona

Arkansas

3 or more employees, or 2 or more in building or building repair work. Owners, sole proprietors, full-time partners, part-time employees and volunteers count toward the number. Also: A contractor who subcontracts any part of a contract, and a subcontractor, must have coverage with 1 or more employees.

Sole proprietors: can opt out; Partners: can opt out; Officers: can opt out; Farm: exempt; Domestic: exempt; Casual: not verified.

Penalties by the state and loss of the protections of workers' compensation law. Knowingly avoiding coverage through false statements or schemes is a Class D felony.

Arkansas Workers' Compensation Commission

California

Every employer, even with only 1 employee. Coverage includes part-time employees. Also: A roofer with no employees must still carry workers' compensation insurance.

Sole proprietors: exempt; Partners: can opt out; Officers: can opt out; Farm: covered; Domestic: depends; Casual: not verified.

Stop order barring the use of employee labor until coverage is secured. Failing to secure coverage is a misdemeanor: up to 1 year in county jail, or a fine up to double the premium but not less than $10,000, or both.

California Division of Workers' Compensation (DIR)

Colorado

Every employer with 1 or more employees, whether part-time, full-time or family members. Anyone paid for work is presumed to be an employee. Also: Every person doing construction work on a construction site must be covered. A contractor with no employees must be covered unless it files a rejection of coverage (Form WC 43).

Sole proprietors: depends; Partners: depends; Officers: can opt out; Farm: depends; Domestic: depends; Casual: depends.

Fines up to $500 for every day uninsured, and the business may be shut down. If an employee is hurt, the employer pays the claim plus a penalty of 25% of the benefits.

Colorado Division of Workers' Compensation (CDLE)

Connecticut

With few exceptions, every employer using the services of 1 or more employees for pay.

Sole proprietors: exempt; Partners: can opt out; Officers: can opt out; Farm: covered; Domestic: depends; Casual: exempt.

Civil penalty of at least $500 per employee or $5,000, whichever is less, up to $50,000, plus $100 for each day of continued noncompliance. Knowing and willful failure is a class D felony for the owner, partner, principal or officer.

Connecticut Workers' Compensation Commission

Delaware

Every employment with 1 or more employees, whether full-time, part-time, seasonal or temporary.

Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: exempt; Domestic: depends; Casual: exempt.

Civil penalty of 3 times the annual premium, then $10 per employee per day (at least $250 a day) while the violation continues. A stop-work order halts operations, and the Court of Chancery may bar the business from operating.

Delaware Department of Labor, Office of Workers' Compensation

District of Columbia

Employers with 1 or more employees should cover all of their employees in the District.

Sole proprietors: exempt; Partners: not verified; Officers: not verified; Farm: covered; Domestic: depends; Casual: exempt.

Fines up to $10,000. The employer and the president, secretary and treasurer of a corporation are personally liable for the fines and for benefits owed for injuries while uninsured.

D.C. Department of Employment Services, Office of Workers' Compensation

Florida

Construction: 1 or more employees, counting owners who are corporate officers or LLC members. Other industries: 4 or more employees.

Sole proprietors: depends; Partners: depends; Officers: can opt out; Farm: depends; Domestic: exempt; Casual: exempt.

Stop-work order and a penalty of 2 times the premium owed for the preceding 12 months, or $1,000, whichever is greater. Knowingly failing to secure coverage is unlawful and can be a felony of the third degree.

Florida Division of Workers' Compensation

Georgia

Employers that regularly employ 3 or more persons in their Georgia business, counting regular part-time employees and the officers or members of a corporation or LLC.

Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: not verified; Domestic: not verified; Casual: not verified.

Penalty of $500 to $5,000 per violation for failing to be insured. An employer who refuses or willfully neglects to carry insurance is guilty of a misdemeanor.

Georgia State Board of Workers' Compensation

Hawaii

Every employer with 1 or more employees, full-time or part-time, permanent or temporary, other than those excluded by law.

Sole proprietors: exempt; Partners: exempt; Officers: depends; Farm: covered; Domestic: depends; Casual: not verified.

Penalty of at least $500, or $100 per employee for every day without coverage, whichever is greater. After 14 days in default the employer may be barred by court order from operating.

