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Minimum Number of Employees for Workers’ Comp in Every U.S. State

Whether or not your business is required to carry workers’ compensation insurance depends on if you’ve met or exceeded the minimum number of employees set by state law. 

A clear understanding of your state’s thresholds will help you determine if you’re required to purchase a policy now or when this could be mandatory in the future. 

Before we break down the finer details of all 50 states, here are a few key points to keep in mind:

  • Full-time, part-time, and seasonal employees are included in your total count.
  • Some types of workers are excluded such as independent contractors, volunteers, business owners, federal employees, longshoremen and railroad employees. 
  • Even if a business owner or corporate officer is excluded, it’s not necessarily a loophole to avoid purchasing coverage. Take for example a state that requires businesses with five or more employees to carry coverage. If a company has four employees and one corporate officer, it must still obtain a policy for these employees.  

How to Use This Table

The table below contains four columns with the following information:

  • State: Find the U.S. state where the business operates.
  • Employee threshold: The minimum number of employees that trigger the requirement to carry insurance.
  • Employee minimum includes: What types of workers are included in the employee count. For example, “always” includes or “sometimes” includes. 
  • Exceptions: Who can opt in to the company's workers' compensation coverage and who can opt out.

 

Workers' Compensation Requirements by State

 

State Work Comp Insurance Requirement (Employees) Employee Minimum Includes Exceptions
Alabama 5 or more Includes officers of a corporation or members of an LLC
  • Sole proprietor or partner: Excluded but have the option to include themselves.
  • Corporate officer or member of an LLC: Alabama includes you, but you have the option to exclude yourself.
Alaska 1 or more Includes all employees.
  • Sole proprietor or partner: Excluded but have the option to include themselves.
  • For-profit corporate officers: Included but can elect to be exempted.
  • Member of an LLC: Excludes you from coverage, but you have the option of being included.
Arizona 1 or more Workers’ comp is mandatory regardless of the number of workers, whether they are part-time, full-time, minors, illegal immigration status or family members.
  • Domestic workers do not need to be covered.
  • Sole proprietors do not need coverage.
  • Independent contractors do not need to be covered.
  • Employees may voluntarily reject workers’ compensation insurance by providing a written notice to the employer. The employer must file this with the workers’ compensation insurance carrier.
Arkansas 3 or more Includes all employees.
  • Sole proprietor or partner: Excluded but have the option to include themselves.
  • Corporate officers or member of an LLC: Included but can elect to be exempted.
California 1 or more May include gig economy workers.
  • Roofers must carry coverage in California even if they don’t have any employees.
  • Sole proprietor: Excluded but have the option to include themselves.
  • Directors and officers must be included in coverage, unless the corporation is fully owned by the directors and officers.
Colorado 1 or more Includes all employees, even those who are part-time.
  • Sole proprietor or partner: Excluded but have the option to include themselves.
  • Some domestic and maintenance workers that perform work on a limited, part-time basis for a homeowner may not need to be covered by law.
  • Corporate Officers and Members of an LLC: Colorado includes you in coverage, but if own at least 10% of the company you can opt out of coverage.
Connecticut 1 or more Includes all employees.
  • Sole proprietors: Excluded from coverage but have the option to get coverage for themselves.
  • Partners: Included in coverage but have the option to exclude themselves.
  • Corporate officers and members of an LLC: Included in coverage but have the option to exclude themselves.
Delaware 1 or more Includes all employees.
  • You are a sole proprietor or partner: In Delaware, you are excluded from coverage but have the option to include yourself.
  • You are an immediate family member of a sole proprietor or partner: You are included in coverage in Delaware but have the option to exclude yourself.
  • You are a corporate officer or member of an LLC: You are included in coverage but up to eight corporate officers who are stockholders of the corporation or as many as four members of a limited liability company may exclude themselves.
Florida 4 or more Four or more part- or full-time employees, including corporate officers and Limited Liability Company (LLC) members.
  • Corporate officers and LLC members may choose to exempt themselves from coverage.
  • Sole proprietors and partners are not required to have coverage, but can choose to include themselves on a policy.
  • In the construction industry and have at least one part- or full-time employee.
  • In the agricultural industry and have at least six employees.
Georgia 3 or more Three or more employees including full-time, part-time, temporary and seasonal W-2 workers.
