Even in fairly safe industries, small business owners would be mistaken to think workers’ compensation insurance isn’t required – because it is.
Requirements vary by state, industry, and even by the size and structure of your business and payroll. Businesses that fail to carry workers’ compensation insurance can face hefty fines, lawsuits, or even criminal charges.
Below is a state-by-state comparison of workers’ compensation requirements. A link is included that directs you to the state’s government site. Click on your state to learn more about specific regulations.
State-by-State Comparison of Workers’ Comp Requirements
| State | Employee Minimum |
| Alabama | 4 |
| Alaska | 1 |
| Arizona | 1 |
| Arkansas | 3 |
| California | 1 |
| Colorado | 1 |
| Connecticut | 1 |
| Delaware | 1 |
| District of Columbia* | 1 |
| Florida | 4 |
| Georgia | 3 |
| Hawaii | 1 |
| Idaho | 1 |
| Illinois | 1 |
| Indiana | 1 |
| Iowa | 1 |
| Kansas | 1 |
| Kentucky | 1 |
| Louisiana | 1 |
| Maine | 1 |
| Maryland | 1 |
| Massachusetts | 1 |
| Michigan | 3 |
| Minnesota | 1 |
| Mississippi | 5 |
| Missouri | 5 |
| Montana | 1 |
| Nebraska | 1 |
| Nevada | 1 |
| New Hampshire | 1 |
| New Jersey | 1 |
| New Mexico | 3 |
| New York | 1 |
| North Carolina | 3 |
| North Dakota | State Fund |
| Ohio | State Fund |
| Oklahoma | 1 |
| Oregon | 1 |
| Pennsylvania | 1 |
| Rhode Island | 1 |
| South Carolina | 4 |
| South Dakota | 1 |
| Tennessee | 5 |
| Texas | Generally construction/government |
| Utah | 1 |
| Vermont | 1 |
| Virginia | 3 |
| Washington | State Fund |
| West Virginia | 1 |
| Wisconsin | 3 |
| Wyoming | State Fund |
*District of Columbia (DC) is the capital city of the United States and not a U.S. state.
Simplify Workers’ Comp
Fingercheck provides a Workers’ Comp Pay-As-You-Go feature that syncs with your payroll. This allows for automatic premium payments that are based on employee size, so you never overpay on premiums. It also improves your company’s cash flow. Furthermore, this feature helps avoid large, year-end payments and accurately calculate project costs while making audits simple.
Want to learn more or watch this feature in action?
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