Workers' comp laws in Missouri
Missouri requires workers' comp from the fifth employee, or from the first in construction, and the Missouri Department of Labor and Industrial Relations' Division of Workers' Compensation runs it. Relatives count toward the five, and knowingly going uninsured can bring a penalty of up to three times the yearly premium or $50,000, whichever is greater.
- The line is five employees, or one in construction. Relatives within the third degree count.
- A corporation whose only employees are its one or two owners can withdraw by filing with the Division.
- Going uninsured knowingly is a misdemeanor, and the penalty can reach the greater of three times the premium or $50,000.
Do I have to carry workers' comp in Missouri?
Yes, once you have five or more employees. Construction employers need it from the first. Part-time, casual and family-member employees all count.
Insurance that pays an employee's medical bills and lost pay 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 →. Missouri counts relatives within the third degree of kinship or marriage toward the five. (Source: Missouri Revised Statutes 287.030)
A family grocery with three relatives and two part-timers has five employees. The other seven states are on the index of state pages.
Farm labor is exempt, but a food manufacturer's processing staff are not farm labor. (Source: Missouri Revised Statutes 287.090) Check an employer's coverage on the Division's "Are You Covered?" page. Senate Bill 1718, introduced in 2026, would raise the construction line to five. The law today still says one. (Source: Missouri Senate)
Who counts as my employee in Missouri?
Everyone working for you under a contract of hire, including corporate officers. Sole proprietors and partners do not, unless they elect coverage.
In a corporation-owned restaurant, a shareholder with 40% or more of an S corporation can reject coverage in writing. (Source: Missouri Revised Statutes 287.037) A corporation whose only employees are its one or two owners can withdraw by filing a notice with the Division. The Division publishes no form number for this. It says to call 800-775-2667. (Source: Division of Workers' Compensation) The first outside hire changes that. See our restaurant workers' comp guide and the guide to what changes when you hire.
When contract work is part of your usual business and is done on your premises, Missouri makes you a backup employer of the contractor's injured workers. The statute calls this a statutory employer. A hotel with a laundry or maintenance contractor is one. (Source: Missouri Revised Statutes 287.040)
A fleet's owner-operator leased to a for-hire carrier under transportation authority is not an employee. (Source: Missouri Revised Statutes 287.020)
What goes in payroll?
Premium is figured on payroll. An officer's pay is counted between a set floor and ceiling. You may not charge any of the premium to an employee.
Officers and LLC members count toward the five employees. (Source: Division of Workers' Compensation) For policies starting after January 1, 2026, one carrier's table lists an officer minimum of $57,100 and a maximum of $166,400. (Source: ICW Group carrier compilation) It is a carrier's table, not the state's. Confirm it with your agent.
At an owner-run restaurant depot, the owners count toward the five, but the depot cannot deduct premium from the warehouse crew's wages. (Source: Missouri Revised Statutes 287.290)
After the policy year, the insurer checks your real payroll in a premium audit. See the guide to the yearly payroll check.
Who sets the rate in Missouri?
Insurers set their own rates. They must use the job classes and claims-record plan that NCCI files for the state.
NCCI publishes loss costs, the claims-cost part of a rate. Each insurer adds its own multiplier. (Source: Missouri Department of Commerce and Insurance) Loss costs rose 1.3% on January 1, 2026, after two years of cuts. (Source: Department actuarial review) Your claims record then moves your price through the 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 →.
A wholesaler is usually rated in a wholesale store class (8018), one of the largest classes with a 2026 increase. Manufacturing rose 2.9% as a group and goods and services 0.4%. (Source: Missouri Department of Commerce and Insurance, November 2025)
Missouri Employers Mutual, created by state law, has converted to a private mutual insurer. (Source: Missouri Employers Mutual) An employer who cannot find coverage can use the assigned-risk pool. Travelers runs it. (Source: Missouri Department of Commerce and Insurance)
What about workers in other states?
Missouri law can follow a worker out of state. It applies if the contract was made in Missouri, or if the job was principally based in Missouri within 13 calendar weeks of the injury.
An online seller's remote hire in another state shows the test. If the work was based in Missouri during those 13 weeks, Missouri law can reach an injury elsewhere. (Source: Missouri Revised Statutes 287.110) The other state's law may apply too. The guide to opening in a new state covers the wider question.
What happens if I don't carry it?
Knowingly going uninsured is a Class A misdemeanor. The state penalty can reach three times the yearly premium or $50,000, whichever is greater. (Source: Missouri Revised Statutes 287.128)
Here is the penalty on a round premium.
| What happens | Amount |
|---|---|
| The coverage you skipped would have cost, for the year | $20,000 |
| Three times that premium is ($20,000 × 3) | $60,000 |
| The statute's fixed alternative is | $50,000 |
| The state penalty can reach the greater of the two ($60,000 or $50,000) | $60,000 |
Illustration only, with round numbers. It is not a statement of what any agency would assess; the statute and the agency's schedule govern.
An injured worker may also sue. The employer then loses the fellow-servant, assumption-of-risk and contributory-negligence defenses. (Source: Missouri Revised Statutes 287.280) Willfully skipping the required comp notice is a separate misdemeanor, and each day counts separately. (Source: Missouri Revised Statutes 287.127)
A property owner is not the statutory employer for a contractor's improvements. Cities and counties can ask the contractor for proof of coverage before licensing. (Source: Missouri Revised Statutes 287.061) Our workers' comp coverage page explains the policy.
Frequently asked questions about workers' comp in Missouri
Yes. LLC members are covered by default, and each may reject coverage on a state-developed form given to the LLC and its insurer. A member who rejects gets no benefits under the policy.
Misrepresenting facts to get a lower premium is a Class A misdemeanor in Missouri. A repeat offense is a Class E felony.
Anyone may file a complaint with the Division's Fraud and Noncompliance Unit at 800-592-6003, or on its referral form, WC-258. The records are confidential.
Not sure which Missouri rule you fall under?
Tell us how many people work for you, and we will help you read the rule against your situation.