Hawaii Department of Labor and Industrial Relations, Disability Compensation Division

Idaho

Every employer with 1 or more full-time, part-time, seasonal or occasional employees, in place before the first employee is hired.

Sole proprietors: exempt; Partners: exempt; Officers: depends; Farm: covered; Domestic: exempt; Casual: exempt.

The employer is personally liable for all benefits plus a 10% penalty, and owes $2 per employee per day or $25 per day, whichever is greater. Operating without coverage is a misdemeanor, and the Commission may seek an injunction to stop the business.

Idaho Industrial Commission

Illinois

The Act applies automatically to all employers in the businesses it lists, which include construction, any business using power-driven equipment, manufacturing, and any business selling goods or services to the public with a prior-year payroll over $1,000. Exception: A business that only sells goods or renders services to the public is not covered unless its annual payroll in the preceding year exceeded $1,000.

Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: depends; Domestic: depends; Casual: not verified.

Work-stop order ending all business operations; civil penalty up to $500 per day with a $10,000 minimum. Knowingly failing to provide coverage is a Class 4 felony for the owner, officers, directors, partners or LLC members.

Illinois Workers' Compensation Commission

Indiana

Every employer under the Act must insure its liability or prove its ability to pay benefits directly, except employers exempted by IC 22-3-2-5.

Sole proprietors: not verified; Partners: not verified; Officers: not verified; Farm: not verified; Domestic: not verified; Casual: not verified.

If an employer does not provide current proof of coverage by the tenth day after the Board asks, the Board sends a written violation notice and may assess a civil penalty of $100 per day until compliance.

Worker's Compensation Board of Indiana

Iowa

Every employer subject to the law must insure its liability or register as a self-insured employer.

Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: depends; Domestic: depends; Casual: depends.

Willfully and knowingly doing business without insurance is a class D felony. The injured worker may sue, and the employer cannot use the common-law defenses of contributory negligence, assumption of risk or the fellow servant rule.

Iowa Division of Workers' Compensation (Department of Inspections, Appeals, and Licensing)

Kansas

Employers with a total gross annual payroll over $20,000, counting all wages paid inside and outside Kansas. Family wages are left out except in corporations. Exception: Not required when the gross annual payroll for the preceding calendar year was not more than $20,000 and the current year is expected to stay at or under $20,000.

Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: exempt; Domestic: depends; Casual: covered.

Civil penalty of twice the annual premium or $25,000, whichever is greater. Knowing and intentional failure to secure coverage is a class A misdemeanor.

Kansas Department of Labor, Workers Compensation Division

Kentucky

Every employer with 1 or more employees, other than one engaged solely in agriculture. Family members, temporary and part-time workers count as employees.

Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: exempt; Domestic: depends; Casual: depends.

Fines of $100 to $1,000 for each employee for every day without coverage, and on conviction a fine of $100 to $1,000 or imprisonment of 30 to 180 days, or both. The employer loses the exclusive remedy protection and can be sued for pain and suffering and punitive damages.

Kentucky Department of Workers' Claims (Education and Labor Cabinet)

Louisiana

All employers must provide workers' compensation insurance for their employees, through an insurer, a group self-insurance fund or approved self-insurance.

Sole proprietors: can opt out; Partners: can opt out; Officers: can opt out; Farm: depends; Domestic: depends; Casual: not verified.

Civil penalty of up to $250 per employee for a first offense (capped at $10,000 for related violations) and up to $500 per employee for later offenses. Willful failure brings a fine of up to $250 a day, imprisonment of up to 1 year, or both, and a judge can issue a cease and desist order halting business operations.

Louisiana Workforce Commission, Office of Workers' Compensation Administration

Maine

Every private employer must insure all employees.

Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: depends; Domestic: exempt; Casual: depends.

Civil penalty of up to $10,000 or up to 108% of the premium that should have been paid, whichever is larger. A knowing violation is a Class D crime, and an uninsured employer loses a key defense in an injured employee's lawsuit.

Maine Workers' Compensation Board

Maryland

Every employer with at least 1 covered employee must secure compensation for all covered employees.

Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: depends; Domestic: depends; Casual: exempt.

After a hearing the Commission can order a penalty of up to $25,000, and up to $25,000 more if the employer does not obey an order to insure within 30 days. Failure to secure coverage is also a misdemeanor punishable by a fine of up to $5,000, imprisonment of up to 1 year, or both.

Maryland Workers' Compensation Commission

Massachusetts

All employers operating in Massachusetts must insure their employees, no matter the number of hours worked or the number of employees.

Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: covered; Domestic: depends; Casual: depends.

The DIA issues a stop work order with fines of at least $100 per day (up to $250 per day if appealed) until coverage is in place. Criminal charges can bring up to 1 year in prison and a fine of up to $1,500, and uninsured employers can be barred from public contracts for 3 years.

Massachusetts Department of Industrial Accidents

Michigan

Private employers that regularly employ 3 or more employees at one time must carry coverage (part-time employees count). Also: Private employers with fewer than 3 employees must carry coverage if at least 1 employee has worked 35 or more hours a week for 13 weeks or longer during the preceding 52 weeks.

Sole proprietors: exempt; Partners: can opt out; Officers: can opt out; Farm: depends; Domestic: depends; Casual: not verified.

Failing to secure coverage is a misdemeanor punishable by a fine of up to $1,000, imprisonment for up to 6 months, or both, and each day is a separate offense. An injured employee can also sue the uninsured employer for damages.

Michigan Workers' Disability Compensation Agency

Minnesota

All employers must insure, with no minimum number of employees; an employer with only 1 part-time employee generally must provide coverage.

Sole proprietors: exempt; Partners: exempt; Officers: depends; Farm: depends; Domestic: depends; Casual: exempt.

Penalty of up to $1,000 per employee for each week without insurance, plus an order to insure and to stop employing anyone without coverage. Willful failure is a gross misdemeanor, and if an uninsured worker is hurt the employer must repay the benefits plus a 65 percent penalty.

Minnesota Department of Labor and Industry

Mississippi

Employers with 5 or more employees regularly employed must carry coverage. Below 5 employees coverage is voluntary.

Sole proprietors: not verified; Partners: not verified; Officers: not verified; Farm: exempt; Domestic: exempt; Casual: not verified.

Failing to secure coverage carries the penalties of Miss. Code Ann. 71-3-83, whose amounts could not be read on an official page. Commission rules apply those penalties to an employer that does not furnish proof of new coverage within 30 days after a policy cancellation.

Mississippi Workers' Compensation Commission

Missouri

Employers with 5 or more employees must insure. Construction industry employers (who erect, demolish, alter or repair improvements) must insure with 1 or more employees. Family members count toward the total.

Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: exempt; Domestic: exempt; Casual: covered.

Knowingly failing to insure is a class A misdemeanor plus a penalty of up to 3 times the annual premium or up to $50,000, whichever is greater. A repeat violation is a class E felony.

Missouri Division of Workers' Compensation

Montana

The Act applies to all employers and all employees, with listed exceptions. An employer with any employee must be covered.

Sole proprietors: depends; Partners: depends; Officers: depends; Farm: covered; Domestic: exempt; Casual: exempt.

The department orders an uninsured employer to cease operations until it is covered; ignoring the order is a misdemeanor for each day. The penalty is up to double the premium for the past 3 years or $200, whichever is greater, plus $200 if not insured within 30 days of notice, and the employer must repay all benefits the fund pays.

Montana Department of Labor and Industry, Employment Standards Division (Uninsured Employers' Fund)

Nebraska

The Act applies to every employer with 1 or more employees in the regular trade, business, profession or vocation of the employer, including part-time employees and minors.

Sole proprietors: exempt; Partners: exempt; Officers: depends; Farm: depends; Domestic: exempt; Casual: depends.

Civil fine of up to $1,000 for each violation, with each day without coverage a separate violation. Willful failure is a Class I misdemeanor (imprisonment of up to 1 year, a $1,000 fine, or both), the employer can be enjoined from doing business, and an injured employee can sue while the employer loses its common law defenses.

