What Are Workers’ Comp Requirements by State?
Most states require coverage for most employers, but thresholds, owner rules, and insurance options vary by state.
California requires coverage; most private Texas employers can opt out subject to separate rules.
List each employee work state, including remote locations, then ask that state’s agency about thresholds, owners, contractors, and available insurers. Check the quote’s state schedule before staff begin work.
Coverage Guides Related to Workers’ Compensation Insurance
Sources for Workers’ Compensation Insurance Answers
- Workers’ Compensation Insurance. National Association of Insurance Commissioners; Opening definition; mandatory coverage except Texas opt-in; exclusive remedy; monopolistic state funds; self-insurance note. Accessed 2026-09-25.
- DWC employer information. California Department of Industrial Relations, Division of Workers’ Compensation; Opening trade-off and California requirement; basic benefits including medical care, temporary and permanent disability, supplemental job displacement, return-to-work supplement and death benefits; out-of-state employer note. Accessed 2026-09-25.
- Employer resources. Texas Department of Insurance, Division of Workers’ Compensation; In Texas, private employers can choose to carry workers’ compensation insurance coverage, but it is not required in most cases; lost wages and medical benefits; except when gross negligence results in a fatality, coverage limits liability. Accessed 2026-09-25.
- State Workers’ Compensation Officials. U.S. Department of Labor; State and territory workers’ compensation contacts. Accessed 2026-09-25.