USCC Workers Comp 2023 - 10

Chart I-Type of Law and Insurance Requirements
Jurisdiction
SelfAlabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District
of
Columbia
Florida
Type of Law
Compulsory
Compulsory
Compulsory
Compulsory
Compulsory
Compulsory
Compulsory
Compulsory
Compulsory
Compulsory
Insurance
Required
Required
Required
Required
Required
Required
Required
Required
Required
Required
Insurance
Individual and
group
Permitted
only on Board
approval
Individual and
group
Individual and
group1
Individual and
group
Individual,
company, and
group
Permitted
Individual and
group
Permitted
Individual and
group2
Penalties on Failure to Insure
Fine between $100 and $1,000. Employer may be enjoined from doing business and liable to suit with
defenses abrogated, plus double amount of compensation.
Civil penalty of up to $1,000 per employee for each uninsured day may be assessed against an uninsured
employer. The Board or the director may issue a stop-work order. Violation of a stop-work order results in an
additional mandatory penalty of $1,000 per day.
$1,000 civil penalty plus a 10% penalty on all claim expenses. Award paid by special fund. Injunction
against doing business in the state. Employer liable to suit with defenses abrogated.
Fine up to $10,000 or Class D felony; possibly enjoined from engaging in further employment. Employer
liable to suit with defenses abrogated.
Misdemeanor punishable by up to one year's imprisonment in county jail, $10,000 fine, or both. Mandatory
penalty upon issuance of stop order is $1,500 per employee; maximum is $100,000. Employer may be
enjoined from doing business. Payments are credited to the Uninsured Employers Benefits Trust Fund.
Employer may also be enjoined from doing business and/or fined up to $250 for every day that the employer
fails or has failed to keep the insurance for the first violation, with a maximum of $500 per day for
subsequent violations. Penalties of 25% of benefits for all noninsured claims.
Fine up to $50,000 for failure to insure. Employer may be enjoined from entering into any contracts of
employment.
Fine of $10 per day per employee (minimum of $250 per day). Employer may be enjoined from doing
business. Employer liable to suit with defenses abrogated.
Civil fine between $1,000 and $10,000.
Fine of $1,000 or two times the amount the employer would have paid during periods it illegally failed
to secure coverage in the preceding two-year period, whichever is greater. Failure to provide coverage is
deemed an immediate and serious danger to public health, safety, or welfare sufficient to justify stop-work
order issuance. Subject to prosecution for felony for knowingly failing to secure coverage, if required, and
a penalty of $1,000 per day for each day an employer conducts business operations in violation of a stopwork
order.
Georgia
Hawaii
Idaho
Illinois
Compulsory
Compulsory
Compulsory
Compulsory
Required
Required
Required
Required
Individual and
group
Individual and
group
Permitted
Individual and
group
Misdemeanor. Compensation may be increased 10% plus attorney's fees. Penalty up to $5,000 per
violation.
$500 or $100 per employee per day during default, whichever is greater. Employer may be enjoined from
doing business.
Misdemeanor. Employer may be liable for penalty of $2 per day per employee or $25 per day, whichever is
greater, for each day failure continues. May be enjoined from doing business. Additional penalties include
$500 for the second violation and $1,000 for subsequent violations.
Commission may issue a citation in the amount of $500 to $2,500. After reasonable notice and hearings,
Commission may issue stop-work order and assess civil penalty of $500 per day for each day without
workers' compensation insurance, with a minimum penalty of $10,000. Knowing failure to provide workers'
compensation insurance is a felony. Uninsured employer loses the protection of the Workers' Compensation
Act.
Indiana
Iowa
Compulsory
Compulsory
Required
Required
Permitted3
Individual and
group
Kansas
Kentucky
Compulsory
Compulsory
Required
Required
Individual and
group
Individual and
group
Class A infraction. Maximum fine $10,000. Uninsured employer may be liable for medical and legal
expenses plus double compensation. May be enjoined from doing business.
Employer is liable for penalty up to $1,000 per violation and may be enjoined for further noncompliance. A
temporary or permanent writ of injunction may be ordered, enjoining an employer from operating without
insurance or self-insurance coverage. Employer is liable to suit with defenses abrogated and presumption
of negligence of employer.
Employer liable to suit. Penalty may be double the amount the premium would have been or $25,000,
whichever is greater.
Employer may be enjoined from doing business. If employer fails to maintain coverage, each employee
and each day of noncompliance shall constitute a separate offense for the purposes of determining the
fine or penalty. Employer is subject to criminal penalty, including a fine of $100 to $1,000, imprisonment
for 30 to 180 days, or both. Claimant may claim compensation and bring action at law or in admiralty with
employer's common-law defenses abrogated.
Louisiana
Compulsory
Required
Individual and
group
Compensation increased 50% and civil fine up to $10,000 ($250 per employee for the first offense; $500
per employee for the second offense with a maximum of $10,000). Employer may be enjoined from doing
business. Willful failure to insure is a felony and is subject to a criminal fine of up to $250 per day found to
be willfully uninsured and up to one-year imprisonment, with or without hard labor, or both. Failure to pay
judgment within 60 days, if uninsured, may be pursued by claimant as civil suit for legal damages.
10 | 2023 Analysis of Workers' Compensation Laws

USCC Workers Comp 2023

Table of Contents for the Digital Edition of USCC Workers Comp 2023