  • Up to five officers at a company may waive coverage on themselves.
Hawaii 1 or more Includes all employees.
  • You are a sole proprietor or partner: In Hawaii, you are excluded from coverage but have the option to include yourself.
  • You are a corporate officer: If you own at least 50% of the corporation, you are excluded from coverage in Hawaii but have the option to be covered.
  • You are member of an LLC: Hawaii includes you in coverage. Pending legislation, if passed, would allow LLC Members to be excluded under certain circumstances.
Idaho 1 or more Includes full-time, part-time, seasonal, and occasional employees.
  • Sole proprietors, partners, corporate officers (that own at least 10%) and members of an LLC are all automatically excluded from coverage under Idaho law but can opt for inclusion.
Illinois 1 or more Full-time, part-time and most family members working for the business.
  • Sole proprietors, business partners, corporate officers, members of a limited liability company: Not typically required to be covered, but they may choose to include themselves to be eligible for benefits.
  • Hazardous industries: Anyone working in construction, trucking or other “extra hazardous” industries must have coverage, even if they are a sole proprietor, corporate officer or member of an LLC.
Indiana 1 or more Full and part-time employees.
  • Licensed real estate agents are not considered an employee and do not need to be covered by a policy.
  • Independent contractors in building or construction are required to become certified with the Indiana Worker’s Compensation Board every year before being granted a certificate of exemption.
Iowa 1 or more Includes all employees.
  • You are a contractor: You are not considered an employee if you meet certain qualifying requirements.
  • You are a sole proprietor, partner or member of an LLC: If you are engaged in the business on a full-time basis, you are excluded from coverage but have the option to include yourself.
  • You are a corporate officer: Iowa includes you in coverage, but up to four officers may exclude themselves by completing a Rejection of Workers’ Compensation or Employer’s Liability Coverage form.
Kansas 1 or more Full and part-time employees.
  • You are an independent contractor with no employees: You may choose to exempt yourself from carrying workers’ compensation insurance.
  • You are a sole proprietor or partner: In Kansas, you are excluded from coverage but have the option to include yourself.
  • You are a corporate officer: You are considered an employee in Kansas and are included in coverage. If you own 10% or more of the business you may elect to exclude yourself.
  • You are a member of an LLC: Kansas treats you like a partner and excludes you from coverage, but you have the option to include yourself.
Kentucky 1 or more Includes all employees.
  • Sole proprietors: Excluded from coverage but have the option to include themselves.
  • Independent contractors: Excluded from coverage.
  • Corporate officers: Included in coverage but may exempt themselves from coverage by filing an Employee's Written Notice of Rejection.
  • Partners or members of an LLC: Exempt from coverage under certain circumstances.
  • Out-of-state employers: If employees are performing any work in the state, employers are required to provide Kentucky coverage.
Louisiana 1 or more Businesses with one or more employees working in Louisiana must carry a policy.
  • Subcontractors: Unless considered an employee, subcontractors won’t be covered by the company’s insurance policy and may be asked to provide proof of work comp.
  • Real estate agents: If licensed to conduct business in Louisiana, real estate agents are exempt from carrying workers’ compensation insurance.
  • Sole proprietors, corporate officers and partners: In Louisiana, they are counted as employees and included in coverage, but have the option to exclude themselves.
  • LLC members: Louisiana includes members in coverage, but they have the option to exclude themselves if they own 10% or more of the company.
  • Domestic employees, uncompensated officers and directors of certain non-profit organizations, and public officials might be specifically exempted.
Maine 1 or more Includes all employees.
  • You are a sole proprietor or partner: In Maine, you are excluded from coverage but have the option to include yourself.
  • You are a corporate officer: You are included in coverage, you but have the option to exclude yourself if you own 20% or more of the outstanding voting stock.
  • You are a member of an LLC: Maine excludes you from coverage, but you have the option to include yourself.
Maryland 1 or more Includes all employees.
  • Maryland law allows some officers and LLC members to exclude themselves from workers’ compensation coverage. Sole proprietors and partners are automatically excluded from coverage and must elect to include themselves.
Massachusetts 1 or more Includes all employees (including family members).
  • Domestic employees who must work less than 16 hours a week.
  • Members of a limited liability company (LLC), partners of a limited liability partnership (LLP), or sole proprietors of an unincorporated business.
