How to Comply With Workers' Compensation Laws

In most states, the law requires that all businesses which maintain employees must cover those employees under workers' compensation. Workers' comp provides employees with reimbursement for lost wages, medical expenses and other compensation should an unintentional injury occur while they are working. While workers' compensation may seem overwhelming to a new business owner, the steps below will guide you in complying with work comp legal requirements.

Instructions

1. Contact your local Division of Workers' Compensation office (under the Department of Labor and Industrial Regulations) to obtain information regarding the work comp laws in your state. You can also obtain the regulations from the website containing state statutes, should one be available for your state.

2. Determine whether the individuals who work for you are employees or independent contractors (see Related eHow). Examine each worker's job specifications individually. In some states, distinguishing between the two may make a difference in the required coverage.

3. Be sure that you classify a worker correctly. You may face significant penalties if the work comp division discovers an incorrect classification when an employee faces an injury on the job.

4. Ask your business's insurance company if they provide workers' compensation insurance. Obtain detailed information on the provisions and premiums and compare them to other providers for the best rate and benefits.

5. Consult with a work comp attorney to be sure that you fully understand and correctly comply with the workers' compensation laws in your state.

Tips & Warnings

• Workers' compensation coverage is a requirement for every employer in all U.S. states, with the exception of New Jersey and Texas, where work comp coverage is elective.