Workers comp requirements by state
How many employees trigger workers comp in each state, which states treat construction differently, and the official source for every rule. Built for contractors and checked against each state's own agency.
34 states and DC require it from the first employee
Hire one person and you need a policy in most of the country.
14 states set a higher line
Alabama, Arkansas, Florida, Georgia, Kansas, Michigan, Mississippi, Missouri, New Mexico, North Carolina, South Carolina, Tennessee, Virginia, Wisconsin. Florida, Missouri, New Mexico, Tennessee apply a stricter rule to construction.
Texas makes it optional
4 states run a monopolistic state fund: North Dakota, Ohio, Washington, Wyoming.
Workers comp rules in every state
Search your state. Rules change, so confirm with the linked agency before you rely on them.
| State | Required at | Construction rule | Owners and sole proprietors | Official source |
|---|---|---|---|---|
| Alabama | 5 or more employees | No separate rule stated | LLC members and corporate officers count as employees | Alabama Department of Labor, Workers' Compensation Division |
| Alaska | 1 or more employees | Same as general rule | Sole proprietors, partners, 10%+ LLC members exempt from insuring themselves | Alaska Department of Labor and Workforce Development, Workers' Compensation Division |
| Arizona | 1 or more regularly employed workers | Same as general rule | Not stated by source | Arizona Revised Statutes 23-902 |
| Arkansas | 3 or more employees (most employers) | No separate rule stated | Not stated by source | Arkansas Workers' Compensation Commission |
| California | 1 or more employees | Same as general rule | Sole proprietor may buy coverage; owner-officers may elect exclusion | California Division of Workers' Compensation (DIR) |
| Colorado | 1 or more employees | Same as general rule | Owners without employees may reject coverage by filing a form | Colorado Division of Workers' Compensation (CDLE) |
| Connecticut | All employers, few exceptions | Same as general rule | Officers, LLC members, partners may elect out; sole proprietors opt in | Connecticut Workers' Compensation Commission |
| Delaware | 1 or more employees | Same as general rule | Not stated by source | Delaware Department of Labor, Office of Workers' Compensation |
| District of Columbia | 1 or more employees | Same as general rule | Not stated by source | DC Department of Employment Services, Office of Workers' Compensation |
| Florida | 4 or more employees (non-construction) | 1 or more employees, owners who are officers or LLC members count | Non-construction sole proprietors and partners excluded unless elected; exemptions available | Florida Division of Workers' Compensation (CFO) |
| Georgia | 3 or more employees, part-time included | No separate rule stated | Up to 5 officers or LLC members may waive; still counted | Georgia State Board of Workers' Compensation |
| Hawaii | 1 or more employees | Same as general rule | Not stated by source | Hawaii Disability Compensation Division (DLIR) |
| Idaho | 1 or more employees | Same as general rule | Sole proprietors, working partners, LLC members exempt; may elect coverage | Idaho Industrial Commission |
| Illinois | 1 or more employees, even part-time | Same as general rule | Sole proprietors, partners, officers, LLC members may exempt themselves | Illinois Workers' Compensation Commission |
| Indiana | All non-exempt employers (no minimum) | Same as general rule | Independent contractors may get exemption clearance certificate | Worker's Compensation Board of Indiana |
| Iowa | All employers unless exempted by statute | Same as general rule | Proprietors, LLC members, partners may file nonelection | Iowa Code chapter 85 |
| Kansas | Over $20,000 gross annual payroll (non-agricultural) | No separate rule stated | Not stated by source | Kansas Department of Labor, Workers Compensation Division |
| Kentucky | 1 or more employees | Same as general rule | Not stated by source | Kentucky Department of Workers' Claims |
| Louisiana | 1 or more employees | Same as general rule | Owners of 10%+ may exempt themselves in writing | Louisiana Workforce Commission, Office of Workers' Compensation |
| Maine | 1 or more employees (almost all employers) | Same as general rule | Sole proprietors and LLC owners not required; 20% corporate owners may waive | Maine Bureau of Insurance |
| Maryland | 1 or more employees | Same as general rule | Not stated by source | Maryland Workers' Compensation Commission |
| Massachusetts | 1 or more employees, any hours | Same as general rule | LLC members, LLP partners, sole proprietors not required; 25% officers may exempt | Massachusetts Department of Industrial Accidents |
| Michigan | 3+ at once, or 1+ working 35 hrs/week for 13 weeks | No separate rule stated | Sole proprietor never an employee; partners, officers, manager-members are | Michigan Workers' Disability Compensation Agency |
| Minnesota | All employers (no minimum) | Same as general rule | Sole proprietors and partners excluded; can elect coverage | Minnesota Department of Labor and Industry |
| Mississippi | 5 or more employees | No separate rule stated | Not stated by source | Mississippi Workers' Compensation Commission |
| Missouri | 5 or more employees | 1 or more employees | Sole proprietors and partners excluded unless elected; LLC members count | Missouri Division of Workers' Compensation |
| Montana | All employers with any workers | Same as general rule | Independent contractors need ICEC or self-elected coverage | Montana Department of Labor and Industry, Employment Standards Division |
| Nebraska | 1 or more employees | Same as general rule | Not stated by source | Nebraska Workers' Compensation Court |
| Nevada | 1 or more employees | Construction trades always required; casual-work exemption excluded | Not stated by source | Nevada Division of Industrial Relations, Workers' Compensation Section |
| New Hampshire | 1 or more employees, full or part-time | Same as general rule | Sole proprietors and partners not required; up to 3 officers/members optional | New Hampshire Department of Labor |
| New Jersey | 1 or more employees | Same as general rule | Sole proprietor owner, partners, LLC members not counted | New Jersey Division of Workers' Compensation |
