2020 Analysis of Workers' Compensation Laws - 13

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

Penalties on Failure to Insure

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.

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 years 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

For not submitting a statement of wages, the maximum penalties are $500 for a first contravention, $2,000
for a second, and $10,000 for a third. Employers who underreport or underestimate their payrolls by more
than 25% over the calendar year will be charged an additional 12% surcharge on the underreported or
underestimated portion of the actual assessment.

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. 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.

Jurisdiction

Type of Law

Insurance

West Virginia

Compulsory

Wisconsin

2020 Analysis of Workers' Compensation Laws | 13

2020 Analysis of Workers' Compensation Laws

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