Workers comp coverage required in Washington
All employers with one or more employees must provide workers' compensation coverage. Verified 2026-05-09.
Who must carry workers comp in Washington?
Washington workers compensation coverage is required All employers with one or more employees must provide workers' compensation coverage.
The threshold language matters: states write the rule slightly differently. Some count any worker, some count only W-2 employees, some count owners separately, some have industry-specific exemptions (agriculture, domestic service, casual labor). For a Washington employer with a non-trivial workforce, the safest default is: assume coverage is required and confirm with the state department of insurance or a local agent.
How the threshold interacts with 1099s and subs
Washington has strict criteria for independent contractor status; workers are presumed employees unless specific conditions are met, making misclassification a significant risk. General contractors are generally responsible for ensuring subcontractors carry workers' compensation coverage; otherwise, the general contractor may be liable for injuries to the subcontractor's employees.
Penalty for going without
Employers failing to provide coverage face fines, penalties, and potential criminal charges, and are personally liable for injured workers' benefits. The financial penalty is usually a fraction of the human cost: an injured employee at an uncovered employer can sue directly under tort law instead of being limited to the workers comp benefit, exposing the owner to lost-wage damages, pain and suffering, and punitive damages without the corporate veil.
Related reading
FAQs
Who has to carry workers comp in Washington?
All employers with one or more employees must provide workers' compensation coverage.
When does the requirement kick in for a new Washington employer?
The clock starts on the first day the first qualifying employee is on the books. Washington does not have a grace period for new employers, so a policy needs to be bound on or before the first hire date. Some agents can issue same-day binders for low-risk class codes.
What is the penalty for not having workers comp in Washington?
Employers failing to provide coverage face fines, penalties, and potential criminal charges, and are personally liable for injured workers' benefits.
Do 1099 contractors trigger the coverage requirement in Washington?
Washington has strict criteria for independent contractor status; workers are presumed employees unless specific conditions are met, making misclassification a significant risk.
Are subcontractors counted toward the threshold in Washington?
General contractors are generally responsible for ensuring subcontractors carry workers' compensation coverage; otherwise, the general contractor may be liable for injuries to the subcontractor's employees.
What happens if I am audited and found non-compliant in Washington?
Washington typically issues a stop-work order, assesses back premium for the period of non-coverage, and adds penalties on top. Specifically: Employers failing to provide coverage face fines, penalties, and potential criminal charges, and are personally liable for injured workers' benefits. Severe or repeat violations can lead to criminal charges and personal liability for the business owner, separate from the corporate veil.