What are the workers' comp laws in my state?
Workers' comp is written state by state: who must carry it, who counts as an employee, what counts as payroll, who sets the price and what the penalty is all change at the state line. This index points to one page for each of eight states, each written from that state's own statute, agency and rating bureau.
- Six of the eight states require coverage from the first employee; Missouri starts at five and Kansas at $20,000 of payroll.
- Three states (New York, Pennsylvania, Massachusetts) run their own rating bureaus; Washington sells coverage only through its state fund and prices it per hour worked.
- Every state publishes a free lookup that shows whether a business has coverage today. The links are below.
Which state's rule do I need?
The state where the work is done, not where the business is registered. Pick your state below; each page opens with the one rule that marks that state out.
- Kansas: the trigger is $20,000 of payroll, and wages paid to relatives are left out of the count. (Source: Kan. Stat. 44-505)
- Missouri: five employees, one for construction, with relatives within the third degree counting toward the five. (Source: Mo. Rev. Stat. 287.030)
- New York: one employee, officers covered by default, and a separate disability and paid-family-leave policy on top. (Source: New York State Workers' Compensation Board)
- Pennsylvania: one employee, its own three-digit class codes, and a tips rule unlike anyone else's. (Source: Pennsylvania Department of Labor & Industry)
- Massachusetts: one employee, rates fixed by the insurance commissioner after hearings, and a stop-work order that starts at $100 a day. (Source: Massachusetts Department of Industrial Accidents)
- Louisiana: one employee, owners opt out by written agreement with the insurer, and the fine is counted per employee. (Source: La. R.S. 23:1035)
- Maryland: one employee, a state-chartered insurer that must take any applicant, and a penalty of up to $25,000 per order. (Source: Md. Labor & Employment §9-407)
- Washington: no private insurers at all; coverage comes from the state fund and is priced per hour worked. (Source: Washington State Department of Labor & Industries)
The policy itself, what it pays and how it is priced, is on our workers' comp coverage page. If you are opening a location in a second state, the guide to a new location in a new state covers what happens to the rest of your insurance.
What do the eight pages have in common?
Each one answers the same six questions an owner asks, in the same order, from that state's own sources. The answers are different; the questions are not.
- Do I have to carry it? The headcount or payroll line, and the exemptions that exist in that state.
- Who counts as my employee? Contractors and subcontractors, family, owners and officers, and the forms that let an owner in or out.
- What goes in payroll? Tips, overtime and the officer floor and ceiling for the current year. In Washington the question becomes what hours you report.
- Who sets the rate? The national council or the state's own bureau, the state fund where one exists, and the class codes for the businesses we insure.
- What about workers in other states? Drivers crossing the line, remote staff, and a second location.
- What happens if I don't? The fine, the stop-work order, personal liability and who comes looking.
Insurance that pays an employee's medical bills and lost wages after a work injury is called workers' compensationWorkers' Compensation Insurance that pays medical bills and lost wages when an employee is hurt or sick because of work. Insurers call it workers' compensation. more →, or workers' comp. Four of the eight states (Kansas, Missouri, Louisiana, Maryland) use the National Council on Compensation Insurance's manual, which treats the same jobs the same way across those states. (Source: NCCI) New York, Pennsylvania and Massachusetts each run their own bureau, and Washington prices by rule inside its labor department. Oregon's 2024 comparison, which prices the same mix of jobs in every state, puts New York at 182% of the national median and Maryland at 82%, with the other six in between. (Source: Oregon Department of Consumer and Business Services)
How do I check whether a business is covered right now?
Every one of the eight states runs a free public lookup. Use it on your own business after a renewal and on any contractor before they start, because in most of these states an uninsured contractor's injured worker becomes your claim.
- Kansas: the Division of Workers Compensation's coverage verification, from the Kansas Department of Labor's workers' compensation page.
- Missouri: the Division of Workers' Compensation's "Are You Covered?" search, which also checks self-insured employers.
- New York: the Workers' Compensation Board's "Does Employer Have Coverage?" search, with records back to 2002.
- Pennsylvania: the Department of Labor & Industry's workers' compensation insurance search, fed by the state bureau.
- Massachusetts: the Department of Industrial Accidents' proof-of-coverage lookup, by business name, town and zip.
- Louisiana: the Office of Workers' Compensation Administration's coverage verification service, which shows the insurer on a given date.
- Maryland: the Workers' Compensation Commission's employer coverage verification; search by federal tax number for the surest match.
- Washington: Labor & Industries' "Verify a Contractor, Tradesperson, or Business", which shows whether the account is paid to date.
A "no result" is not proof of no coverage: the business may be insured under another name, self-insured or in a group fund. Maryland's own 2023 audit found about 1,650 employers that appeared uninsured, and in a test of 20, 19 had no active policy. (Source: WTOP on the Maryland Office of Legislative Audits report) The surest proof from a contractor is a certificate from their insurer; the guide to certificates of insurance shows what to check on it.
Frequently asked questions about workers' comp by state
Usually, if each state is listed on the policy and the insurer is licensed there. Washington is the exception: its coverage comes only from the state fund, so a multi-state policy cannot include it. Each state page explains what that state expects of an out-of-state employer.
The series covers the eight states where the businesses we write most often operate. Every state's workers' comp agency publishes its own employer guide, and the six questions on these pages are the ones to put to it.
Rates and payroll caps change every year, on a date that differs by state; thresholds and penalties change when the legislature acts. Each page carries the year of every figure and a last-reviewed date, and we revisit them when a state publishes a change.
Not sure which state's rule you fall under?
Tell us where your people work and what they do, and we will walk through the rule that applies and what your policy needs to list.