Arkansas workers comp requirements decide exactly when an employer must carry coverage, who counts toward the threshold, and the penalty for going without. This guide breaks down the Arkansas workers comp requirements in plain English. (Injured instead of hiring? See our Arkansas settlement and claim guides linked below.) All figures are from Arkansas sources, verified as of June 2026.
Arkansas at a Glance
| Required at | 3 employee(s) |
| Which workers count | Both full-time and part-time employees count toward the three-employee threshold; for building or building-repair (construction) work coverage is required at two or more employees, and a subcontractor (or a contractor who subcontracts any part of the work) must carry coverage with one or more employees. |
| Who is exempt | Agricultural farm laborers, real estate agents, domestic workers, employees of religious/charitable/nonprofit organizations, casual employees, certain state employees, and inmates are exempt and do not count; sole proprietors, partners, LLC members, and corporate officers may exclude themselves. |
| Penalty for going without | Under Ark. Code 11-9-406, an employer who fails to secure compensation is subject to a fine of up to 10000 (payable to the Death and Permanent Total Disability Trust Fund) or is guilty of a Class D felony, and the Commission may also assess a fine of up to 1000 per day of violation; the employer also becomes personally liable for all costs of an injured employee. |
| Monopolistic state? | No — private carriers |
In This Arkansas Guide:
Is Workers’ Comp Required in Arkansas?
Yes, workers’ compensation is required in Arkansas for most employers once they regularly have three or more employees, with stricter thresholds for construction.
Arkansas Workers’ Comp Requirements at a Glance
Here are the exact Arkansas workers comp requirements every employer should know:
| Employees that trigger the mandate | 3 |
| Which workers count | Both full-time and part-time employees count toward the three-employee threshold; for building or building-repair (construction) work coverage is required at two or more employees, and a subcontractor (or a contractor who subcontracts any part of the work) must carry coverage with one or more employees. |
| Who is exempt | Agricultural farm laborers, real estate agents, domestic workers, employees of religious/charitable/nonprofit organizations, casual employees, certain state employees, and inmates are exempt and do not count; sole proprietors, partners, LLC members, and corporate officers may exclude themselves. |
| Owners & officers | Yes — sole proprietors, self-employed employers, partners, corporate officers, LLC members, and members of a professional association may exclude themselves from coverage in the insurance contract by applying to the Arkansas Workers’ Compensation Commission for a Certificate of Non-Coverage (Form A); approval exempts only the individual who applied. |
| Penalty for going without | Under Ark. Code 11-9-406, an employer who fails to secure compensation is subject to a fine of up to 10000 (payable to the Death and Permanent Total Disability Trust Fund) or is guilty of a Class D felony, and the Commission may also assess a fine of up to 1000 per day of violation; the employer also becomes personally liable for all costs of an injured employee. |
| Monopolistic state? | No — buy from private carriers |
How to Get Workers’ Comp Coverage in Arkansas
Arkansas employers obtain coverage from a private insurance carrier, or through the NCCI-administered assigned-risk (residual market) plan if unable to buy in the voluntary market, or by qualifying as a state-approved self-insurer through the Arkansas Workers’ Compensation Commission.
Private market: YES
What Workers’ Comp Covers in Arkansas
Workers’ compensation is a no-fault system: an injured employee gets benefits without having to prove the employer did anything wrong, and in exchange gives up the right to sue for most workplace injuries. A typical Arkansas policy pays for medical treatment tied to a work injury, part of the wages lost while the worker recovers, longer-term disability benefits if the injury is permanent, and death benefits to a family.
It also includes employers-liability coverage, which protects the business if an injury still leads to a lawsuit.
Employees vs. Independent Contractors in Arkansas
The most common way employers get the Arkansas workers comp requirements wrong is by assuming a worker is an “independent contractor” who does not count. State agencies look at how the work is actually controlled, not the label on a 1099. If Arkansas decides a contractor was really an employee, the business can owe back premiums and penalties as if coverage should have been in place all along.
When you are close to the employee threshold, confirm each worker’s status with your state board before you decide you are exempt.
Other Arkansas workers’-comp rules: Owners/officers who exclude themselves must obtain a Certificate of Non-Coverage (Form A) from the AWCC; the employer pays the full premium with no deduction from employee wages; injured workers should confirm current details with the Arkansas Workers’ Compensation Commission and a licensed attorney, as figures and rules can change.
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Understanding Arkansas Workers Comp Requirements
The Arkansas workers comp requirements exist so injured employees get care and lost wages without having to sue. For most employers, the Arkansas workers comp requirements come down to one number: the employee count that triggers the mandate, shown in the table above. Once you hit that count, Arkansas workers comp requirements apply whether you planned for them or not, and the penalty for going without is real.
If any part of the Arkansas workers comp requirements is unclear, your state board can confirm the threshold, the exemptions, and how to get covered.
Need to get covered? If you are an employer in Arkansas shopping for a policy, our sister site compares small-business insurance, including workers’ comp. Compare business insurance options →
Frequently Asked Questions
Is workers’ comp required in Arkansas?
Yes, workers’ compensation is required in Arkansas for most employers once they regularly have three or more employees, with stricter thresholds for construction.
What is the penalty for not having workers’ comp in Arkansas?
Under Ark. Code 11-9-406, an employer who fails to secure compensation is subject to a fine of up to 10000 (payable to the Death and Permanent Total Disability Trust Fund) or is guilty of a Class D felony, and the Commission may also assess a fine of up to 1000 per day of violation; the employer also becomes personally liable for all costs of an injured employee.
Who is exempt from Arkansas workers’ comp?
Agricultural farm laborers, real estate agents, domestic workers, employees of religious/charitable/nonprofit organizations, casual employees, certain state employees, and inmates are exempt and do not count; sole proprietors, partners, LLC members, and corporate officers may exclude themselves.
Official Arkansas Sources & Resources
- Arkansas Arkansas Workers’ Compensation Commission (AWCC), within the Arkansas Department of Labor and Licensing: https://labor.arkansas.gov/workers-comp/
- Arkansas Workers’ Comp Statute: https://law.justia.com/codes/arkansas/title-11/chapter-9/ (Arkansas Workers’ Compensation Law, Ark. Code 11-9-101 et seq.)
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
These Arkansas workers comp requirements were last verified against official sources in June 2026. Rules and penalties change — confirm the current figure with your state workers’-comp board or a licensed agent.
More Arkansas Workers’ Comp Guides
- Arkansas Workers’ Comp Settlements
- How to File a Arkansas Workers’ Comp Claim
- Workers’ Comp Guides for All 50 States
Disclaimer: This guide is informational only and is not legal, medical, or financial advice. Workers Comp Explained is an independent educational resource, not a law firm or insurer. Workers’ comp benefits, settlement values, deadlines, and requirements vary by state and by the specific facts of your injury and change over time, and any settlement figures here are illustrative only.
Confirm your rights and any deadline with your state’s workers’ compensation board and a licensed attorney before you act.