Workers’ Compensation Insurance Requirements by State (2026 Guide)

If you’re starting your own business, do you need to buy workers’ compensation insurance? Alternatively, how do you know whether your employer has to provide workers’ comp coverage? State law determines workers’ compensation requirements for employers, with exceptions for federal employees. We’ll explain the workers’ compensation insurance requirements by state below based on reviewing all applicable laws.

Pro Tip: To learn even more about how workers' comp works, read our FAQs.

Guide to Workers’ Compensation Insurance Requirements By State: Key Takeaways

• Workers’ compensation insurance is a no-fault system where injured employees waive their right to sue employers in exchange for benefits.
• Workers’ compensation laws in every state determine the claims process and benefits available to injured workers. Federal employees in every state follow a different process.
• The only U.S. state that does not require any employer to carry workers’ compensation insurance is Texas.
• State workers’ compensation laws generally require employers to carry insurance that covers medical bills, lost wages, burial and funeral costs, and vocational rehabilitation.
• States have the right to fine (and in some cases, jail) employers who fail to purchase coverage as required by law.
• In general, workers’ compensation covers physical injuries and occupational diseases. Mental illnesses almost never qualify for workers’ comp.

What is Workers’ Compensation Insurance?

Workers’ compensation insurance covers injuries and illnesses that arise out of the course and scope of employment. Most employers must purchase coverage from either a state fund or private insurance carriers. And employers pay 100% of the cost associated with these policies, not workers.

Individual states enacted laws in order to manage these programs near the start of the 20th century. Each employer’s policy covers medical and death benefits for injured and deceased employees who qualify for them. However, no policy requires the employer to keep a worker’s job open while he or she recovers. In addition, each state’s laws explicitly say which workers do or do not have coverage by listing automatic exemptions.

This no-fault system ensures that employees cannot sue their employer for work-related injuries or deaths. That said, employees may sue employers who violate the law in failing to acquire insurance coverage.

Do State Workers’ Compensation Laws Require Insurance Coverage for All Employers?

The lone exception is Texas. Otherwise, all other states and U.S. territories have laws requiring that most employers carry workers’ compensation insurance.

State Workers’ Comp Laws Often Require Coverage Based on How Many People Work for an Employer

Most state workers’ compensation laws insurance coverage for private employers with at least 1-5 employees. Generally, this requirement applies to both full-time and part-time employees.

States where any employer with one or more employees must have coverage:

• AK
• AZ
• CA
• CO
• CT
• DE
• HI
• ID
• IL
• IN
• IA
• KS
• KY
• LA
• ME
• MD
• MA
• MN
• MT
• NE
• NV
• NH
• NJ
• NY
• ND
• OH
• OK
• OR
• PA
• RI
• SD
• UT
• VT
• WV
• WY

And Washington, D.C. also requires it for employers with at least one employee.

States that require workers’ compensation insurance for employers with three or more employees include:

• AR
• GA
• MI
• NM
• NC
• VA
• WI

States where laws say employers with four or more employees must provide workers’ compensation insurance:

• AL
• FL
• SC

And these states require workers’ compensation coverage for employers with five or more employees:

• MS
• TN

Common Employee Exemptions from State Workers’ Compensation Laws

While the above list applies to employers, state workers compensation laws also include automatic coverage exemptions. In most states, the following types of workers are automatically excluded from workers’ comp insurance coverage:

• Agricultural employees working seasonally
• Farm workers employed by small or family owned farms
• Casual employees
• Corporate officers
• Domestic workers
• Federal employees
• Independent contractors
• Limited liability company (LLC) members
• Maritime workers
• Railroad employees
• Real estate agents that work on commission
• Real estate brokers
• Sole proprietors
• Volunteers

Workers Compensation Insurance Requirements By State: What Happens When Employers Don’t Have Coverage?

In nearly every state, it’s illegal for employers with two or more employees to not have workers’ compensation insurance. But the consequences for businesses that intentionally break the law varies widely by location.

Legal Consequences for Employers Caught Breaking State Laws Requiring Workers’ Comp Coverage

The seriousness of an infraction like this in certain states can depend on the total number of workers a business employs. For example: For owners of New York businesses with less than five employees who break the law, it’s a misdemeanor and a fine. For larger NY employers, failing to carry workers compensation insurance is a Class E felony.