Nebraska Workers' Compensation Court

Nevada

Unless excluded by statute, every employer with 1 or more employees, family members included. Also: Sole proprietors who are licensed contractors working within the scope of their license must secure coverage even with no employees.

Sole proprietors: depends; Partners: depends; Officers: can opt out; Farm: exempt; Domestic: exempt; Casual: exempt.

Administrative fine up to $15,000, premium penalties, an order to close the business until insured, and liability for all injury costs. A claim involving substantial bodily harm or death can bring a criminal penalty.

Nevada Division of Industrial Relations, Workers' Compensation Section

New Hampshire

Every employer with any employees, full or part-time, must cover them with workers' compensation insurance, including related employees and nonprofit employers.

Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: not verified; Domestic: covered; Casual: not verified.

Civil penalty of up to $2,500 plus up to $100 per employee for each day without coverage (for up to 1 year). The commissioner can ask the superior court to bar the employer from doing business until it complies, and purposely failing to secure coverage is a class B felony.

New Hampshire Department of Labor

New Jersey

Every corporation, partnership, LLC and sole proprietorship operating in New Jersey must insure (or self-insure) once 1 or more individuals perform services for pay. Corporate officers count; partners, LLC members and the sole owner do not.

Sole proprietors: exempt; Partners: exempt; Officers: covered; Farm: not verified; Domestic: covered; Casual: not verified.

Failing to insure is a disorderly persons offense, and a crime of the fourth degree if willful. Penalties of up to $5,000 for the first 10 days and up to $5,000 for each further 10-day period, and corporate officers can be personally liable.

New Jersey Department of Labor and Workforce Development, Division of Workers' Compensation

New Mexico

Employers of 3 or more workers must carry coverage; part-time and seasonal workers count. Employers in activities that require a Construction Industries Licensing Act license must carry coverage regardless of the number of employees.

Sole proprietors: depends; Partners: exempt; Officers: can opt out; Farm: covered; Domestic: exempt; Casual: exempt.

The director fines violations of the Act $25 to $1,000 for each occurrence, and a court can enjoin an uninsured employer from continuing business operations until it complies.

New Mexico Workers' Compensation Administration

New York

Virtually all employers must cover their employees, including part-time, temporary, seasonal, casual and unpaid workers. A business with 1 or more employees must be insured from day one.

Sole proprietors: exempt; Partners: exempt; Officers: depends; Farm: covered; Domestic: depends; Casual: covered.

Civil penalty of up to $2,000 for each 10-day period without coverage, or up to 2 times the cost of compensation for the payroll. Failing to cover 5 or fewer employees is a misdemeanor (fine of $1,000 to $5,000); more than 5 employees is a class E felony (fine of $5,000 to $50,000). A stop work order can halt all business activity.

New York State Workers' Compensation Board

North Carolina

Businesses that regularly employ 3 or more employees must carry coverage. Employers with fewer than 3 regular employees are exempt. Also: Employers of 1 or more employees in activities that involve the use or presence of radiation must have coverage.

Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: depends; Domestic: exempt; Casual: exempt.

Penalty of $1 per employee for each day without coverage, at least $20 and at most $100 a day. Willful failure is a Class H felony and neglect is a Class 1 misdemeanor, and the employer stays liable to injured employees for compensation or damages.

North Carolina Industrial Commission

North Dakota

All employers must insure all employees (full-time, part-time, seasonal and occasional) with WSI before they begin working. Coverage applies to any business that regularly employs 1 or more employees, except agricultural or domestic service. Where to buy: WSI is the only workers' compensation insurer in North Dakota; private insurers may not write it.

Sole proprietors: exempt; Partners: exempt; Officers: exempt; Farm: exempt; Domestic: exempt; Casual: exempt.

WSI can issue a cease and desist order, and employing anyone in violation of it brings a $10,000 penalty plus $100 a day. An uninsured employer owes the unpaid premium plus a 25 percent penalty. Willful failure costs $5,000 plus 3 times the unpaid premium and is a class A misdemeanor, or a class C felony if the premium due exceeds $1,000.

North Dakota Workforce Safety and Insurance (WSI)

Ohio

Every private employer that has 1 or more employees regularly in the same business or establishment. Where to buy: Private employers pay premiums into the state insurance fund set by the BWC administrator; an employer with sufficient financial ability may be granted the privilege to self-insure.