  • Corporate officers who own at least 25% interest in the corporation can request an exemption from workers’ compensation coverage.
  • Real estate agents working on a commission basis.
  • Taxi drivers who lease their cabs on a fee basis and who are not treated as an employee under federal tax law.
Michigan 1 or more Includes all employees.
  • Agricultural employers: These employers must purchase a workers’ compensation policy if they have three or more full-time employees.
  • Sole proprietorship: If employees are the spouse, child or parent of the sole proprietor, they may be excluded.
  • Stock corporation: Corporate officers that own 10% or more stock can be excluded.
  • Partnership: Partners can be excluded.
  • Limited Liability Company: Members that are also managers and own 10% or more of the business can be excluded.
Minnesota 1 or more Includes all employees.
  • You are a sole proprietor: In Minnesota, you and immediate family members can choose not to carry workers’ compensation if there aren’t any other employees.
  • You are a partner: In Minnesota, you are excluded from coverage if all employees are partners or immediate family, but you have the option to include yourself.
  • You are a corporate officer or member of an LLC: You are exempt from coverage if all employees are corporate officers, members or immediate family, but you have the option to include yourself.
Mississippi 5 or more Includes all employees.
  • You are a sole proprietor, partner or member of an LLC: In Mississippi, you are excluded from coverage but have the option to include yourself.
  • You are a corporate officer: Mississippi includes you in coverage, but you have the option to exclude yourself. You are an employee that owns 15% or more stock: You may exempt yourself from coverage.
Missouri 5 or more Includes all employees.
  • Railroad, postal, and maritime workers are covered under federal laws.
  • Farm labor, domestic servants in a private home, occasional laborers, and qualified real estate agents are exempt.
Montana 1 or more All employees working in the state, including full and part-time.
  • You are a sole proprietor, partner or member of an LLC: In Montana, you are excluded from coverage but have the option to include yourself.
  • You are a corporate officer: Montana includes you in coverage, but you have the option to exclude yourself.
Nebraska 1 or more Includes all employees.
  • You are a sole proprietor, partner or member of an LLC: In Nebraska, you are excluded from coverage but have the option to include yourself if actively involved in the business on a full-time basis.
  • You are a corporate officer: You are included but have the option to exempt yourself if you own 25% or more stock.
Nevada 1 or more Includes all employees.
  • Sole proprietors and partners: Excluded from coverage, but may include themselves.
  • Contractors: Sole proprietors licensed as a contractor or subcontractor must find coverage.
  • Corporate officers and members of an LLC: Included in coverage, but may exclude themselves.
New Hampshire 1 or more Includes all employees (including family members).
  • You are a sole proprietor or partner: In New Hampshire, you are excluded from coverage but have the option to include yourself.
  • You are a corporate officer or member of an LLC: New Hampshire includes you in coverage, but you have the option to exclude up to three executive officers. Officers who actively work at a construction site cannot be exempt.
New Jersey 1 or more Includes all employees.
  • Corporate officers must be covered, but partners or members of an LLC and the principal owner of a sole proprietorship do not need coverage.
New Mexico 3 or more Includes all employees.
  • You are a sole proprietor or partner: In New Mexico, you are excluded from coverage but have the option to include yourself.
  • You are a corporate officer or member of an LLC: New Mexico includes you in coverage, but you have the option to exclude yourself if you own 10% or more of the company.
  • You are a contractor: You must be licensed in New Mexico by the Construction Industries Division. If all your employees are required by law to be licensed by the Construction Industries Division, you must provide workers’ compensation.
  • You are a real estate salesperson: You are exempt from coverage.
New York 5 or more Includes all employees.
  • Sole proprietors, partners and one- and two-person corporations do not have to carry coverage, but may include themselves on a policy.
North Carolina 3 or more Includes all employees.
  • Owners: Officers may need to be included, if employed by an incorporated business. Officers may waive their own coverage, but they still count toward the three or more employees rule.
  • Trucking companies: Truck drivers must be covered by a workers’ compensation policy, even if the owner-operator is considered an independent contractor.
  • Agricultural Employers: They do not have to carry workers’ compensation insurance unless they employ 10 or more full-time, non-seasonal workers.
  • Domestic servants: Any domestic servants directly employed by a household do not need to be covered.
North Dakota 1 or more Includes all employees.
