2019 Analysis of Workers' Compensation Laws - 13

Chart I-Type of Law and Insurance Requirements, cont.
SelfInsurance

Jurisdiction

Type of Law

Insurance

Washington

Compulsory

Required in
state fund

Permitted

Claim cost penalty: 50% to 100% of cost of the injury. Unregistered penalty: $500 or twice the
unpaid premium, whichever is greater.

West Virginia

Compulsory

Required

Permitted
through approval
of the Industrial
Council

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.

Wisconsin

Compulsory

Required

Permitted

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.

Wyoming

Compulsory15

Required

Permitted if work
is determined
to be not extrahazardous

Fine of not more than $750 for first conviction; fine of not more than $10,000 for subsequent
convictions plus 0.01% interest per month or $100 per month, whichever is greater, on unpaid
balance. Employer may be enjoined from doing business and liable to suit with defenses abrogated.

American
Samoa

Compulsory

Required

Virgin Islands

Compulsory

Required in
territorial
fund

Not permitted

Employer is liable for compensation and expenses plus penalty equal to 30% of compensation and
expenses. Fine up to $500, imprisonment up to six months, or both. Interest on premiums in default.
Employer may be enjoined from doing business. Employer is liable to suit with defenses abrogated.

FECA

Compulsory

Federal
appropriation

Longshore
Act

Compulsory

Required

Permitted

Fine up to $10,000, one year in prison, or both for each corporate officer for failure to secure
payment of compensation.

Alberta

Compulsory

Required in
provincial
fund

Not permitted

Fine up to $25,000 plus additional penalties at the discretion of the board for failure to pay premium.
Security may be required in cases of nonpayment. Where security is not furnished, the board may
order the employer to cease employment of workers.

British
Columbia

Compulsory

Required in
provincial
fund

Not permitted
except for some
historical entities
(e.g., federal and
provincial crown)

There is no penalty for failing to insure. If, at the time of an injury, the employer had failed to
register, the employer must pay the full costs of a worker's claim. The board will register the firm,
and the effective date of registration is the date the employer first employed workers. If the firm
was employing workers so that registration would have been required in a previous year, the board
may backdate the registration as many as three years prior to the current year, and the employer will
be responsible to pay those assessments. An overdue charge may also be added to the account if an
employer has an overdue account.

Manitoba

Compulsory

Required in
provincial
fund

Permitted16

If an employer fails to register with the Workers' Compensation Board, the Board may go back and
require the employer to pay up to two to five years of assessment premiums prior to the current
year. Penalty for late filing of payroll return is 5% of the employer's assessment; penalty for failure
to submit payroll return is 5% or 10% of the employer's assessment. Inaccurate reporting may result
in a penalty of 15% of the difference between the amount reported by the employer and the amount
determined by the Board. In all cases, maximum penalty is $5,000 per year.

New
Brunswick

Compulsory

Required in
provincial
fund17

Permitted for
federal and
provincial crown

An amount not exceeding $500 for not submitting a statement of wages (53(5) of Workers'
Compensation Act)

Newfoundland and
Labrador

Compulsory

Required in
territorial
fund

Not permitted

Maximum penalty $2,000 for failure to submit statement of wages. Failure to pay assessment
results in assessment plus costs of collection and interest on the outstanding assessment. Employer
may be held liable for costs of claims or injuries during period of default.

Northwest
Territories
and Nunavut

Compulsory

Required in
territorial
fund

Not permitted

Employers who fail to register within 10 days of operating or establishing business are charged a
penalty. The penalty for an employer who was not required to pay an assessment the previous year
is equal to 15% of the employer's current year assessment. The penalty for all other employers is
equal to 15% of their previous year's assessment. The minimum penalty for failing to provide the
required information is $25, and the maximum is $10,000. The Workers' Safety and Compensation
Commission may reduce or waive a penalty if the employer provides a reasonable explanation.
Employers who fail to register must pay a penalty to the Commission and are liable for the costs
of any claims submitted by their workers. This policy addresses registration, payroll, penalty, and
liability issues for new and unregistered employers.

Nova Scotia

Compulsory

Required in
provincial
fund

Permitted for
federal and
provincial crown

Coverage backdated and penalty charged on outstanding assessment equal to 10% of assessment
owed. If employer registers as a result of filing a claim, the cost of the claim may be charged.

Penalties on Failure to Insure

2019 Analysis of Workers' Compensation Laws | 13

2019 Analysis of Workers' Compensation Laws

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