USCC Workers Comp 2023 - 12

Chart I-Type of Law and Insurance Requirements, cont.
Jurisdiction
SelfNorth
Carolina
North
Dakota Compulsory
Required in
state fund
Ohio
Oklahoma
Oregon
Compulsory
Compulsory
Compulsory
Required in
state fund
Required
Required
Type of Law
Compulsory
Insurance
Required
Insurance
Individual and
group11
Not permitted
Penalties on Failure to Insure
Civil penalty of $1 per day per employee (maximum $100, minimum $50 per day), imprisonment, or both.
Employer is liable to suit in civil system or Workers' Compensation.
Class A misdemeanor if the employer willfully misrepresents payroll or fails to secure coverage; $5,000
plus three times the difference between the premium paid and the amount the employer should have paid.
If premium due exceeds $1,000, it is a Class C felony. Employer may be enjoined from employing uninsured
workers. Uninsured employer liable for damages for injuries or death, with common-law defense abrogated.
Permitted
Permitted;
individual and
group
Individual and
group
Pennsylvania Compulsory
Required
Individual and
group
Minor misdemeanor. Fine up to $100. If willful, second-degree misdemeanor. Fine up to $750, imprisonment
up to 90 days, or both. Employer may be enjoined from doing business. Employer is also liable to suit with
defenses abrogated.
Civil fine up to $1,000 per day; misdemeanor fine not to exceed $50,000. Failure to secure the payment of
compensation or pay civil penalty assessed may result in Workers' Compensation Commission petitioning
the district court for an order enjoining the employer from engaging in further business until compliant.
Liable for payment of all claims and administrative costs. Minimum fine of $1,000 for first violation or twice
the amount of premium evaded, whichever is greater, and up to $250 per day for continuing violations.
Employer is liable to suit brought by an injured worker, with affirmative defenses abrogated. Employer may
be enjoined from hiring workers for continuing violations.
Third-degree misdemeanor. Fines up to $2,500 and/or one year in prison for each day of noncoverage can
be imposed. If failure to insure is intentional, offense is considered a third-degree felony with fines of up to
$15,000 and seven years in prison per day of noncoverage. Any party may file a criminal complaint against
an uninsured party with the county district attorney's office. Employer may be enjoined from doing business
by issuance of stop-work order.
Rhode Island Compulsory
Required
Individual and
group
South
Carolina
Compulsory
Required
Individual and
group
Felony. Intentional violators are subject to a civil penalty not to exceed $1,000 per day of noncompliance
and two years' imprisonment. Corporate officers, partners in LLPs, and managers of LLCs are personally
liable. If violation is unintentional, civil penalties will be equal to one year of the employer's annual
premium up to triple that amount.
Any employer required to secure the payment of compensation under this title who refuses or neglects to
secure such compensation shall be punished by a fine of $1 for each employee at the time of the insurance
becoming due, but not less than $10 nor more than $100 for each day of such refusal or neglect, and until
the same ceases, and he shall be liable during continuance of such refusal or neglect to an employee either
for compensation under this title or at law in an action instituted to recover damages for personal injury or
death by accident.
South Dakota Compulsory
Compulsory
Tennessee
Texas
Utah
Vermont
Elective12
Required
Required
Required
Compulsory
Compulsory
Required
Required
Individual
Individual and
group
Permitted,
individual, and
group13
Permitted
Permitted
Employer liable to suit for damages or double compensation and medical care as benefits.
Administrative fine up to 2.5 times the average yearly workers' compensation and group insurance
premium. Intentional failure to insure may be considered a fraudulent insurance act and punishable as a
misdemeanor or as a felony. In construction cases, additional fines apply.
Employer liable to suit with defenses abrogated.
Class B misdemeanor. Minimum fine $1,000 but not more than three times the premium employer would
have paid during period of noncompliance. Employer liable for all compensation paid from Uninsured
Employers' Fund plus interest, costs, and attorney's fees.
Fine up to $150 per day with no cap. Fine may increase to $250 per employee per day after order from
Commissioner to obtain insurance. Additionally, Commissioner may issue emergency stop-work order
closing business until it comes into compliance. If stop-work order is issued, employer is debarred from
contracting with state or municipalities for up to three years.
Virginia
Washington
West Virginia
Compulsory
Compulsory
Compulsory
Required
Required in
state fund
Required
Individual and
group
Permitted14
Permitted
through
approval of
the Industrial
Council
Wisconsin
Compulsory
Required
Permitted
Intentionally uninsured employer commits Class 2 misdemeanor. Civil penalties of $250 per day for each
day of noncompliance, subject to a maximum penalty of $50,000. Employer liable to suit with certain
defenses abrogated and may be enjoined from doing business.
Claim cost penalty: 50% to 100% of cost of the injury. Unregistered penalty: $500 or twice the unpaid
premium, whichever is greater.
Employer is subject to an administrative fine by the Insurance Commissioner up to $10,000, and directors
and officers of an uninsured company can be personally liable for any claims made out of the uninsured
fund. Employer liable to suit with certain defenses abrogated, may be enjoined from doing business in the
state, and may have certain state-issued licenses revoked. Employer and certain owners and officers may
be listed on the Employer Violator System.
Fine of twice the amount of premium not paid during an uninsured time period or $750, whichever is
greater. Under certain circumstances, an employer can be subject to a penalty of $100 for each day that he
or she is uninsured, up to seven days. Employer may be restrained from doing business pending compliance.
Employer is liable for all benefits awarded on uninsured claims.
12 | 2023 Analysis of Workers' Compensation Laws

USCC Workers Comp 2023

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