Sole proprietors: exempt; Partners: exempt; Officers: covered; Farm: covered; Domestic: depends; Casual: depends.

A noncomplying private employer is liable to injured employees for damages and loses the fellow servant, assumption of risk and contributory negligence defenses. BWC assesses premium for the period of noncompliance, calculates a no coverage penalty from the first hire date, and recovers claim costs it pays from the employer.

Ohio Bureau of Workers' Compensation

Oklahoma

Every employer must secure compensation for its employees, with a few exceptions. Exception: Employees of an employer with 5 or fewer total employees, all related to the employer within the second degree by blood or marriage or dependents living in its household, are not employees under the Act.

Sole proprietors: exempt; Partners: exempt; Officers: depends; Farm: depends; Domestic: depends; Casual: exempt.

Failing to secure compensation is a misdemeanor with a fine of up to $10,000. The Commission may also assess a fine of up to $1,000 per day of violation (up to $50,000 for the first violation) and may seek a court order barring further employment.

Oklahoma Workers' Compensation Commission

Oregon

Every employer that employs 1 or more subject workers in Oregon.

Sole proprietors: exempt; Partners: depends; Officers: depends; Farm: covered; Domestic: exempt; Casual: exempt.

WCD charges twice the premium that should have been paid, with a minimum of $1,000, for a first offense, plus up to $250 a day for continued noncompliance after the first order; a court can permanently enjoin the employer. The employer must also pay the injured worker the same benefits and can be sued for damages.

Oregon Workers' Compensation Division

Pennsylvania

Every employer with at least 1 employee, including part-time workers and family members, unless all of its workers fall into excluded categories.

Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: depends; Domestic: exempt; Casual: exempt.

Each day without coverage can be charged against the employer and its responsible individuals: a misdemeanor can bring a $2,500 fine and up to 1 year of imprisonment per day, and an intentional violation a felony with a $15,000 fine and up to 7 years per day. The employer can also be sued in tort and must repay benefits paid by the Uninsured Employers Guaranty Fund.

Pennsylvania Department of Labor and Industry, Bureau of Workers' Compensation

Rhode Island

With limited exceptions, every employer with 1 or more employees.

Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: depends; Domestic: exempt; Casual: exempt.

Knowingly failing to secure coverage is a felony with up to 2 years of imprisonment, plus a civil fine of up to $1,000 for each day without coverage; corporate officers are personally liable. DLT can also close a business that operates without the required insurance.

Rhode Island Department of Labor and Training, Division of Workers' Compensation

South Carolina

Employers that regularly employ 4 or more employees in the same business in South Carolina, counting part-time workers and family members. Also: The Commission says a general contractor is required to have coverage because employees of its subcontractors are its statutory employees. Exception: An employer whose total annual payroll in the previous calendar year was under $3,000 is exempt regardless of the number of employees.

Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: exempt; Domestic: depends; Casual: exempt.

The Commission can fine an employer that fails to secure coverage $1 per employee, at least $10 and at most $100, for each day, and the employer is liable for compensation or a lawsuit without its usual defenses. Willful refusal is a misdemeanor with a fine of $100 to $1,000, imprisonment of 30 days to 6 months, or both.

South Carolina Workers' Compensation Commission

South Dakota

All employers that use the service of another for pay, with only limited exceptions.

Sole proprietors: exempt; Partners: not verified; Officers: can opt out; Farm: exempt; Domestic: depends; Casual: exempt.

An employer that fails to insure is treated as having elected not to operate under the Act. The injured employee may sue the employer for damages, or claim medical costs plus twice the other compensation the Act allows.

South Dakota Department of Labor and Regulation, Division of Labor and Management

Tennessee

Construction services providers with 1 or more employees; other employers with 5 or more employees, counting minors, working family members and part-time employees. Also: Employers in the coal-mining industry must secure coverage if they have 1 employee.

Sole proprietors: depends; Partners: depends; Officers: can opt out; Farm: exempt; Domestic: exempt; Casual: exempt.