Some states force employers to pay all the injured worker’s medical bills and related costs directly. Others allow injured workers to sue uninsured employers to recover the cost of unpaid medical and death benefits. Successful employee lawsuits may also pay for non-economic damages, such as pain and suffering or punitive settlements.

What to Do if an Employer Violates the Legal Workers’ Compensation Requirements in Your State

Your first step should always be to report suspected violations to the workers’ compensation commission in your state. Then, contact a reputable workers’ comp attorney in your area for a free consultation. That way, if you need to file suit in order to recover your injury costs, you know how to proceed.

Workers’ Compensation Insurance Requirements By State for Undocumented Workers

Many state laws explicitly mention that undocumented workers are also covered under any employer’s workers’ compensation policy. But others are less clear.

Which States Pay Workers Comp Benefits to Eligible Undocumented Workers?

The following states have legal provisions that grant workers’ compensation benefits to injured undocumented workers:

• AL
• AZ
• AR
• CA
• CO
• CT
• FL
• GA
• HI
• ID
• IL
• IA
• KS
• KY
• LA
• MD
• MA
• MN
• MS
• MT
• NV
• NJ
• NM
• NY
• NC
• ND
• OH
• OK
• OR
• PA
• SC
• TN
• TX
• VA
• WI

How Workers’ Compensation Insurance Coverage Works for H1B Visa Holders

If you’re injured at work and have an H1B visa, you have the right to claim workers’ compensation benefits. However, you must work in the United States for that employer for at least 90 days first.

State Workers’ Compensation Insurance Requirements Around Where to Purchase Coverage

Workers’ compensation regulations vary by state, but generally, there are two ways for employers to purchase insurance coverage:

• State funds
• From private insurance carriers

Where Must Employers Purchase Workers’ Compensation Insurance from a State Fund?

There are only four states that require employers to carry insurance purchased exclusively through a state fund:

• Ohio
• North Dakota
• Washington
• Wyoming

Which States Allow Employers to Purchase Workers’ Compensation Coverage from Private Insurance Carriers?

All other states besides the four listed above allow employers to purchase coverage from a private insurance company.

Workers’ Compensation Insurance Requirements by State for Treating Work-Related Injuries and Illnesses

Most states allow you to seek urgent medical treatment for a life-threatening injury at the nearest hospital or clinic. Connecticut is one example where you must notify your employer before you seek medical care. However, every state has its own policy about which doctor can provide you with ongoing medical treatment.

States Where You Can Choose Which Doctor You See

The following states allow you to see any doctor you like for both your initial visit and ongoing care:

State	You Select Doctor for 1st Visit, Ongoing Care, or Both	Legal Statute
Alaska	Both	Alaska Rev. Statutes §23.30.095.
California	Both if you have a doctor	California Code of Regulations, Title 8, Chapter 4.5, § 9780.1.
Delaware	Both, but you may have to submit to an exam by the employer’s doctor	Delaware Code Title 19, § 2323.
Hawaii	Both	Hawaii Rev. Statute § 386-21.
Illinois	Both, and you can choose two providers (including specialists)	Illinois W.C.A., 805 ILCS 305, § 8(a).
Kentucky	Both if your employer doesn’t have a managed care network	Kentucky Revised Statutes, § 342.020.
Louisiana	First only; your employer must approve treatment over $750	Louisiana Rev. Statutes § 23:1121(B)(1).
Maryland	Both	Maryland W.C.A., Title 14, § 9-101.
Massachusetts	Both	Massachusetts General Law, Part I, Title XXI, Ch. 152, § 30.
Minnesota	Both	2025 Minnesota Statutes § 176.135.
Mississippi	Both	Mississippi Code § 71-3-85 Rule 1.9.
Montana	First only	2023 Montana Code § 39-71-1101.
Nebraska	Both if you have a doctor	Nebraska Revised Statute § 48-120.
New Hampshire	Both unless your employer uses a managed care network	New Hampshire Rev. Statute § 281-A:23 (2024).
New Mexico	Varies by employer policy	New Mexico Statutes § 52-1-49(II).
Oregon	Both, unless you have a managed care organization	Oregon Revised Statutes § 656.245.
Rhode Island	First only	Rhode Island Statutes § 28-33-8.
South Dakota	Both	South Dakota Codified Laws § 62-4-1.
Washington	First only	Revised Code of Washington, § 51-36.
West Virginia	Both	West Virginia Code R. § 85-20-6.
Wisconsin	Both	Wisconsin Statutes § 102-42(2).
Wyoming	Both	Wyoming Statutes § 27-14-401.

