Although workers compensation exists throughout the country, there are different workers compensation laws in each state. Basically, workers compensation laws require most employers to pay a type of insurance that then covers the expenses of employees injured at work.

In nearly every state, however, there are some exceptions to what type of employee is covered by workers’ compensation requirements.

Common Exceptions to Workers’ Compensation Laws

One of the groups that workers’ compensation laws most commonly do not cover across all states is what’s called casual employees. A casual employee is a worker who does not have set hours or a specific amount of hours.

Another common exception applies to those who work for family — especially if the employee is related to the owner of a farm and works less than 40 hours per week, but the laws in each state vary greatly about this.

Some states have quite a few exceptions, but there are others with no exceptions at all. In Ohio, for example, workers compensation laws apply to any employee, even those who are hired or who work illegally.


Workers’ Compensation Laws by State

In the table below, we’ve gathered links to all the departments in charge of workers’ compensation laws and administration across the country. In addition to providing the law and the departments overseeing, we’ve listed the exemptions and some quirks of the laws from state to state.

State Workers' Compensation Statute State Workers’ Comp Department Exemptions and Special Rules
Alabama Alabama Code §25-5-1 et seq. Alabama Department of Labor
  • Not required for businesses with less than five employees

  • Does not cover casual employees, domestic servants, farm laborers, licensed real estate agents or product demonstrators

Alaska AS §23.30.005, et. seq Department of Labor & Workforce Development Doesn't cover contract entertainers, commercial fishermen, domestic servants, harvest/transient workers or taxi cab drivers
Arizona Arizona Revised Statutes Annotated §§23-901, et seq. Industrial Commission of Arizona Doesn't cover casual employees or independent contractors
Arkansas Arkansas Code Annotated § 11-9-101 et seq. Arkansas Workers' Compensation Commission Doesn't cover casual employees, farm laborers, inmates, or state employees
California California Labor Code Division 3, section 2700 through Division 4.7, section 6208 Department of Industrial Relations Doesn't cover amateur sporting event officials; deputy clerks; deputy sheriffs; domestic workers employed by parents, spouse or child; volunteers for non-profit recreational camps or ski patrols
Not providing workers compensation payments can result in a year in jail and failure to insure can cost a business $100,000 in fines
Colorado Colorado Revised Statutes §8-40-101, et seq. Department of Labor and Employment Doesn't cover drivers under lease agreements with common or contract carriers, inmates or volunteers
Connecticut Connecticut General Statutes Sections 31-275 through 31-355a, et seq. Workers' Compensation Commission Doesn't cover casual employees, independent contractors or sole proprietors
Delaware Delaware Code Annotated Title 19, §§2301-2397 Department of Labor Doesn't include a spouse or minor child of a farm employer not named on insurance, anyone who sells products not in a space controlled by the employer, or casual employees
District of Columbia District of Columbia Code Annotated §32-1501, et seq. Department of Employment Services
  • An employee whose employer is an uninsured subcontractor can assert a claim against the supervising general contractor

Florida Chapter 440, Florida Statutes, et seq. Department of Financial Services Doesn't apply to:

  • Bands, orchestras, musical or theater performers and DJs

  • Casual employees

  • Independent contractors (excluding construction industry)

  • Licensed real estate brokers

  • Some sports officials

  • Some taxi cab or other vehicle for hire operators

Georgia Official Code of Georgia Annotated §§34-9-1, et seq. Georgia State Board of Workers' Compensation Excludes rail common carriers engaged in interstate/intrastate commerce, domestic servants, farm laborers, independent contractors and licensed real estate salespeople or associate brokers
Hawaii Hawaii Revised Statutes, Chapter 386 Department of Labor and Industrial Relations Some contractors are exempt
Idaho Idaho Code §72-101, et. seq. Industrial Commission Doesn't apply to casual workers, domestic servants, officials of secondary school athletics, pilots of spraying or dusting planes, real estate brokers and salespeople, volunteer ski patrol
Illinois 820 Illinois Compiled Statutes Annotated 305/1, et seq. Illinois Workers' Compensation Commission Doesn't apply to farmers, jurors, or real estate brokers and salespeople

Business owners who fail to make payments face fines of $500 per day with a $10,000 minimum fine