An employer that fails to carry required coverage is assessed a penalty equal to 1.5 times the avoided premium, which can rise to 3 times the avoided premium for multiple violations within 5 years.

Tennessee Bureau of Workers' Compensation

Texas

Coverage is optional for most private employers. Public employers must carry it, and a contractor on a public building or construction project must cover its employees on that project.

Sole proprietors: can opt out; Partners: can opt out; Officers: can opt out; Farm: depends; Domestic: exempt; Casual: depends.

Going without coverage is legal for most private employers, but a non-subscriber must file a notice with the Division and post notices for workers (failing to notify the Division is an administrative violation). If sued by an injured worker, it cannot use contributory negligence, assumption of risk or fellow-employee negligence as defenses.

Texas Department of Insurance, Division of Workers' Compensation

Utah

With a few exceptions, every employer that regularly employs 1 or more workers must provide coverage for all its employees.

Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: depends; Domestic: depends; Casual: exempt.

After notice and a finding of noncompliance, the employer is ordered to comply and pays a penalty of $1,000 or 3 times the premium it should have paid, whichever is greater.

Utah Labor Commission, Industrial Accidents Division

Vermont

Workers' compensation insurance is mandatory for all Vermont employers other than state, county and municipal bodies.

Sole proprietors: depends; Partners: depends; Officers: can opt out; Farm: depends; Domestic: exempt; Casual: exempt.

Stop-work order until coverage is secured. Penalties of up to $100 a day for the first 7 days and $150 a day after that, and up to $250 per employee per day. Officers and majority stockholders of a corporation are personally liable for benefits owed.

Vermont Department of Labor, Workers' Compensation Division

Virginia

Businesses with more than 2 employees regularly employed in Virginia, counting part-time, seasonal and temporary workers and working family members. Also: A contractor counts its subcontractors' employees: if its own employees plus all subcontractors' employees total more than 2, coverage is required.

Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: depends; Domestic: exempt; Casual: exempt.

Civil penalty up to $250 per day, capped at $50,000. The employer can be sued without the defenses of negligence, fellow-employee negligence or assumption of risk, and the Commission may order the business to cease operations.

Virginia Workers' Compensation Commission

Washington

Every employer hiring employees must open a workers' compensation account with L&I. The law covers all employments except the few it lists. Where to buy: Private workers' compensation insurance is not allowed: coverage must be bought from L&I, or the employer must be a certified self-insurer.

Sole proprietors: exempt; Partners: exempt; Officers: depends; Farm: covered; Domestic: depends; Casual: exempt.

Penalty of 50% to 100% of the cost of any injury before coverage, plus up to $1,000 or double the unpaid premiums, whichever is greater. Contractors can get a stop work order ($1,000 a day if violated), and knowingly failing to secure coverage to evade premiums is a class C felony.

Washington State Department of Labor & Industries (L&I)

West Virginia

Every person or business regularly employing another person in West Virginia must maintain workers' compensation insurance.

Sole proprietors: can opt out; Partners: can opt out; Officers: can opt out; Farm: depends; Domestic: exempt; Casual: depends.

A defaulted employer is liable to its employees for all damages and cannot use the fellow-servant, assumption of risk or contributory negligence defenses. The Insurance Commissioner posts a default notice at the workplace and assesses fines and license revocations.

West Virginia Offices of the Insurance Commissioner, Employer Coverage Unit

Wisconsin

Businesses that employ 3 or more full-time or part-time employees, from the day the third person is hired. Also: With 1 or more employees paid combined gross wages of $500 or more in any calendar quarter, coverage is required by the 10th day of the next quarter.

Sole proprietors: exempt; Partners: exempt; Officers: can opt out; Farm: depends; Domestic: exempt; Casual: exempt.

An uninsured employer pays the greater of twice the premium it should have paid or $750, plus forfeitures of $100 to $1,000 (or $10 to $100 per day after 10 days). Violating an order to cease operations is a class I felony.

Wisconsin Department of Workforce Development, Worker's Compensation Division

Wyoming

Required before work begins for businesses in extra-hazardous industries, which the statute lists by NAICS code (for example mining, utilities, construction and manufacturing). Other businesses may choose coverage. Where to buy: Coverage for extra-hazardous employers is provided through DWS, the Wyoming state fund.

