What Are Workers’ Comp Requirements by State?
Most states require coverage for most employers, but thresholds, exemptions, owner rules, and available insurance options vary.
Workers’ compensation is regulated state by state. NAIC says coverage is mandatory for most employers in every state except Texas, and also notes that some states use monopolistic funds while many permit qualified self-insurance. California requires employer coverage; most private Texas employers can choose whether to participate. These examples should not be used to decide another state’s rule.
Make a list of employee work locations, including remote locations, then use the Department of Labor’s directory to contact each state or territory agency. Ask about headcount thresholds, owners, contractors, volunteers, and coverage options. Check the quote’s state schedule and other-states coverage with the insurer before employees begin work. In states using a monopolistic fund, an employer may need to buy statutory benefits through that state’s system and may need a separate solution for employers’ liability. Verify the current arrangement with the state agency.
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.