Indiana Ind. Code §22-3-1-1 et seq. Workers' Compensation Board of Indiana Doesn't apply to agricultural workers, casual laborers, employees of fire or police departments that have pension funds, household employees and some railroad and railyard employees
Iowa Iowa Code §85.1 et seq. Iowa Workforce Development Doesn't apply to agricultural employees earning less than $2,500 in the year prior to the injury, casual or household employees who earned less than $1,500 in the year prior to injury or some officers of corporations or farms
Kansas Kansas Statutes Annotated §44-501 et seq. Department of Labor No exceptions. Applies to anyone who has entered into service or apprenticeship
Kentucky Kentucky Revised Statutes § 342.0011 et seq.;803
Kentucky Administrative Regulations. 25:009 et seq.
Kentucky Labor Cabinet Doesn't apply to domestic servants (if there are less than two employed in the home for 40 or less hours per week) or maintenance or similar type workers employed in a private home if the employer has no other employees subject to workers' comp
Louisiana Louisiana Revised Statutes Annotated §23:1021 et seq.
Louisiana Revised Statutes Annotated §33:2581
Louisiana Workforce Commission Doesn't apply to employees of private homes, employees of unincorporated farms or musicians or other performers under contract
Maine Maine Revised Statutes Annotated, title 39-A, or 39-A M.R.S.A. §101 et seq. Workers' Compensation Board Doesn't apply to certain agricultural employees, independent contractors or people covered by admiralty law
Maryland Maryland Code Ann., Lab & Empl. §9-101 (2014) et seq.; Code of Maryland Regulations (COMAR) Title 14, §09.01.01 et seq. Workers' Compensation Commission Applies to any regular payroll employee but not to independent contractors
Massachusetts Massachusetts General Laws, Chapter 152 Executive Office of Labor and Workforce Development Doesn't apply to casual employees, people employed in professional athletics, real estate brokers and others who work on commission only or those employed in interstate or foreign commerce
Michigan Michigan Compiled Laws Annotated 418.101-941 Department of Licensing and Regulatory Affairs Exclusions apply for domestic workers, real estate brokers or agents, some agricultural employees and some smaller employers
Minnesota Minnesota Statutes Annotated Ch. 175A and 176, et seq. Department of Labor and Industry Doesn't apply to farmers or family members of farmers who exchange work with other farmers.
Mississippi Section 71-3-1 et. seq., MISS. CODE ANN Workers' Compensation Commission Doesn't apply to independent contractors
Missouri Chapter 287 R.S.Mo. 2005 Department of Labor and Industrial Relations Doesn't apply to direct sellers, domestic servants, farm laborers, inmates, owner/operators of leased trucks in interstate commerce, sports officials or volunteers
Montana Mont. Code Ann. §39-71-101, et.seq Department of Labor and Industry Doesn’t apply to:

  • Casual employment

  • Cosmetologist or barbers

  • Dependent member of the employer's family

  • Domestic servants

  • Direct sellers

  • Freelance photographers and authors

  • Jockeys

  • Managers of a ditch company

  • Newspaper deliverers

  • Ordained ministers

  • People working solely within the boundaries of Indian reservations

  • Petroleum land workers

  • Real estate brokers or salesmen

  • Some officials at athletic events

  • Some sole proprietors

Nebraska Nebraska Revised Statutes §48-101 et. seq. Workers' Compensation Court Doesn't apply to agricultural employees, domestic servants or railroad employees engaged in interstate commerce
Nevada Nev. Rev. Stat. Chapters 616A-616D, Nev. Rev. Stat. Chapter 617 Department of Business & Industry Doesn't apply to casual employees, direct salespeople, domestic workers, members of the clergy, musicians (who work for two consecutive days or less), sports officials paid nominal fees, theatrical performers or voluntary ski patrol
New Hampshire New Hampshire Revised Statutes Annotated 281-A Workers' Compensation Division Doesn't apply to direct sellers, railroad employees engaged in interstate commerce, real estate brokers/appraisers or agents or those providing services for residential placement of individuals with disabilities
New Jersey New Jersey Statutes Annotated 34:15-1 et seq. Department of Labor and Workforce Development Doesn't apply to casual workers, domestic workers, employees who are willfully negligent, independent contractors or inmates
New Mexico New Mexico Workers' Compensation Act, New Mexico Statutes Annotated §§52-1-1, et seq. Workers' Compensation Administration Doesn't apply to domestic servants, farm employees, real estate agents or those with waiver from the state
New York Workers' Compensation Law of the State of New York Workers' Compensation Board Doesn't apply to:

  • Anyone engaged in yard work or household chores or making repairs or painting in and about a one-family owner-occupied residence

  • Babysitters and minors over the age of 14 engaged in casual employment for one family Clergymen

  • Domestic employees working less than 40 hours per week

  • Employees of municipalities and other political subdivisions who are not engaged in hazardous employment

  • Longshoremen and harbor workers

  • Railroad employees

  • Uniformed sanitation workers, firefighters and police officers in the employment of the City of New York