Sole proprietors: exempt; Partners: exempt; Officers: exempt; Farm: exempt; Domestic: exempt; Casual: exempt.

An employer that does not apply for coverage is liable to the state for all benefits awarded to an injured employee. Unpaid premiums carry 1% interest per month, and the state can file liens and sue to collect.

Wyoming Department of Workforce Services, Workers' Compensation Division

Workers' comp requirements: common questions

How many employees before workers' comp is required?

In 36 of the 51 jurisdictions in the table, coverage is required from the first employee, subject to each state's exemptions (a few, such as Illinois, Kansas and Oklahoma, also set payroll or business limits). 13 states use a higher headcount: Alabama 5; Arkansas 3 (2 in construction); Florida 4 (1 in construction); Georgia 3; Michigan 3; Mississippi 5; Missouri 5 (1 in construction); New Mexico 3 (1 in construction); North Carolina 3; South Carolina 4; Tennessee 5 (1 in construction); Virginia 3; Wisconsin 3. Several of those add rules that can apply below that number, such as payroll, hours, home building or subcontracting (Alabama, Arkansas, Michigan, North Carolina, South Carolina, Tennessee, Virginia and Wisconsin); the checker shows them. Texas lets most private employers choose whether to carry coverage, and Wyoming requires it only for the extra-hazardous industries its statute lists.

Which state does not require workers' comp?

Texas is the only state in the table where coverage is optional for most private employers. Public employers must carry it, and a contractor on a public building or construction project must cover its employees on that project. Wyoming requires coverage only for listed extra-hazardous work. Every other state requires employers that meet its rule to insure or qualify to self-insure.

Do sole proprietors and business owners need workers' comp?

Usually not for themselves. In 37 jurisdictions the owner of a sole proprietorship is exempt, often with the option to elect coverage; in Arkansas, Louisiana, Texas and West Virginia the owner is counted or covered unless excluded by a filing or a policy endorsement; and in Colorado, Florida, Montana, Nevada, New Mexico, Tennessee and Vermont the answer depends on the industry or the kind of work. Corporate officers can opt out in 33 jurisdictions, usually by filing a form with the state or the insurer. An owner with employees must still cover those employees.

Are farm workers and household employees exempt?

It varies more than any other rule. Farm labor is exempt in 13 jurisdictions, covered on the usual terms in 13, and depends on headcount, payroll or days worked in 21 (4 not verified). Domestic workers in private homes are exempt in 24 jurisdictions, covered on the usual terms in 2 and depend on hours or wages in 23 (2 not verified). Pick a state in the checker to see the exact wording.

What happens if an employer doesn't carry required workers' comp?

It depends on the state. In the penalty column, 14 jurisdictions list stop-work or cease-operations orders, 14 list felony charges (for example for knowing failure or for ignoring a stop-work order), 13 say the injured worker can sue the employer, and 6 make the employer repay or pay the benefits. Fines range from daily amounts to multiples of the premium that should have been paid.

Can every employer buy workers' comp from a private insurer?

No. In North Dakota, Ohio, Washington and Wyoming coverage comes from the state fund, with self-insurance allowed only where the state permits it. Elsewhere employers buy from licensed insurers, join a group self-insurance fund where allowed, or qualify to self-insure.

How this was checked. Every row was read on the state's workers' compensation agency site or the state code, and each statement in the checker carries the quote it rests on. Where a state site blocks automated reading, the quote comes from a dated web.archive.org copy of the official page (2025 or later) and is marked. The U.S. Department of Labor's Office of Workers' Compensation Programs runs federal programs only (federal employees, longshore, coal mine and nuclear weapons workers); private employers follow the state rules above. Last checked September 29, 2026.

For what to do after an injury, see first steps after a workplace injury and how the workplace injury claim process works.

Know what your workplace injury claim is worth before you answer

Getting hurt on the job opens two distinct legal paths, and most injured workers only know about one. Workers' compensation covers medical bills and partial lost wages regardless of fault. But if a third party, a subcontractor, equipment manufacturer, or property owner other than your employer, contributed to your injury, you may also have a personal injury lawsuit with access to damages that workers' comp does not provide. Our estimator helps you identify which paths apply.

