Companies in nearly every state are required to carry workers' compensation insurance. This is to ensure that employees who are injured on the job receive proper medical attention and are compensated for lost wages if they are unable to work due to injury. However, each state varies in the types of workers' compensation policies they allow and what those policies are required to cover. At one time, workers' compensation was a state-run benefit, but, in most states, it is now offered by private insurance carriers.
Most states require employers to carry workers' compensation insurance; however, these requirements vary. In Wyoming, only companies with extremely hazardous working conditions are required to carry it. In 39 of 53 jurisdictions, employers are required to provide coverage to workers regardless of staff size. In other states, some companies are exempted from having to provide workers' compensation if the number of employees falls below a certain threshold. For example, employers with less than three employees are exempted in Arkansas, Georgia, Michigan, New Mexico, North Carolina, Virginia, and Wisconsin. To find out whether you are covered, contact your state's workers' compensation agency.
States vary in what they require employers to cover under workers' compensation insurance. For example, states often differ when it comes to the amount of coverage employers must purchase for employees, whether part-time workers are covered, how much a company must pay in wages if an employee's injury prevents them from working, and how long the company is liable and must cover an employee who is injured.
Workers' compensation laws generally cover injuries regardless of fault, and a worker who is injured still qualifies for coverage regardless of unsafe working conditions or employee carelessness. However, employees typically do not qualify for coverage if they injure themselves intentionally, suffer injury under the influence of drugs or alcohol, or if they are not at work at the time of the injury. To find out more about workers' compensation, visit the U.S. Department of Labor.