Failure to make workers compensation payments can lead to felony charges

North Carolina N.C. Gen. Stat. §97 Industrial Commission Doesn't apply to casual employees
North Dakota North Dakota Century Code Title 65 (Chapters 65-01 through 65-10) Workforce Safety and Insurance Doesn't apply to anyone doing something illegal, casual employees, independent contractors, spouse or child under age 22 of the employter, members of boards of directors, newspaper delivery people or real estate brokers and salespeople
Workers’ compensation insurance must be bought from a state fund.
Ohio Ohio Revised Code §4121.01 et. seq.
Ohio Administrative Code §4121-01 et. seq.
Bureau of Workers' Compensation No exemptions

Workers’ compensation insurance must be bought from a state fund.

Oklahoma Okla. Stat. tit. 85, §§301-413 Workers' Compensation Court Does not apply to horticulture workers not using motorized machines, anyone employed by an employer with less than five employees who are all related, employees of tax-exempt youth sports leagues, domestic servants in a private home, real estate brokers, sole proprietors, volunteers, owner-operators of trucks or workers who provide medical care or social services
Oregon Workers' Compensation Law. Or. Rev. Stat. §656.001 Workers' Compensation Division Doesn’t apply to casual employees or inmates
Pennsylvania Worker's Compensation Act of June 24, 1996, P.L. 350, No. 57 Bureau of Workers' Compensation Doesn't cover casual employees
Intentional noncompliance with workers’ compensation laws is a felony that can result in a sentence of up to seven years.
Rhode Island R.I. Gen. Laws. 27-7.1-1, et. seq.; Department of Labor & Training Doesn't apply to casual employees, farmers or farm laborers, nursery workers, salespersons including real estate brokers and sworn employees of the state
South Carolina S.C. Code Ann. §42-1-110 et seq. Workers' Compensation Commission Doesn't apply to casual employees
South Dakota SDCL Title 62 Department of Labor and Regulation Doesn't apply to domestic servants working less than 20 hours a week, farm workers, independent contractors or volunteers
Tennessee T.C.A. §50-6-101, et seq. Department of Labor and Workforce Development Doesn't apply to some undocumented workers
Texas Texas Labor Code Annotated § 401.001 et. seq Department of Insurance Doesn't apply to federal employees or independent contractors
Utah Utah Code Annotated §34A-2-101, et seq. Labor Commission Doesn't apply to real estate brokers
Vermont Vermont Statutes Annotated title 21, § 601 et seq. Department of Labor Doesn't apply to assistant judges, casual employees, those engaged in amateur sports, domestic workers, farm workers, illegally hired minors, members of an employers family who live in their home or sole proprietors or partners in an unincorporated business
Virginia Virginia Workers' Compensation Act, Title 65.2 Code of Virginia 1950 Workers' Compensation Commission Doesn't apply to anyone whose employment is not within the usual course of the employer's business
Washington RCW 51.04.010 to 51.98.080 Department of Labor and Industries Exemptions include:

  • Booth renters

  • Certain workers for businesses registered within the Registration of Contractors or licensed Electricians and Electrical Installations

  • Children employed by parents on a family farm

  • Domestic workers

  • Employees not engaged in the business they were hired for

  • Entertainers hired for specific performances

  • Gardeners

  • Home maintenance workers

  • Insurance producers

  • Jockeys

  • Newspaper delivery workers

  • Services performed for sustenance or help

  • Sole proprietors or partners

  • Some officers of corporations

Workers’ compensation insurance must be bought from a state fund.

West Virginia W. Va. Code §23-1-1 et seq. Offices of the Insurance Commission Doesn't apply to companies with fewer than five employees, church workers, casual employees, domestic servants, federal employees, volunteer police or rescue or certain employees engaged in professional sports
Wisconsin Wis. Stat. §102.01-.89 (2011) Department of Workforce Development Doesn’t apply to domestic servants or most volunteers
Wyoming Wyoming Statutes §27-14-101, et seq. Department of Workforce Services Doesn’t apply to:

  • Casual employees

  • Childcare workers employed by the state

  • Elected officials

  • Employees in private homes

  • Federal government employees

  • Foster parents

  • Independent contractors

  • Officers of corporations

  • Professional athletes

  • Sole proprietors

  • Volunteers

Workers’ compensation insurance must be bought from a state fund.


Finding Out More About Workers’ Compensation Laws

This is only a broad overview of workers’ compensation laws. You can learn more about what to do if you’re injured at work by reviewing our workers’ compensation lawsuit guide or learning how a workers’ compensation settlement works.