How can I tell if my small business is exempt from state compensation laws?

Each state has its own laws and regulations that control the workers compensation program in their state, and these laws vary from state to state.  In most cases, if you are an employer with at least one employee, you are required to carry workers compensation insurance, however, some states allow certain, smaller companies an exemption to their workers comp laws.  Unfortunately, these exemptions also vary from state to state making it difficult to determine if you qualify or not.  Small business owners that conduct business across different states may find the task particularly daunting.  For examples in one state, you might be exempt if you have only 3 employees, while, in others you may be exempt if you have 5 employees.

So, how can you determine the best course of action?  The easiest way is to simply pick up the phone to call your friendly advisor at the Workers Comp Co-Op.  We are always eager and willing to answer any question you might have – even if you aren’t a current client!

Remember, even if your state considers your business exempt, it may still be in your best interest to participate in a workers compensation program.  If your participation is NOT state mandated, you can still participate voluntarily. Contact WCCOP to learn more today!

Here is a list of the general state requirements:

State	Employers Subject to Workers Compensation Laws
AK	All employers with one or more employees
AL	All employers with five or more employees
AR	All employers with three or more employees, except for employers engaged in repair work (two or more), contractors who subcontract part of their work (one or more), and subcontractors (one or more)
AZ	All employers, including sole proprietors
CA	All employers and employees
CO	All employers with one or more employees
CT	All employers and employees
DC	All employers and employees
DE	All employers and employees
FL	All employers with four or more employees (one or more employees, for construction businesses)
GA	All employers with three or more employees
HI	All employers with one or more employees
IA	All employers and employees, including proprietors and partners who elect to be covered
ID	All employers and employees
IL	All employers and employees
IN	All employers and employees
KS	All employers and employees except employers whose payroll for the preceding year was less than $20,000
KY	All employers with one or more employees
LA	All employers with one or more employees
MA	All employers with one or more employees.
MD	All employers with one or more employees
ME	All employers and employees
MI	All employers with three or more employees
MN	All employers and employees
MO	All employers with five or more employees OR construction employers with one or more
MS	All employers with five or more employees
MT	All employers and employees
NC	All employers with three or more employees and all employment that exposes employees to radiation
ND	All employers and employees
NE	All employers with one or more employees
NH	All employers with one or more employees.
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NM	All employers with three or more employees OR one or more employees for state-licensed construction businesses
NV	All employers and employees
NY	All employers with one or more employees
OH	All employers with one or more employees;
OK	All employers and employees
OR	All employers with one or more employees
PA	All employers and employees
PR	All employers and employees
RI	Employers with one or more employees
SC	All employers with four or more employees
SD	All employers and employees
TN	All employers with five or more employees  OR one or more employees for employers that mine or produce coal.
TX
UT	All employers with one or more employees
VA	All employers with three or more employees
VT	All employers and employees
WA	All employers and employees are subject to workers’ compensation laws.Â
WI	Employers who pay wages of $500 or more in a calendar quarter
WV	All employers with one or more employees
WY	All employers and employees