States That Put Employers In Charge of Your Medical Treatment

In these states, injured employees must see a doctor their employer chooses for medical care:

State	Employer Chooses for 1st Visit, Ongoing Care, or Both	Legal Statute
Alabama	Both, unless you need emergency care	Alabama Dept. of Labor Administrative Code § 480-5-5-12.
Arizona	First only	Arizona Rev. Statutes § 23-908(F).
Arkansas	Both	A.C.A. § 11-9-508.
Colorado	First only if your employer has no preferred provider	Colorado W.C.A., § 8-43-404(5)(a)(I)(A).
Connecticut	First only	Connecticut W.C.A., § 31-294d.
Florida	Both, generally	Florida Statutes Title XXXI, § 440.13(2).
Georgia	Both, generally	O.C.G.A. § 34-9-201.
Idaho	Both	Idaho Code § 72-432 (7).
Indiana	Both, but seek urgent care if your life’s in danger	Indiana Code § 22-3-3-4.
Iowa	Both	Iowa W. C. A. § 85.27(1a).
Kansas	State law covers $800 in medical bills if you receive unauthorized care	Kansas Statutes § 44-510h.
Maine	Only for the first 10 days	Maine Revised Statutes Title 39-A, Chapter 5, § 206.
Michigan	Only for the first 28 days	Michigan Worker’s Disability Compensation Act of 1969, Act 317, § 418.315.
Missouri	Both	Missouri Rev. Statutes, Title XVIII, § 287.140.
Nevada	Both unless your life’s in danger	Nevada Revised Statutes, § 616C.087.
New Jersey	Both	New Jersey Revised Statutes § 34:15-15.
New York	Both but go to the ER for urgent care	New York Consolidated Laws § 354.10-A.
North Carolina	Both but for emergency care, go to the ER	North Carolina Revised Statutes § 97-25.
North Dakota	Only for the first 30 days	North Dakota Revised Statutes § 65-05-06.
Ohio	First only, unless you see a BMC-certified provider	Ohio Revised Code § 4123-6-06.2.
Oklahoma	Both unless your life’s in danger	Oklahoma Revised Statutes § 85A-50.
Pennsylvania	Only for the first 90 days	Pennsylvania Workers’ Compensation Act, § 306-f.1.
South Carolina	Both	South Carolina Code of Laws, Chapter 15, § 42-15-60(a).
Tennessee	Both	Tennessee Code Ann. § 50-6-204.
Texas	Both	Texas Labor Code Title 5, Workers’ Compensation.
Utah	First only	Utah Labor Code Chapter 2, Workers’ Compensation Act.
Vermont	First only	Vermont Statutes Title 21, Ch. 9, § 640.
Virginia	Both	Code of Virginia § 65.2-603.

Benefits Available to Eligible Injured Employees from Workers’ Compensation Insurance

Workers’ compensation insurance requirements by state include provisions that essentially always pay for medical care. But whether an injured worker qualifies for additional benefits is essentially up to the treating physician’s report. Keep reading to learn which benefits you might qualify for if your claim’s approved.

Medical Benefits

In nearly every state, eligible injured workers can receive unlimited medical care until reaching Maximum Medical Improvement (MMI). However, a handful of states terminate that care on the fifth anniversary of the claim-filing date.

Medical benefits from workers’ compensation insurance typically pay the healthcare provider directly for:

• Doctor’s bills
• Hospital stays
• Surgeryor other necessary medical procedures, like stitches
• Prescription medications
• X-rays, CT scans, MRIs, or other required imaging
• Physical therapy
• Travel expenses (i.e., mileage reimbursement, hotel stays)

Workers’ Comp Benefits That Cover Lost Wages

If the doctor treating you says you cannot return to work right away after your accident, you may receive wage-loss benefits. These benefits typically pay two-thirds of your average weekly wage (AWW), subject to the state’s maximum and minimum amounts. You may receive these benefits until you can go back to work in most states, with few exceptions.

