{
"name": "Workers' compensation insurance requirements by US state: employee thresholds, who counts, and industry exceptions",
"description": "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 \u2014 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 \u2014 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.",
"url": "https://referencesource.org/workers-comp-coverage-thresholds-by-state/",
"licence": "Facts and short attributed quotes taken from each state's workers' compensation board, labor department, or statute page, linking back to the source. Facts are not copyrightable (Feist, 1991); no source page's compiled table is reproduced wholesale.",
"last_verified": "2026-08-12",
"stale_after": "2027-02-08",
"sources": [
"https://adol.alabama.gov/insurance-requirement-information/",
"https://www.dir.ca.gov/dwc/employer.htm",
"https://cdle.colorado.gov/dwc/employers/insurance-coverage",
"https://www.myfloridacfo.com/division/wc/employer/default.htm",
"https://sbwc.georgia.gov/frequently-asked-questions/workers-compensation-insurance-faqs",
"https://sbwc.georgia.gov/employer-information",
"https://www.wcb.ny.gov/content/main/coverage-requirements-wc/",
"https://www.tdi.texas.gov/wc/employer/index.html"
],
"records": [
{
"state": "Alabama",
"employee_threshold": "five (5) employees",
"who_counts": "full-time or part-time and including officers of a corporation",
"industry_exceptions": "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.",
"issuing_authority": "Alabama Department of Labor, Workers' Compensation Division",
"notes": "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.",
"id": "alabama",
"url": "https://referencesource.org/workers-comp-coverage-thresholds-by-state/alabama/",
"source": "https://adol.alabama.gov/insurance-requirement-information/",
"source_quote": "If you regularly employ less than five (5) employees, full-time or part-time and including officers of a corporation in any one business, other than the business of constructing or assisting on-site in the construction of new single-family, detached residential dwellings, the Alabama Workers’",
"verified_fields": [
"employee_threshold",
"who_counts"
],
"derived_fields": [
"state"
]
},
{
"state": "California",
"employee_threshold": "one employee",
"who_counts": "all employees",
"owner_officer_status": "Roofers without employees are still required to carry workers' compensation insurance.",
"issuing_authority": "California Department of Industrial Relations, Division of Workers' Compensation",
"notes": "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.",
"id": "california",
"url": "https://referencesource.org/workers-comp-coverage-thresholds-by-state/california/",
"source": "https://www.dir.ca.gov/dwc/employer.htm",
"source_quote": "California employers are required by law to have workers' compensation insurance, even if they have only one employee. And, if your employees get hurt or sick because of work, you are required to pay for workers' compensation benefits.",
"verified_fields": [
"employee_threshold"
],
"derived_fields": [
"state"
]
},
{
"state": "Colorado",
"employee_threshold": "one or more employees",
"who_counts": "part-time, full-time, or family members",
"owner_officer_status": "If a contractor has no employees, the contractor must be covered by workers' compensation insurance unless they choose to reject coverage.",
"industry_exceptions": "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.",
"penalty_for_noncompliance": "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.",
"issuing_authority": "Colorado Department of Labor and Employment, Division of Workers' Compensation",
"id": "colorado",
"url": "https://referencesource.org/workers-comp-coverage-thresholds-by-state/colorado/",
"source": "https://cdle.colorado.gov/dwc/employers/insurance-coverage",
"source_quote": "If you have one or more employees working for you in Colorado, you must have workers' compensation insurance and maintain it at all times. This applies to all employers, regardless of whether the employees are part-time, full-time, or family members. Colorado has additional insurance requirements for businesses in the construction industry. Failure to carry insurance could result in fines.",
"verified_fields": [
"employee_threshold",
"who_counts"
],
"derived_fields": [
"state"
]
},
{
"state": "Florida",
"employee_threshold": "mandatory for most employers; four or more employees for non-construction; one or more for construction; six regular or twelve seasonal for agriculture",
"who_counts": "including business owners who are corporate officers or Limited Liability Company (LLC) members",
"industry_exceptions": "Construction Industry: one or more employees. Agricultural Industry: six regular employees or twelve seasonal workers.",
"issuing_authority": "Florida Department of Financial Services, Division of Workers' Compensation",
"id": "florida",
"url": "https://referencesource.org/workers-comp-coverage-thresholds-by-state/florida/",
"source": "https://www.myfloridacfo.com/division/wc/employer/default.htm",
"source_quote": "Workers' Compensation insurance is mandatory for most employers in Florida. Employers should have knowledge of the workers' compensation coverage requirements to ensure that they are complying with the law. Failure to have workers' compensation insurance puts employees at risk and subjects employers to penalties.",
"derived_fields": [
"state"
]
},
{
"state": "Georgia",
"employee_threshold": "three or more persons",
"who_counts": "part-time or full time, including every person, including minors, working full-time or part-time under a contract of hire, written or implied",
"owner_officer_status": "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.",
"industry_exceptions": "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.",
"penalty_for_noncompliance": "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.",
"issuing_authority": "Georgia State Board of Workers' Compensation",
"notes": "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.",
"id": "georgia",
"url": "https://referencesource.org/workers-comp-coverage-thresholds-by-state/georgia/",
"source": "https://sbwc.georgia.gov/employer-information",