How this works

Three steps, no phone number required

Most people arrive here after an insurance adjuster has already named a figure. The point of this page is simple: give you an independent second number, and the reasoning behind it, before you answer.

Step 01

Gather what you can document

Medical bills and expected future care, wages you actually lost, repair or total-loss figures, and the out-of-pocket costs people usually forget, travel to appointments, braces and devices, paid help at home.

Step 02

Run the estimator

It applies the multiplier method adjusters commonly use to non-economic damages, then adjusts for your state's comparative-fault rule and the policy limit that actually caps most claims.

Step 03

Take the range to a licensed attorney

The output is a discussion range, never a valuation. Bring it to a lawyer licensed in your state, most personal-injury consultations are free and fees are contingent, and let them price the parts a calculator cannot see.

By situation

Guides for your situation

Fault rules, insurance layers and typical evidence differ sharply between these. Start with the one that matches your facts.

Workplace Injury Claim Process

How to file workers' comp and third-party claims after a job injury.

Settlement Timeline for Workplace Cases

How long workers' comp and third-party injury cases typically take.

First Steps After a Workplace Injury

What to do in the first 72 hours to protect both claim paths.

Employer and Insurer Tactics

How workers' comp insurers and third-party adjusters limit your recovery.

By state

State rules that change what a claim is worth

Comparative fault, filing deadlines, damage caps, minimum liability limits and no-fault requirements are all set state by state. Pick yours.

Legal notice

WorkplaceInjuryLawyer.us is an informational website, not a law firm. It is operated by Mustafa Bilgic, an individual who is not a licensed attorney. Nothing here is legal advice, nothing creates an attorney-client relationship, and no calculator output is a valuation or an offer.

We do not take cases, review documents, contact insurers or refer you to a particular lawyer. Deadlines and fault rules vary by state and a missed deadline can end a valid claim permanently, consult a licensed attorney in your state before you accept, reject or file anything. Your state bar's referral service and the American Bar Association's Find Legal Help directory are independent starting points.

Questions

Questions people ask before they answer the adjuster

Can I sue my employer for a workplace injury?

In most states, no. Workers' compensation is generally the exclusive remedy against your employer. The trade-off is that you receive benefits without proving fault. Exceptions exist in cases of intentional harm or egregious safety violations, but these are narrow and state-specific. Third-party lawsuits target parties other than your employer.

What damages can I get through workers' comp versus a third-party lawsuit?

Workers' comp provides medical treatment, partial wage replacement (usually about two-thirds of your average wage), and permanent impairment benefits. A third-party lawsuit can recover full lost wages, future earning capacity, pain and suffering, and other non-economic damages that workers' comp excludes. Pursuing both tracks when a third party is involved maximizes total recovery.

What if my employer retaliates for filing a workers' comp claim?

Retaliation for filing a workers' compensation claim is illegal in every state. If your employer fires you, demotes you, or reduces your hours because you filed a claim, you may have a separate retaliation cause of action. Document everything and consult an attorney immediately.

How long do workplace injury cases take to resolve?

Workers' comp claims for accepted injuries can begin paying benefits within weeks. Disputed claims heard by an administrative judge may take several months. Third-party lawsuits follow civil litigation timelines, commonly six months to two years, longer if the injuries are severe or liability is contested.

What is the deadline for reporting a workplace injury?

Reporting deadlines vary by state but are often 30 to 90 days from the date of injury. For occupational diseases that develop over time, the clock may start when you knew or should have known the condition was work-related. Report immediately, delayed notice is the top reason claims are denied.

Published and maintained by

Mustafa Bilgic: independent operator, WorkplaceInjuryLawyer.us

Not an attorney and not affiliated with any law firm. Pages here summarise publicly available law, federal agency data and documented insurance practice, with sources listed on each page.

Sources used across this site: state comparative-fault statutes · Insurance Information Institute · Bureau of Labor Statistics · IRS Pub. 4345 · NHTSA
Last reviewed 2026-08-25.

Workers' Comp Requirements by State

Does an employer need workers' comp in your state?