Every state also has a required waiting period before you can start drawing lost-wage benefits. In some states (such as Alabama or Colorado), you become eligible for payments on your fourth missed day. Others require a full week of missed work before you’ll qualify, like Hawaii and Maine.

Important: The soonest you can start drawing wage-loss payments in any state is eight days after your accident (Kentucky). You must miss at least two days of work in every U.S. state before your employer owes any wage-loss benefits.

Temporary Total Disability (TTD) Benefits

TTD benefits usually only last until you go back to work. Insurers make these payments either weekly or biweekly, much like your paycheck. The longest you can draw TTD payments in any state is 500 weeks.

Temporary Partial Disability (TPD) Benefits

TPD payments usually equal two-thirds of the difference between your pre-injury and current work income. These benefits can provide some extra income if you can only go back to work on light duty, or part time. Once you fully recover from your injury, your TPD benefits end.

Permanent Partial Disability (PPD) Benefits

If you have a permanent loss of use of a body part, you may receive PPD benefits. Normally you can’t get PPD benefits until your TPD payments run out, and they pay the same amount.

Permanent Total Disability (PTD) Benefits

If your work-related injury or illness makes working impossible for the rest of your life, you may qualify for PTD benefits. In several states, these benefits automatically end once you start drawing Social Security benefits. But in others, you can draw these payments for life.

PTD benefits pay approximately the same amount as TTD benefits, subject to an annual cost-of-living-adjustment (COLA).

Lump-Sum Workers’ Compensation Settlements

State workers’ compensation laws frequently limit lump-sum settlement awards to people with certain disfiguring injuries. If you reach MMI and any of the following applies to you, then you may qualify for a settlement payout:

• Loss of one or more limbs (i.e., arms, legs, feet, hands, fingers, or toes)
• Significant or total vision loss in one or both eyes, or permanent blindness
• Significant hearing loss in one or both ears, or are now permanently deaf
• Burns covering more than 30% of your body
• Paralysis (i.e., permanently paraplegic or quadriplegic due to your injury)
• Another serious, permanent disfigurement not listed here
• Any combination of the above conditions

Death Benefits for Family Members of Deceased Workers

If an employee dies on the job or as a result of a work-related accident, family members can receive death benefits. Workers’ compensation laws in most states require the insurance carrier to cover:

• Funeral and burial expenses (this amount ranges from $5,000 in MS to $20,000 in RI).
• Death benefits paid to eligible family members (i.e., dependent spouse and children) equal to the worker’s TTD payments

Death benefits to family members usually end when one of the following occurs:

• Youngest child turns 18
• Dependent spouse remarries, thus triggering a two-year lump-sum settlement
• Widowed spouse either dies or begins drawing Social Security benefits

Vocational Rehabilitation Benefits

Vocational rehabilitation benefits can help workers get new jobs or change careers after a workplace injury.

Workers’ Compensation Insurance Requirements by State: Required Waiting Periods for Wage-Loss Payments

State workers’ compensation laws determine how long injured employees must miss work before qualifying for lost wages.

These states pay benefits once injured workers miss at least three work shifts:

• AK
• CA
• CO
• CT
• DE
• HI
• IL
• IA
• MD
• MN
• MO
• NH
• OK
• OR
• RI
• UT
• VT
• WA
• Washington, D.C.
• WV
• WI
• WY

These states require a four-day work absence before you qualify for workers’ comp wage-loss benefits:

• MT
• NV
• ND

In these states, the workers’ compensation waiting period is 5 days:

• AL
• ID
• MA
• MS

South Dakota is the only state with a waiting period of 6 days for lost wages.

And finally, you must miss a week of work before you can get disability benefits from workers’ compensation here:

• AZ
• AR
• FL
• GA
• IN
• KY
• ME
• NE
• NJ
• NM
• NY
• NC
• PA
• SC
• TN
• VT
• VA

How to Get a Free Workers’ Compensation Claim Consultation Through LegalASAP

If you’re dealing with a work-related injury and need benefits from your employer, we want to help. Every workers’ compensation attorney in our national network offers free, no-obligation claim evaluations and consultations. We work with hundreds of law firms across the country to provide this free service and answer your questions in private.