| New Mexico | 3 or more employees | All construction contractors regardless of count | LLCs and corporations required regardless of count | New Mexico Workers' Compensation Administration |
| New York | 1 or more employees (virtually all employers) | Same as general rule | Sole proprietor without employees not required; 1-2 owner corporations may be exempt | New York State Workers' Compensation Board |
| North Carolina | 3 or more employees | No separate rule stated | Sole proprietors, partners, LLC members not counted; may elect coverage | North Carolina Industrial Commission |
| North Dakota State fund only | All employers, all employees | Same as general rule | Owners, partners, officers exempt; elective coverage available | North Dakota Workforce Safety and Insurance |
| Ohio State fund only | 1 or more employees | Same as general rule | Elective for sole proprietors and partners | Ohio Bureau of Workers' Compensation |
| Oklahoma | 1 or more employees (family-only firms of 5 or fewer exempt) | Same as general rule | Sole proprietors, partners, 10%+ owners excluded unless they elect | Oklahoma Statutes Title 85A |
| Oregon | 1 or more subject workers | Same as general rule | Not stated by source | Oregon Workers' Compensation Division (DCBS) |
| Pennsylvania | 1 or more employees | Same as general rule | Religious-exemption path for sole proprietors and partners only | Pennsylvania Bureau of Workers' Compensation (L&I) |
| Rhode Island | 1 or more employees | Same as general rule | Individual owners and partners exempt; officers may waive | Rhode Island Department of Labor and Training, Workers' Compensation |
| South Carolina | 4 or more employees (and $3,000+ annual payroll) | Contractor and subcontractor coverage decided case-by-case | Not stated by source | South Carolina Workers' Compensation Commission |
| South Dakota | All employers, limited exceptions | Same as general rule | Not stated by source | South Dakota Department of Labor and Regulation |
| Tennessee | 5 or more employees (non-construction) | All construction employers, including owners | Construction owners may apply for exemption; non-construction owners not counted | Tennessee Bureau of Workers' Compensation |
| Texas | Optional for most private employers | Same as general rule | Not stated by source | Texas Department of Insurance, Division of Workers' Compensation |
| Utah | Every employer, few exceptions | Same as general rule | Not stated by source | Utah Labor Commission, Industrial Accidents Division |
| Vermont | 1 or more employees | Same as general rule | Sole proprietors and partners not required; may elect coverage | Vermont Department of Labor |
| Virginia | More than 2 regular employees | Subcontractors' employees count toward the more-than-two total | Single-member LLC covered only by election; no sole proprietor waiver | Virginia Workers' Compensation Commission |
| Washington State fund only | All workers, unless exempt | Same as general rule | Optional coverage for sole proprietors, partners, LLC members, officers | Washington Department of Labor and Industries |
| West Virginia | All employers | Same as general rule | Not stated by source | West Virginia Offices of the Insurance Commissioner |
| Wisconsin | 3+ employees, or 1+ with $500 wages in a quarter | No separate rule stated | Sole proprietors, partners, LLC members exempt; may elect coverage | Wisconsin Department of Workforce Development, Worker's Compensation Division |
| Wyoming State fund only | Required only for extra-hazardous industries | Same as general rule | Officers, LLC members, owners covered only if elected | Wyoming Department of Workforce Services, Workers' Compensation Division |
Arizona, Iowa, and Oklahoma rows cite state statutes because their agency pages did not state a number. Thresholds count employees for a typical private employer. Part-time employees usually count. Each row links to the state agency page that states the rule. This is a general guide, not legal advice.
What this means for contractors
For most tradespeople, the first hire is the moment workers comp for contractors stops being optional. Construction businesses face stricter rules in several states, and general contractors often require a certificate from every sub no matter what the state requires.
If you work across state lines, check each state you work in, not just your home state. Monopolistic states require a policy from the state fund, so a private policy will not cover work there.
See what workers comp typically costs for your trade with the contractor insurance cost calculator, or compare costs on the contractor insurance by trade page.
Use and cite this data
Journalists, trade associations, and schools are welcome to use this table. Please credit TradesInsured with a link to this page.
Workers comp by state FAQs
Which states do not require workers comp?
Texas is the only state where most private employers can choose not to carry workers comp. Employers that opt out lose important legal protections, and many general contractors and public jobs still require coverage. Wyoming requires it only for industries the state classifies as extra-hazardous, and other employers can opt in.
How many employees before workers comp is required?
In 35 of the 51 jurisdictions (50 states plus DC), coverage is required from the first employee. A handful of states set the line higher, at three, four, or five employees, and several of those apply a lower threshold to construction.
Do sole proprietors need workers comp?
Usually not for themselves, since most states exclude owners by default. Some states let owners opt in, and some GCs require a sole proprietor to carry a policy or show a state exemption certificate before starting work.
What is a monopolistic workers comp state?
A state where employers must buy workers comp from the state fund instead of private insurers. Private policies cannot cover employees in those states, so contractors who work there need a state fund policy.
Do subcontractors count as my employees?
In many states, uninsured subcontractors can be treated as your employees for workers comp purposes. Collect a certificate of insurance or a valid exemption from every sub.
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