Is Workers’ Comp Required?
Usually, states require most employers to carry it, but thresholds, exemptions, and alternatives vary by state.
There is no single federal rule that answers this for every business. The NAIC describes workers’ compensation as mandatory for most employers in every state except Texas, where most private employers can choose whether to participate. That summary does not resolve special categories, state employee-count thresholds, or contracts that require evidence of coverage.
For example, California requires employers to provide coverage, while Texas requires non-subscribers to follow notice and reporting rules. Use the Department of Labor’s state-official directory to find the correct agency, then confirm your workforce and legal structure against that state’s current rules. State agencies can also explain where employers may obtain coverage, such as a private insurer, a state fund, or approved self-insurance. Ask whether an out-of-state employee or temporary worker changes the filing.
Related Coverage
Sources
- Workers’ Compensation Insurance. National Association of Insurance Commissioners; Opening definition; mandatory coverage except Texas opt-in; exclusive remedy; monopolistic state funds; self-insurance note. Accessed 2026-09-25.
- DWC employer information. California Department of Industrial Relations, Division of Workers’ Compensation; Opening trade-off and California requirement; basic benefits including medical care, temporary and permanent disability, supplemental job displacement, return-to-work supplement and death benefits; out-of-state employer note. Accessed 2026-09-25.
- Employer resources. Texas Department of Insurance, Division of Workers’ Compensation; In Texas, private employers can choose to carry workers’ compensation insurance coverage, but it is not required in most cases; lost wages and medical benefits; except when gross negligence results in a fatality, coverage limits liability. Accessed 2026-09-25.
- State Workers’ Compensation Officials. U.S. Department of Labor; State and territory workers’ compensation contacts. Accessed 2026-09-25.