  • You are a sole proprietor, partner, corporate officer or member of an LLC: North Dakota excludes you from coverage, but you have the option to include yourself.
  • Independent contractor: You are exempt from coverage after completing an Independent Contractor Verification Application.
  • General contractor: You are responsible for securing coverage and paying premiums for subcontractors until they have obtained their own coverage.
Ohio 1 or more All employees working in the state.
  • You are a sole proprietor or partner: In Ohio, you are excluded from coverage but have the option to include yourself.
  • You are a corporate officer: You are included in coverage but have the option to exclude yourself.
  • You are a member of an LLC: Your workers’ compensation requirements depend on whether the LLC has chosen to be treated as a corporation, sole proprietor or partnership for income tax purposes.
Oklahoma 1 or more Includes all employees.
  • Sole proprietors and partners: You are a sole proprietor or partner: In Oklahoma, you are excluded from coverage but have the option to include yourself.
  • Corporate officers and members: Oklahoma excludes officers and members owning 10% or more stock, but you may elect to include yourself.
  • “Family five or fewer”: If you have up to five employees and all are immediate family, you are exempt from providing workers’ compensation.
Oregon 1 or more Includes all employees.
  • 30+ exemptions outlined in Oregon law.
Pennsylvania 1 or more Includes all employees.
  • A business may be exempt from providing coverage if all workers can be described as: Executive officers, domestic workers, federal workers, sole proprietors, or general partners.
Rhode Island 1 or more Includes all employees.
  • You are a sole proprietor or partner: In Rhode Island, you are excluded from coverage.
  • You are a corporate officer or member of an LLC: Rhode Island includes you in coverage, but you have the option to exclude yourself.
  • You are a licensed real estate brokers, salespersons or real estate appraisers: If you are paid on a commission-only basis, you are exempt from workers’ compensation coverage.
South Carolina 4 or more Includes all employees.
  • Subcontractors may be treated as employees and need to be covered under the general contractor’s policy, if they do not carry their own coverage.
South Dakota 1 or more Includes all employees.
  • There is no law in South Dakota requiring any employer to carry workers’ compensation insurance.
Tennessee 5 or more Includes all employees.
  • Owners must also have coverage on themselves, unless they request an exemption.
Texas Not required n/a
  • Companies that enter into a building or construction contract with a government entity must carry coverage.
  • Public or educational employers must carry coverage.
Utah 1 or more Includes full and part-time employees.
  • Some workers may not be counted: Agricultural workers, casual or domestic workers, and real estate and insurance brokers.
  • Businesses with no employees may not be required to carry workers’ compensation insurance.
Vermont 1 or more Includes all employees.
  • You are a sole proprietor or partner: In Vermont, you are excluded from coverage but have the option to include yourself.
  • You are a corporate officer or member of an LLC: Vermont includes you in coverage, but you have the option to exclude yourself.
Virginia 2 or more Includes full-time, part-time, seasonal or temporary workers, minors, trainees, immigrants and family members.
  • Executive officers may reject coverage, but they must give proper notice to the employer and the Virginia Workers’ Compensation Commission.
Washington 1 or more Includes all employees.
  • You are a sole proprietor or partner: In Washington, you are excluded from the policy but have the option to purchase Elective Coverage for yourself.
  • You are a corporate officer or member of an LLC: You have the option to purchase Elective Coverage for yourself in Washington, but you may exclude yourself if you meet specific criteria.
West Virginia 1 or more Includes all employees.
  • You are a sole proprietor or partner: In West Virginia, you are included in coverage but have the option to exclude yourself.
  • You are a corporate officer: You are included in coverage with the option to exclude yourself; however, in some cases an employer may elect not to provide coverage for corporate officers.
  • You are a member of an LLC: West Virginia includes you in coverage, but you have the option to exclude yourself. LLCs may exclude up to four managers, officers or members.
Wisconsin 1 or more Includes full-time, part-time, family members, and minors.
  • Sole Proprietors, Partners and Members of an LLC: These individuals are not considered an employee and excluded from coverage, but they have the option to include themselves.
  • Corporate officers: Corporate officers are considered employees and included in coverage. They may be excluded under certain circumstances.
Wyoming 1 or more All employees working in the state.
  • You are a sole proprietor or partner: In Wyoming, you are excluded from coverage.
  • You are a corporate officer or member of an LLC: Wyoming excludes you from coverage, but you have the option to include yourself.

 

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