2020 Analysis of Workers' Compensation Laws - 12

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

Jurisdiction

Type of Law

Insurance

Penalties on Failure to Insure

New Mexico

Compulsory

Required

Individual,
group, and
pools9

Employer may be enjoined from doing business and fined up to $1,000 for each instance of noncompliance.
With violation of any provision of the Group Self-Insurance Act or of any rules or regulations passed, the
monetary penalty shall not exceed $1,000 for each act or violation and shall not exceed $10,000 combined.
The Group Self-Insurance penalty statute can be found at NMSA 1978, §52-6-21, and the general penalty
statute is §52-1-61.

New York

Compulsory

Required

Individual

Violators are not eligible to bid on public works contracts.10

North
Carolina

Compulsory

Required

Individual and
group11

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.

North Dakota

Compulsory

Required in
state fund

Not permitted

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.

Ohio

Compulsory

Required in
state fund

Permitted

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.

Oklahoma

Compulsory

Required

Permitted;
individual and
group

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.

Oregon

Compulsory

Required

Individual and
group

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.
Enjoined from hiring workers.

Pennsylvania

Compulsory

Required

Individual and
group

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

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.

South
Carolina

Compulsory

Required

Individual and
group

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, and in any such action such employer shall not be permitted to defend upon any of the
grounds mentioned in §42-1-510.

South Dakota

Compulsory

Required

Individual

Employer liable to suit for damages or double compensation and medical care as benefits.

Tennessee

Compulsory

Required

Individual and
group

Administrative fine up to two-and-a-half 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.

Texas

Elective12

Required

Permitted,
individual, and
group13

Employer liable to suit with defenses abrogated.

Utah

Compulsory

Required

Permitted

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.

Vermont

Compulsory

Required

Permitted

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 issued, employer is debarred from
contracting with state or municipalities for up to three years.

Virginia

Compulsory

Required

Individual and
group

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.

Washington

Compulsory

Required in
state fund

Permitted14

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

12 | 2020 Analysis of Workers' Compensation Laws

2020 Analysis of Workers' Compensation Laws

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