Not sure if you can afford an attorney to help with your workers’ comp claim issues? On average, most people pay no more than 15% of their final settlement award in legal fees.

We can connect you with a free, no-obligation workers’ comp claim consultation from a nearby attorney today. This allows you to get answers to all your questions privately before you decide how to move forward.

Don’t want to work with an attorney? No problem. But if you do need legal assistance, every workers’ compensation attorney accepts new clients on contingency. This means that if you don’t win, you owe your lawyer $0 in legal fees. And if you’re successful, you only pay one small fee deducted from your settlement amount.

For free help qualifying for workers’ comp benefits, click the button below now:

Frequently Asked Questions (FAQs) About State Workers’ Compensation Insurance Requirements

Does the Federal Government Provide Workers’ Comp Insurance For Injured Employees?

Yes. All federal employees must follow the same procedure to apply for workers’ compensation benefits. To learn more about the federal insurance claims process, read What Makes Federal Workers’ Compensation Claims Different?.

Can I Get Workers’ Comp Benefits if I’m Hurt While Working Remotely?

Yes, provided that you have a work-related injury (meaning you got hurt while doing your required job duties). However, you cannot get workers’ comp benefits for things like car accidents that happen on the way to work. And if you aren’t working when the injury happens (even during a work trip), you’re not eligible for compensation.

Does Workers’ Compensation Insurance Pay for Pain and Suffering?

No, it generally only covers your medical bills and partially replaces your job wages while you’re unable to work. If an employee dies in a work-related accident, however, his or her family may receive death benefits. Only lawsuits pay settlements for pain and suffering, and if you accept workers’ compensation, you cannot sue your employer.

What Injuries Are Usually Covered by Workers’ Comp Insurance?

No state or federal law includes a list of employee injuries that workers’ compensation insurance automatically covers. Instead, claims adjusters review each workplace injury submitted on a case-by-case basis. The most important thing to know is that your current injury must either:

• Directly result from doing your job duties while you’re clocked in, OR
• Be the result of your job duties aggravating or worsening a pre-existing injury (which you can prove with medical evidence).

How Long Do I Need to Work Somewhere Before I Can File a Workers’ Comp Claim?

In general, your workers’ compensation insurance coverage starts on your first day of employment. However, that only matters if you’re a covered employee according to your state’s workers’ compensation insurance requirements.

Can My Employer Fire Me for Seeking Workers’ Compensation Benefits?

No, this is considered illegal retaliation in every U.S. state under federal law.

Does My Employer Have to Hold My Job for Me While I’m On Medical Leave for an Injury?

No. However, some states require employers to provide workers’ compensation job replacement or re-training services.

How Long Do I Have to File a Workers’ Compensation Claim in My State?

In most states, you have about 1-2 years to file your claim. This is called the “statute of limitations.” The U.S. state with the shortest workers’ comp claim-filing deadline is Nevada (90 days). West Virginia is a close second, allowing no more than six months total to file.

These states give you no more than one year to apply for workman’s comp benefits:

• AL
• CA
• CT
• DC
• GA
• ID
• LA
• ME
• MT
• NM
• ND
• OH
• OK
• TN
• TX
• UT
• WA
• WY

In these areas, you have no more than two years to file your work-related injury or illness claim:

• AK
• AZ
• AR
• CO
• DE
• FL
• IL
• IN
• IA
• KS
• KY
• MD
• MI
• MO
• NE
• NJ
• NY
• NC
• OR
• RI
• SC
• SD
• WI

Other states give you anywhere from 3-5 years to file your workman’s comp application:

• 3 years: MN, NH, PA, VT
• 4 years: MA
• 5 years: HI

However, reporting deadlines to notify your employer about a workplace accident are very strict.

Are the Workers’ Compensation Insurance Requirements by State Listed Here Permanent?

No, state legislatures can modify existing laws at any time. In fact, they can change every year (or more often, if needed). However, LegalASAP endeavors to update each article at least annually to keep up with current state laws.

Is Workers’ Compensation Considered Taxable Income?

No, it’s not. You will not owe income taxes on workers’ compensation income.

If I’m Undocumented, Can My Employer Have Me Deported for Filing a Workers’ Comp Claim?

No. That is considered illegal retaliation under federal law.

[nuclear_engagement_quiz]

Share this story: