Idaho 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 Idaho workers comp requirements in plain English. (Injured instead of hiring? See our Idaho settlement and claim guides linked below.) All figures are from Idaho sources, verified as of October 2026.
Idaho at a Glance
| Required at | 1 employee(s) |
| Which workers count | Every employee counts toward the threshold: full-time, part-time, seasonal and occasional. Construction gets no separate rule because the mandate already starts at the first employee in every industry. According to the Idaho Industrial Commission, the legislature repealed the general agricultural-pursuits exemption in 1996, so farm and ranch employees generally count too. |
| Who is exempt | Under Idaho Code 72-212, exempt work includes: the owner of a sole proprietorship; working members of a partnership or LLC; corporate officers who own at least 10 percent of the voting stock and are also directors if the corporation has directors; household domestic service; casual employment (irregular work not related to the employer’s business); outworkers; family members living in a sole proprietor’s household; family members of a sole proprietor who live outside the household and file a written exemption declaration with the Commission; real estate brokers and salespersons paid only by commission; pilots applying fertilizer or pesticide to crops from aircraft (conditions apply); officials at secondary-school athletic contests; volunteer ski patrollers; and employment covered by federal workers’ comp laws. |
| Penalty for going without | Operating without required coverage is a misdemeanor under Idaho Code 72-319. Since HB 64 took effect on July 1, 2025, this explicitly includes individual liability for any corporate officer or employee, or LLC member, manager or employee, who had authority to secure coverage and failed to do so. The civil penalty is 2 per employee per day or 25 per day, whichever is greater, for up to 3 consecutive years. If a worker is injured while the employer is uninsured, the employer may be personally liable for all medical and wage-loss benefits, plus a penalty of 10 percent of those benefits and the injured worker’s attorney fees. The Industrial Commission can also ask a district court for an injunction that stops the business from operating while it is out of compliance. |
| Monopolistic state? | No — private carriers |
In This Idaho Guide:
Is Workers’ Comp Required in Idaho?
Yes. Idaho generally requires workers’ comp for any employer with one or more full-time, part-time, seasonal or occasional employees unless the work is specifically exempt, and the coverage has to be in place before the first employee is hired.
Idaho Workers’ Comp Requirements at a Glance
Here are the exact Idaho workers comp requirements every employer should know:
| Employees that trigger the mandate | 1 |
| Which workers count | Every employee counts toward the threshold: full-time, part-time, seasonal and occasional. Construction gets no separate rule because the mandate already starts at the first employee in every industry. According to the Idaho Industrial Commission, the legislature repealed the general agricultural-pursuits exemption in 1996, so farm and ranch employees generally count too. |
| Who is exempt | Under Idaho Code 72-212, exempt work includes: the owner of a sole proprietorship; working members of a partnership or LLC; corporate officers who own at least 10 percent of the voting stock and are also directors if the corporation has directors; household domestic service; casual employment (irregular work not related to the employer’s business); outworkers; family members living in a sole proprietor’s household; family members of a sole proprietor who live outside the household and file a written exemption declaration with the Commission; real estate brokers and salespersons paid only by commission; pilots applying fertilizer or pesticide to crops from aircraft (conditions apply); officials at secondary-school athletic contests; volunteer ski patrollers; and employment covered by federal workers’ comp laws. |
| Owners & officers | Qualifying owners are exempt automatically and do not have to file anything to exclude themselves. This covers sole proprietors, working partners and LLC members, and corporate officers who own at least 10 percent of the voting stock and also serve as directors if the corporation has directors. Exempt owners and officers may choose to be covered under Idaho Code 72-213. Corporate officers who do not meet the 10 percent ownership and director test count as covered employees. |
| Penalty for going without | Operating without required coverage is a misdemeanor under Idaho Code 72-319. Since HB 64 took effect on July 1, 2025, this explicitly includes individual liability for any corporate officer or employee, or LLC member, manager or employee, who had authority to secure coverage and failed to do so. The civil penalty is 2 per employee per day or 25 per day, whichever is greater, for up to 3 consecutive years. If a worker is injured while the employer is uninsured, the employer may be personally liable for all medical and wage-loss benefits, plus a penalty of 10 percent of those benefits and the injured worker’s attorney fees. The Industrial Commission can also ask a district court for an injunction that stops the business from operating while it is out of compliance. |
| Monopolistic state? | No — buy from private carriers |
| State fund | YES. Idaho State Insurance Fund, which competes with private insurers. |
How to Get Workers’ Comp Coverage in Idaho
An Idaho employer can buy a policy from a private carrier licensed in Idaho, buy from the Idaho State Insurance Fund, or self-insure with Industrial Commission approval if it meets the financial requirements. Confirm current options with the Idaho Industrial Commission and the Idaho Department of Insurance.
Private market: YES
What Workers’ Comp Covers in Idaho
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 Idaho 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 Idaho
The most common way employers get the Idaho 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 Idaho 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 Idaho workers’-comp rules: HB 64 (2025), effective July 1, 2025, made LLC members and managers individually exposed to misdemeanor liability for failing to secure coverage, the same as corporate officers. Workers in exempt categories can be brought under coverage by election under Idaho Code 72-213.
Understanding Idaho Workers Comp Requirements
The Idaho workers comp requirements exist so injured employees get care and lost wages without having to sue. For most employers, the Idaho 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, Idaho workers comp requirements apply whether you planned for them or not, and the penalty for going without is real.
If any part of the Idaho workers comp requirements is unclear, your state board can confirm the threshold, the exemptions, and how to get covered.
📨 Get Free Workers Comp Guides Alerts
Free · No spam · Unsubscribe anytime
Need to get covered? If you are an employer in Idaho 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 Idaho?
Yes. Idaho generally requires workers’ comp for any employer with one or more full-time, part-time, seasonal or occasional employees unless the work is specifically exempt, and the coverage has to be in place before the first employee is hired.
What is the penalty for not having workers’ comp in Idaho?
Operating without required coverage is a misdemeanor under Idaho Code 72-319. Since HB 64 took effect on July 1, 2025, this explicitly includes individual liability for any corporate officer or employee, or LLC member, manager or employee, who had authority to secure coverage and failed to do so. The civil penalty is 2 per employee per day or 25 per day, whichever is greater, for up to 3 consecutive years.
If a worker is injured while the employer is uninsured, the employer may be personally liable for all medical and wage-loss benefits, plus a penalty of 10 percent of those benefits and the injured worker’s attorney fees. The Industrial Commission can also ask a district court for an injunction that stops the business from operating while it is out of compliance.
Who is exempt from Idaho workers’ comp?
Under Idaho Code 72-212, exempt work includes: the owner of a sole proprietorship; working members of a partnership or LLC; corporate officers who own at least 10 percent of the voting stock and are also directors if the corporation has directors; household domestic service; casual employment (irregular work not related to the employer’s business); outworkers; family members living in a sole proprietor’s household;
family members of a sole proprietor who live outside the household and file a written exemption declaration with the Commission; real estate brokers and salespersons paid only by commission; pilots applying fertilizer or pesticide to crops from aircraft (conditions apply); officials at secondary-school athletic contests; volunteer ski patrollers; and employment covered by federal workers’ comp laws.
Official Idaho Sources & Resources
- Idaho Idaho Industrial Commission (its Employer Compliance Department handles coverage enforcement): https://iic.idaho.gov/
- Idaho Workers’ Comp Statute: https://legislature.idaho.gov/statutesrules/idstat/title72/
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
These Idaho 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.
You May Also Like
More Idaho Workers’ Comp Guides
- Idaho Workers’ Comp Settlements
- How to File an Idaho 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.