2019 Analysis of Workers' Compensation Laws - 10

Chart I-Type of Law and Insurance Requirements
SelfInsurance

Penalties on Failure to Insure

Required

Individual and
group

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.

Compulsory

Required

Permitted only on
Board approval

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.

Arizona

Compulsory

Required

Individual and
group

$1,000 civil penalty plus a 10% penalty on all claim expenses. Award paid by special fund. Injunction
against doing business in state. Employer liable to suit with defenses abrogated.

Arkansas

Compulsory

Required

Individual and
group1

Fine up to $10,000 or Class D felony; possibly enjoined from engaging in further employment.
Employer liable to suit with defenses abrogated.

California

Compulsory

Required

Individual and
group

Misdemeanor punishable by up to one year imprisonment in county jail, $10,000 fine, or both. Mandatory
penalty upon issuance of stop order is $1,500 per employee; maximum $100,000. Employer may be
enjoined from doing business. Payments are credited to the Uninsured Employers Benefits Trust Fund.

Colorado

Compulsory

Required

Individual,
company, and
group

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.

Connecticut

Compulsory

Required

Permitted

Fine up to $50,000 for failure to insure. Employer may be enjoined from entering into any contracts
of employment.

Delaware

Compulsory

Required

Individual and
group

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.

District of
Columbia

Compulsory

Required

Permitted

Civil fine between $1,000 and $10,000.

Florida

Compulsory

Required

Individual and
group2

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 stop-work order.

Georgia

Compulsory

Required

Individual and
group

Misdemeanor. Compensation may be increased 10% plus attorney's fees. Penalty up to $5,000 per
violation.

Hawaii

Compulsory

Required

Individual and
group

$500 or $100 per employee per day during default, whichever is greater. Employer may be enjoined
from doing business.

Idaho

Compulsory

Required

Permitted

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.

Illinois

Compulsory

Required

Individual and
group

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

Compulsory

Required

Permitted3

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.

Iowa

Compulsory

Required

Individual and
group

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.

Kansas

Compulsory

Required

Individual and
group

Employer liable to suit. Penalty may be double the amount the premium would have been or
$25,000, whichever is greater.

Kentucky

Compulsory

Required

Individual and
group

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 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.

Jurisdiction

Type of Law

Insurance

Alabama

Compulsory

Alaska

10 | 2019 Analysis of Workers' Compensation Laws

2019 Analysis of Workers' Compensation Laws

Table of Contents for the Digital Edition of 2019 Analysis of Workers' Compensation Laws