Workers' comp laws in Massachusetts
Every Massachusetts employer with even one employee must carry workers' comp, and the Department of Industrial Accidents enforces it. The Commissioner of Insurance approves the rates after hearings. A business without a policy can be ordered to stop work, and lifting the order costs $100 a day, or $250 after a lost appeal.
- One employee starts the duty, and relatives count even when they are your only employees.
- The Commissioner of Insurance approves rates after hearings, and the pool for declined employers pays the same rate.
- A stop-work order costs $100 a day to lift, or $250 after a lost appeal.
Do I have to carry workers' comp in Massachusetts?
Yes, if you have even one employee, full-time or part-time. Massachusetts sets no headcount threshold. (Source: Department of Industrial Accidents)
Insurance that pays 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 →. The other seven states are on the index of state pages, and our workers' comp coverage page covers the policy.
Farm work is not among the law's listed exceptions, so a food manufacturer with an orchard side covers those hands from day one. (Source: section 1) A minor hired against child-labor law doubles the compensation owed. (Source: section 28)
Who counts as my employee in Massachusetts?
Anyone working for you under a contract of hire. Relatives count even when they are the only staff. (Source: Department of Industrial Accidents)
A family-run restaurant needs a policy even if relatives are its only staff. An officer who owns 25 percent or more of the stock can opt out. The form is Form 153, the Affidavit of Exemption for Certain Corporate Officers or Directors. The department publishes the list of exempt officers. (Source: Department of Industrial Accidents)
A wholesaler or importer with delivery contractors cannot lean on the wage law's three-part contractor test. In 2018 the state's top court held that it does not decide workers' comp status. (Source: Camargo's Case) If an uninsured contractor's worker is hurt, the hirer's insurer pays, then recovers from the contractor. (Source: section 18)
An online seller using gig couriers faces the same case-by-case question. Staff working here for a seller based elsewhere must be covered here. (Source: Department of Industrial Accidents) For a first hire, see what changes after hiring someone.
What goes in payroll in Massachusetts?
The bureau's manual sets the rules. From October 1, 2025, an executive officer's pay counts between $310 and $1,530 a week ($16,120 to $79,560 a year). An owner who elects coverage is rated on a flat $70,000. (Source: Rating and Inspection Bureau of Massachusetts)
Picture a family grocery with two partners who want themselves covered. Each asks the insurer in writing, signed. They repeat the request each year before renewal. Without it, the owner is not covered. (Source: Massachusetts owner-election regulation)
Confirm the current figures with the bureau, and ask your agent how the manual treats tips and overtime. After the year ends, the insurer checks your real payroll in a review called a premium audit. Our guide to the yearly payroll check explains it.
Who sets the rate in Massachusetts?
The Commissioner of Insurance approves or disapproves rates after hearings. The Workers' Compensation Rating and Inspection Bureau of Massachusetts (WCRIBMA) files them for more than 300 insurers. (Source: Department of Industrial Accidents)
On July 1, 2024 the commissioner ordered a 14.6 percent average cut. (Source: Risk & Insurance) In May 2025 the commissioner rejected a 7.1 percent increase. (Source: Executive Office of Labor and Workforce Development) In 2026 the state's top court sent the 2024 order back for lack of explanation. (Source: Insurance Journal)
Your claims record moves your price through an experience modification factorExperience Modification Factor (E-Mod) A number, with 1.0 as average, that raises or lowers your workers' compensation price based on your claims compared with similar businesses. Insurers call it the experience modification factor. more →. The bureau's plan applies from $11,000 of premium. (Source: WCRIBMA experience rating plan)
A hotel or motel that two insurers decline can use the assigned-risk pool. It is the plan for declined employers. It charges the open-market rate. A loss-management firm can earn up to a 15 percent credit. (Source: Division of Insurance)
What about workers in other states?
An injury outside Massachusetts can still be a Massachusetts claim. Anyone driving with the employer's general authorization is treated as its employee, in or out of state. (Source: chapter 152, section 26)
If the policy names Massachusetts in Item 3.A, the department accepts it. If Massachusetts is covered only through Item 3.C, the insurer must file Form 154, the out-of-state employer verification, with the Office of Investigations. (Source: Department of Industrial Accidents) See also our guide to a new location in a new state.
Take a commercial fleet. For a driver hurt out of state, Mendes's Case (2020) asks for "sufficient significant contacts" with Massachusetts, such as residence and where the driver was hired. (Source: Massachusetts Trial Court Law Libraries)
What happens if I don't carry it in Massachusetts?
The Office of Investigations can order your business to stop work. Lifting it takes proof of insurance and a civil penalty. That is $100 a day, or $250 a day after a lost appeal. (Source: chapter 152, section 25C)
A timely appeal pauses the order. Here is one order that runs 10 days.
| What happens | Amount |
|---|---|
| The order is served and you show proof of insurance after | 10 days |
| You did not appeal, so lifting it costs $100 a day (10 × $100) | $1,000 |
| Had you appealed and lost, it would be $250 a day instead (10 × $250) | $2,500 |
Illustration only, with round numbers. It is not a statement of what any agency would assess; the statute and the agency's schedule govern.
At a restaurant depot, the order stops all business at the site, and idled workers must be paid for the first ten days. A commercial property owner meets the rule at the permit desk, because agencies must withhold licenses and building permits without proof of coverage. A resident owner of a home with three or fewer apartments is not an employer. (Source: section 1)
A court can also fine up to $1,500 or order up to a year in jail. The business can be barred from state contracts for three years.
You can check any business with the department's Verify Workers' Compensation Insurance Coverage lookup, though a blank result does not prove there is no coverage. (Source: Department of Industrial Accidents)
Frequently asked questions about workers' comp in Massachusetts
Employers can join a self-insurance group or hold a self-insurer license. For the license, the department's page lists at least 300 employees and $750,000 of standard premium.
Ask the rating bureau in writing to review it. After that, you have 30 days to appeal to the Division of Insurance.
The statute deems them employees of the host employer. Tell your agent before the student starts.
Not sure which Massachusetts rule you fall under?
Tell us who owns the business and where your people work, and we will help you read the rule against your situation.