Do Business, not HR
FEDERAL WORKERS' COMPENSATION
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The U.S. Department of Labor's Office of Workers' Compensation Programs (OWCP) administers four major disability compensation programs which provides to federal workers (or their dependents) and other specific groups who are injured at work or acquire an occupational disease – providing the injured:
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Wage replacement benefits
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Medical treatment
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Vocational rehabilitation
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Other benefits
Other specific groups are covered by:
These entities serve the specific employee groups who are covered under the relevant statutes and regulations by mitigating the financial burden resulting from workplace injury. Individuals injured on the job while employed by private companies or state and local government agencies should contact their state workers' compensation board.
The Department of Labor has several programs designed to prevent work-related injuries and illnesses. You may obtain information about these programs by visiting our Workplace Safety and Health page.
STATE WORKERS' COMPENSATION INFO
Each state sets workers’ compensation requirements
Workers’ compensation is regulated on the state level, and each state has its own requirements and penalties. Nearly every state requires employers to carry workers' compensation insurance.
Typically, the number of employees determines when a business needs workers’ compensation insurance. Most often, it’s required as soon as you hire your first employee.
Workers’ compensation laws in your state
Some states have severe penalties for not carrying workers’ comp insurance
The penalty for not purchasing workers’ comp insurance when it is required varies by state. It can result in a fine, jail time, or both.
States with severe penalties include:
California: In California, it is a criminal offense to not provide workers’ compensation for your employees. It’s punishable by up to a year in jail and a fine of no less than $10,000 – or both. Illegally uninsured employers could face a penalty of up to $100,000.
Illinois: An employer who did not provide workers’ comp when it was required must pay $500 for each day of noncompliance, with a minimum fine of $10,000.
New York: Illegally uninsured employers could be charged with a misdemeanor or a felony. Fines range from $1,000 to $50,000, in addition to a penalty of $2,000 for every 10 days without coverage.
Pennsylvania: In Pennsylvania, intentional noncompliance is a felony of the third degree. It can result in a fine of $15,000 and up to seven years in jail.
In some states, you must purchase workers’ compensation insurance from a state fund
Some states have workers' compensation state funds. Businesses in the following states must purchase workers’ compensation from the state fund, which in this case is called a monopolistic state fund:
Workers’ compensation purchased from a monopolistic state fund does not include employer’s liability insurance. Typically included in workers’ comp, this insurance protects against lawsuits claiming a worker was injured by an employer’s negligence. Businesses can purchase stop gap coverage to close this gap in coverage.