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 October 2026.
Arkansas at a Glance
| Required at | 3 employee(s) |
| Which workers count | The general trigger is 3 or more employees regularly employed by the same employer in the course of business. Arkansas counts employees who are “regularly employed,” and the statute does not set a separate full-time or part-time cutoff, so part-time workers can count. Confirm how seasonal workers count with the Commission. The threshold is lower in some industries. It is 2 or more employees for building or building-repair work. It is 1 or more employee when the employer is a contractor who subcontracts any part of its contract, and 1 or more employee for a subcontractor. The Commission’s Basic Facts page says employers in high-risk industries such as construction must carry coverage even with fewer than 3 employees. Public employers are covered separately (Ark. Code § 11-9-102). |
| Who is exempt | These are excluded from “employment” under Ark. Code § 11-9-102: domestic servants in or about a private home, agricultural farm labor, people performing services for nonprofit religious, charitable or relief organizations, and qualified commissioned real estate agents. The Commission’s Basic Facts page also lists state employees, but they are not left without coverage; they are covered through a separate public-employee program. Sole proprietors, partners and LLC members are generally not “employees” unless they elect to be covered. Corporate officers are treated as employees unless they are excluded through the carrier. |
| Penalty for going without | Under Ark. Code § 11-9-406, an employer that is required to carry coverage and fails to do so faces a fine of up to 10000, set by the Workers’ Compensation Commission and paid to the Death and Permanent Total Disability Trust Fund, or may be guilty of a Class D felony. The Commission may also assess up to 1000 per day of violation. If the employer still does not get coverage or pay the penalties after the order becomes final, the Commission can ask the Pulaski County Circuit Court, or the circuit court where the employer’s main place of business is located, to bar the employer from employing anyone until it complies. This works like a stop-work order. An uninsured employer may also lose the liability protections the workers’ compensation laws normally give employers. |
| Monopolistic state? | No — private carriers |
In This Arkansas Guide:
Is Workers’ Comp Required in Arkansas?
Yes. Most Arkansas employers must carry workers’ compensation once they regularly employ 3 or more employees, and the threshold is lower in construction and subcontracting.
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 | The general trigger is 3 or more employees regularly employed by the same employer in the course of business. Arkansas counts employees who are “regularly employed,” and the statute does not set a separate full-time or part-time cutoff, so part-time workers can count. Confirm how seasonal workers count with the Commission. The threshold is lower in some industries. It is 2 or more employees for building or building-repair work. It is 1 or more employee when the employer is a contractor who subcontracts any part of its contract, and 1 or more employee for a subcontractor. The Commission’s Basic Facts page says employers in high-risk industries such as construction must carry coverage even with fewer than 3 employees. Public employers are covered separately (Ark. Code § 11-9-102). |
| Who is exempt | These are excluded from “employment” under Ark. Code § 11-9-102: domestic servants in or about a private home, agricultural farm labor, people performing services for nonprofit religious, charitable or relief organizations, and qualified commissioned real estate agents. The Commission’s Basic Facts page also lists state employees, but they are not left without coverage; they are covered through a separate public-employee program. Sole proprietors, partners and LLC members are generally not “employees” unless they elect to be covered. Corporate officers are treated as employees unless they are excluded through the carrier. |
| Owners & officers | Yes, with different routes. Sole proprietors, partners and LLC members who choose not to be covered can apply to the Arkansas Workers’ Compensation Commission for a Certificate of Non-Coverage. They file Form AR-A with a notarized affidavit and a 50 fee. Under Ark. Code § 11-9-402, a current certificate given to a prime contractor creates a conclusive presumption that the holder is not covered and is not the prime contractor’s employee. Corporate officers cannot get a Certificate of Non-Coverage. They are excluded directly through their insurance agent or carrier on the policy. |
| Penalty for going without | Under Ark. Code § 11-9-406, an employer that is required to carry coverage and fails to do so faces a fine of up to 10000, set by the Workers’ Compensation Commission and paid to the Death and Permanent Total Disability Trust Fund, or may be guilty of a Class D felony. The Commission may also assess up to 1000 per day of violation. If the employer still does not get coverage or pay the penalties after the order becomes final, the Commission can ask the Pulaski County Circuit Court, or the circuit court where the employer’s main place of business is located, to bar the employer from employing anyone until it complies. This works like a stop-work order. An uninsured employer may also lose the liability protections the workers’ compensation laws normally give employers. |
| Monopolistic state? | No — buy from private carriers |
How to Get Workers’ Comp Coverage in Arkansas
Buy a policy from a private carrier licensed in Arkansas, or get state approval to self-insure. Employers that cannot find coverage on the open market can use the Arkansas assigned-risk plan, which NCCI administers. Arkansas is an NCCI rating state. Coverage must be paid for entirely by the employer, and no premium may be deducted from employees’ pay.
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: Employers must post a Certificate of Insurance on the premises where both employees and customers can see it. The building and building-repair threshold of 2, and the 1-employee rule for contractors who subcontract and for subcontractors, are stricter than the general threshold of 3. Penalty money goes to the Death and Permanent Total Disability Trust Fund.
For injuries on or after January 1, 2026, Arkansas generally pays up to 953 per week for total disability and 715 per week for permanent partial disability, based on a 2026 state average weekly wage of 1120.68 (AWCC Advisory 2000-1, CY2026 update). Employers should confirm their situation with the Commission and a licensed attorney.
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.
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Frequently Asked Questions
Is workers’ comp required in Arkansas?
Yes. Most Arkansas employers must carry workers’ compensation once they regularly employ 3 or more employees, and the threshold is lower in construction and subcontracting.
What is the penalty for not having workers’ comp in Arkansas?
Under Ark. Code § 11-9-406, an employer that is required to carry coverage and fails to do so faces a fine of up to 10000, set by the Workers’ Compensation Commission and paid to the Death and Permanent Total Disability Trust Fund, or may be guilty of a Class D felony. The Commission may also assess up to 1000 per day of violation.
If the employer still does not get coverage or pay the penalties after the order becomes final, the Commission can ask the Pulaski County Circuit Court, or the circuit court where the employer’s main place of business is located, to bar the employer from employing anyone until it complies. This works like a stop-work order.
An uninsured employer may also lose the liability protections the workers’ compensation laws normally give employers.
Who is exempt from Arkansas workers’ comp?
These are excluded from “employment” under Ark. Code § 11-9-102: domestic servants in or about a private home, agricultural farm labor, people performing services for nonprofit religious, charitable or relief organizations, and qualified commissioned real estate agents. The Commission’s Basic Facts page also lists state employees, but they are not left without coverage; they are covered through a separate public-employee program.
Sole proprietors, partners and LLC members are generally not “employees” unless they elect to be covered. Corporate officers are treated as employees unless they are excluded through the carrier.
Official Arkansas Sources & Resources
- Arkansas Arkansas Workers’ Compensation Commission (AWCC), part of 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/
- 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 October 2026. Rules and penalties change — confirm the current figure with your state workers’-comp board or a licensed agent.
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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.