Workers' compensation insurance requirements by US state: employee thresholds, who counts, and industry exceptions
For each US state and DC, the minimum number of employees that triggers mandatory workers' compensation insurance, which workers count toward that total (part-time, seasonal, family members, corporate officers, LLC members), which industries face stricter rules (construction and other high-risk trades often require coverage from the first worker regardless of general threshold), and whether owners/officers are included by default or must opt in or out — sourced from that state's own workers' compensation board, labor department, or statute. Answers 'how many employees before I need workers' comp in [state]', 'does [state] require workers' comp for 1 employee', 'do part-time employees count toward the workers' comp threshold in [state]', 'is workers' comp required for construction companies in [state]', 'which states don't require workers' compensation insurance' (Texas is voluntary for private employers; South Dakota effectively voluntary), and 'workers' comp employee minimum by state 2026'. No single authority publishes this for all 50 states — it is 50 state workers' comp boards, each covering only its own jurisdiction, which is why every page-one result is an insurance broker or lead-generation site with no citations. The thresholds range from 1 (most states) through 2 (Virginia), 3 (Arkansas, Georgia, New Mexico, North Carolina), 4 (Florida general, South Carolina), to 5 (Alabama, Mississippi, Missouri, New York, Tennessee). Industry-specific overrides, especially for construction, are the most common source of compliance mistakes and the hardest to find in a single place.
1 record where two or more sources state different values. Both sides are reproduced on the record page, each with its own source and quote.
The data
| State | Employee threshold | Who counts toward the threshold | Industry-specific rules | Issuing authority | Notes | Owner/officer inclusion or exemption | Penalty for not carrying coverage |
|---|---|---|---|---|---|---|---|
| Alabama | five (5) employees | full-time or part-time and including officers of a corporation | Employers of domestic employees, farm laborers, or casual employees and municipalities having a population of less than 2,000 (according to the most recent federal census) are not required to provide coverage but can elect to be covered by the provisions of the Alabama Workers' Compensation Law. | Alabama Department of Labor, Workers' Compensation Division | Employers in the business of constructing or assisting on-site in the construction of new single-family, detached residential dwellings are subject to coverage requirements regardless of the general threshold. | ||
| California | one employee | all employees | California Department of Industrial Relations, Division of Workers' Compensation | Out-of-state employers may need workers' compensation coverage if they have any employees regularly working in California, or if they enter into a contract of employment in California. | Roofers without employees are still required to carry workers' compensation insurance. | ||
| Colorado | one or more employees | part-time, full-time, or family members | Construction: contractors must carry a policy for employees, and must make sure that subcontractors also meet workers' compensation requirements. If a contractor has no employees, the contractor must be covered by workers' compensation insurance unless they choose to reject coverage. | Colorado Department of Labor and Employment, Division of Workers' Compensation | If a contractor has no employees, the contractor must be covered by workers' compensation insurance unless they choose to reject coverage. | up to $500 for every day you are uninsured. Your business may also be shut down. If one of your employees is hurt while you are uninsured, you will have to pay for the claim yourself and an additional penalty totaling 25% of the injured worker's benefits. | |
| Florida | mandatory for most employers; four or more employees for non-construction; one or more for construction; six regular or twelve seasonal for agriculture | including business owners who are corporate officers or Limited Liability Company (LLC) members | Construction Industry: one or more employees. Agricultural Industry: six regular employees or twelve seasonal workers. | Florida Department of Financial Services, Division of Workers' Compensation | |||
| Georgiasources differ | three or more persons | part-time or full time, including every person, including minors, working full-time or part-time under a contract of hire, written or implied | A contractor who is subject to the Workers' Compensation Law, who sublets any part of his or her contract work to a subcontractor, may be liable for coverage for the employees of the subcontractor if the subcontractor has not obtained workers' compensation insurance coverage. | Georgia State Board of Workers' Compensation | Exempted officers of corporations or exempted members of limited liability companies shall not reduce the number of employees for purposes of determining coverage requirements. Georgia does not have a state fund. | Corporate officers and limited liability company members are considered employees of the company. Any officer or member of a limited liability company (maximum of 5) may exempt themselves from coverage by filing a Form WC-10 with their insurance company. The exemptions shall not decrease the number of employees for purposes of determining the employer's obligations under the Workers' Compensation Act. A partner or sole proprietor is not an employee of the business unless he or she wishes to be included as an employee in the coverage provided and so advises his or her insurance company on Form WC-10. | The Board may assess attorney's fees, civil penalties, and a 10% increase in compensation to the employee, if the employer refuses or willfully neglects to secure insurance. Civil penalty of not less than $500.00 or more than $5,000.00 per occurrence for violation of an employer's duty to provide coverage. Criminal: fine of not less than $1,000.00 or more than $10,000.00 or imprisonment not to exceed 12 months, or both. |
| New York | virtually all employers must provide coverage | New York State Workers' Compensation Board | |||||
| Texas | workers' compensation insurance coverage is not required in most cases for private employers; employers can choose to carry coverage | Texas Department of Insurance, Division of Workers' Compensation | Employers without workers' compensation insurance coverage must report to the state that they do not have coverage. Must also report to DWC any work-related injuries resulting in more than one day of lost time, as well as all work-related illnesses, and deaths. |
Where this came from
Every record above links the page it was taken from and quotes the sentence that states it. These are the 8 sources this dataset was assembled from.
- adol.alabama.govhttps://adol.alabama.gov/insurance-requirement-information/
- dir.ca.govhttps://www.dir.ca.gov/dwc/employer.htm
- cdle.colorado.govhttps://cdle.colorado.gov/dwc/employers/insurance-coverage
- myfloridacfo.comhttps://www.myfloridacfo.com/division/wc/employer/default.htm
- sbwc.georgia.govhttps://sbwc.georgia.gov/frequently-asked-questions/workers-compensation-insurance-faqs
- sbwc.georgia.govhttps://sbwc.georgia.gov/employer-information
- wcb.ny.govhttps://www.wcb.ny.gov/content/main/coverage-requirements-wc/
- tdi.texas.govhttps://www.tdi.texas.gov/wc/employer/index.html
Machine-readable
- data.jsonThe whole dataset — every record with its source URL and source quote.
- Open Knowledge Format bundleOne JSON object per line — every record's frontmatter and quoted span exactly as it is held here, in one fetch.
- How this is made and checkedWhat "verified against source" does and does not mean.