State coverage requirement lookup
Workers compensation coverage rules are state-specific and surprisingly variable. The threshold for mandatory coverage ranges from one employee in most states to three in a few, with carve-outs in Texas. Maximum weekly benefits vary by an order of magnitude depending on the state's average weekly wage. Statute of limitations ranges from 1 year to 6. This lookup compresses every relevant fact into one card per state.
State coverage requirement lookup
All 51 jurisdictions, real coverage thresholds, max weekly benefit, statute of limitations, penalties.
Alabama
NCCI
- Coverage threshold
- Employers with 5 or more employees are required to carry workers' compensation insurance.
- Max weekly benefit
- $1,170 (2024)
- Statute of limitations
- 2 years
- Penalty for non-coverage
- Failure to carry workers' compensation insurance is a misdemeanor, punishable by fines up to $1,000 and/or imprisonment up to one year, plus potential civil penalties.
- Subcontractor liability
- General contractors can be held liable for injuries to employees of uninsured subcontractors.
- Audit window
- within 90 days of policy expiration
- Schedule credit cap
- 25%
How this tool works
Each state's workers compensation requirement is filed in two places: the state's department of insurance (which regulates carriers) and the state's labor or industrial commission (which administers the benefit schedule). Together they govern who must carry coverage, what the policy must pay, and what happens to uncovered employers. The lookup pulls from both sets of sources via our state-facts dataset.
Coverage threshold is the most-asked question. Most states require workers comp at one or more employees, with common carve-outs for sole proprietors, agricultural workers, domestic employees, and casual labor. The lookup shows the exact threshold language so you do not have to interpret the rule. For edge cases (a single household employee, a one-employee construction LLC), confirm with the state agency before relying solely on this lookup.
Max weekly benefit is the indemnity ceiling for temporary total disability (TTD) and is the floor for most indemnity calculations downstream. The lookup shows both the dollar figure and the effective year, so you can tell at a glance whether the data is current. We re-verify annually with the state's labor commission.
Statute of limitations matters for both employer (records retention) and injured worker (claim filing window). Penalty for non-coverage tells you the downside if the state catches you uninsured, ranging from civil fines to criminal misdemeanor or felony in stricter states. Subcontractor liability is the rule for whether your uninsured 1099 contractor's injury falls back to you as the general contractor; for almost every state, the answer is yes, the lookup shows the exact language.
Audit window is when your carrier can come back to reconcile estimated payroll vs actual; ranges from 60 days to 180 days post-policy-expiration. Schedule-credit cap is the maximum discretionary discount your underwriter can apply at renewal. State fund is the public alternative carrier; in monopolistic states this is the only option.
Frequently asked questions
How many states require workers comp coverage?
All 50 states plus DC require workers compensation coverage in some form, but the threshold (when coverage becomes mandatory) varies. Some states require it at one employee, others at three or more, and Texas allows opt-out. The lookup shows your exact state's rule.
What does "monopolistic state" mean?
Four states (Ohio, North Dakota, Washington, Wyoming) require workers comp to be purchased through the state-run insurance fund, private carriers cannot write workers comp in those states. The lookup tags these states with a "monopolistic" badge.
What is an independent bureau state?
States like California (WCIRB), New York (NYCIRB), and a few others have their own rating bureau, separate from NCCI. The class codes and rating rules can differ. The lookup shows the rating authority for each state.
Why do some states have a higher max weekly benefit than others?
Maximum weekly TTD/PPD benefits are pegged to the state's average weekly wage and are typically updated annually by the labor agency. High-wage states (CA, NY, MA, AK) cap benefits at higher dollar levels than low-wage states.
Where do these numbers come from?
Every value in the lookup is sourced from a state insurance department filing or rating-bureau publication; the underlying JSON files include source citations. Last verified is timestamped at the dataset level.