"source_quote": " Home Employer Information Employer Information HOW THE WORKERS' COMPENSATION LAW APPLIES TO EMPLOYERS PURPOSE The Workers\u2019 Compensation Act defines the responsibility of the employer to provide prompt medical and disability benefits for injuries sustained on the job by workers, resulting in partial or total incapacity or death. In return, the employer is shielded from tort liability for these injuries. EMPLOYER Every employer, individual, firm, association, or corporation, regularly employing three or more persons, part-time or full time, shall provide workers\u2019 compensation insurance coverage.",
"verified_fields": [
"employee_threshold"
],
"derived_fields": [
"state"
],
"disagreements": [
{
"field": "who_counts",
"versions": [
{
"value": "part-time or full time, including every person, including minors, working full-time or part-time under a contract of hire, written or implied",
"source": "https://sbwc.georgia.gov/employer-information",
"source_quote": " Home Employer Information Employer Information HOW THE WORKERS' COMPENSATION LAW APPLIES TO EMPLOYERS PURPOSE The Workers\u2019 Compensation Act defines the responsibility of the employer to provide prompt medical and disability benefits for injuries sustained on the job by workers, resulting in partial or total incapacity or death. In return, the employer is shielded from tort liability for these injuries. EMPLOYER Every employer, individual, firm, association, or corporation, regularly employing three or more persons, part-time or full time, shall provide workers\u2019 compensation insurance coverage.",
"as_of": "2026-08-12"
},
{
"value": "including regular part-time employees and seasonal hires; if your company is incorporated or an LLC, the officers or members are included in the employee count",
"source": "https://sbwc.georgia.gov/frequently-asked-questions/workers-compensation-insurance-faqs",
"source_quote": "If you regularly employ three or more persons in your Georgia business, you are required to provide the benefits. If your company is incorporated or an LLC, the officers or members are included in the employee count.",
"as_of": "2026-08-12"
}
]
},
{
"field": "owner_officer_status",
"versions": [
{
"value": "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.",
"source": "https://sbwc.georgia.gov/employer-information",
"source_quote": " Home Employer Information Employer Information HOW THE WORKERS' COMPENSATION LAW APPLIES TO EMPLOYERS PURPOSE The Workers\u2019 Compensation Act defines the responsibility of the employer to provide prompt medical and disability benefits for injuries sustained on the job by workers, resulting in partial or total incapacity or death. In return, the employer is shielded from tort liability for these injuries. EMPLOYER Every employer, individual, firm, association, or corporation, regularly employing three or more persons, part-time or full time, shall provide workers\u2019 compensation insurance coverage.",
"as_of": "2026-08-12"
},
{
"value": "Corporate officers and LLC members are considered employees. As many as five officers or members may waive coverage on themselves by completing and signing a form WC-10. Officer exemptions do not reduce the number of employees of the corporation. Sole proprietors and partners are considered employers not employees, but they can elect to be covered by advising their insurance carrier in writing.",
"source": "https://sbwc.georgia.gov/frequently-asked-questions/workers-compensation-insurance-faqs",
"source_quote": "If you regularly employ three or more persons in your Georgia business, you are required to provide the benefits. If your company is incorporated or an LLC, the officers or members are included in the employee count.",
"as_of": "2026-08-12"
}
]
},
{
"field": "notes",
"versions": [
{
"value": "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.",
"source": "https://sbwc.georgia.gov/employer-information",
"source_quote": " Home Employer Information Employer Information HOW THE WORKERS' COMPENSATION LAW APPLIES TO EMPLOYERS PURPOSE The Workers\u2019 Compensation Act defines the responsibility of the employer to provide prompt medical and disability benefits for injuries sustained on the job by workers, resulting in partial or total incapacity or death. In return, the employer is shielded from tort liability for these injuries. EMPLOYER Every employer, individual, firm, association, or corporation, regularly employing three or more persons, part-time or full time, shall provide workers\u2019 compensation insurance coverage.",
"as_of": "2026-08-12"
},
{
"value": "Georgia does not have a State Fund.",
"source": "https://sbwc.georgia.gov/frequently-asked-questions/workers-compensation-insurance-faqs",
"source_quote": "If you regularly employ three or more persons in your Georgia business, you are required to provide the benefits. If your company is incorporated or an LLC, the officers or members are included in the employee count.",
"as_of": "2026-08-12"
}
]
}
]
},
{
"state": "New York",
"employee_threshold": "virtually all employers must provide coverage",
"issuing_authority": "New York State Workers' Compensation Board",
"id": "new-york",
"url": "https://referencesource.org/workers-comp-coverage-thresholds-by-state/new-york/",
"source": "https://www.wcb.ny.gov/content/main/coverage-requirements-wc/",
"source_quote": "Virtually all employers in New York State must provide workers’ compensation coverage for their employees (WCL §2 and 3).",
"verified_fields": [
"issuing_authority"
],
"derived_fields": [
"state"
]
},
{
"state": "Texas",
"employee_threshold": "workers' compensation insurance coverage is not required in most cases for private employers; employers can choose to carry coverage",
"penalty_for_noncompliance": "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.",
"issuing_authority": "Texas Department of Insurance, Division of Workers' Compensation",
"id": "texas",
"url": "https://referencesource.org/workers-comp-coverage-thresholds-by-state/texas/",
"source": "https://www.tdi.texas.gov/wc/employer/index.html",
"source_quote": "In Texas, private employers can choose to carry workers' compensation insurance coverage, but it is not required in most cases. A workers' compensation insurance policy provides lost wages and medical benefits to employees injured on the job.",
"verified_fields": [
"employee_threshold"
],
"derived_fields": [
"state"
]
}
]
}