North Dakota 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 North Dakota workers comp requirements in plain English. (Injured instead of hiring? See our North Dakota settlement and claim guides linked below.) All figures are from North Dakota sources, verified as of June 2026.
North Dakota at a Glance
| Required at | 1 employee(s) |
| Which workers count | Coverage is required from the very first employee. All workers count — full-time, part-time, seasonal, and occasional employees must be covered before they begin working; there is no minimum head-count exemption and no special construction-only rule because the one-employee mandate already applies to every industry. |
| Who is exempt | Sole proprietors, partners, LLC members, and corporate officers are not automatically counted/covered (they may elect coverage). Most agricultural/farm labor is generally exempt unless specific conditions apply (e.g., certain custom operators). Federal and railroad employees are covered under separate federal systems, and certain casual labor falls outside mandatory coverage. |
| Penalty for going without | WSI can issue a Cease & Desist (stop-work) order for operating uninsured, and the employer may be assessed a 10000 penalty plus 100 per day for each day the violation continues. The employer must also pay back premium for the uninsured period, may be liable for the actual cost and reserves of any claim arising while uninsured, and loses immunity — an injured worker may sue the uninsured employer directly for damages. |
| Monopolistic state? | Yes — must buy from the state fund |
In This North Dakota Guide:
Is Workers’ Comp Required in North Dakota?
Yes — North Dakota requires nearly all employers to carry workers’ compensation coverage through the state fund (WSI) before any employee begins working, regardless of how many employees they have.
North Dakota Workers’ Comp Requirements at a Glance
Here are the exact North Dakota workers comp requirements every employer should know:
| Employees that trigger the mandate | 1 |
| Which workers count | Coverage is required from the very first employee. All workers count — full-time, part-time, seasonal, and occasional employees must be covered before they begin working; there is no minimum head-count exemption and no special construction-only rule because the one-employee mandate already applies to every industry. |
| Who is exempt | Sole proprietors, partners, LLC members, and corporate officers are not automatically counted/covered (they may elect coverage). Most agricultural/farm labor is generally exempt unless specific conditions apply (e.g., certain custom operators). Federal and railroad employees are covered under separate federal systems, and certain casual labor falls outside mandatory coverage. |
| Owners & officers | Yes — sole proprietors, partners, corporate officers, and LLC members are excluded from mandatory coverage but may elect to be included by purchasing elective/optional coverage through WSI; premium is based on the appropriate class rate multiplied by the maximum taxable payroll cap, and coverage is effective upon WSI approval of the signed application/elective coverage contract. |
| Penalty for going without | WSI can issue a Cease & Desist (stop-work) order for operating uninsured, and the employer may be assessed a 10000 penalty plus 100 per day for each day the violation continues. The employer must also pay back premium for the uninsured period, may be liable for the actual cost and reserves of any claim arising while uninsured, and loses immunity — an injured worker may sue the uninsured employer directly for damages. |
| Monopolistic state? | Yes — must buy from the state fund |
| State fund | Yes — North Dakota Workforce Safety & Insurance (WSI), the exclusive state fund. |
How to Get Workers’ Comp Coverage in North Dakota
Coverage must be purchased from the state fund, WSI — North Dakota law does not allow private insurers to underwrite workers’ compensation in the state, so there is no private market, assigned-risk pool, or NCCI placement. Employers apply to WSI before hiring their first employee.
What Workers’ Comp Covers in North Dakota
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 North Dakota 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 North Dakota
The most common way employers get the North Dakota 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 North Dakota 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 North Dakota workers’-comp rules: WSI is the sole, monopolistic provider and administrator of workers’ comp in North Dakota — no private coverage is allowed.
Out-of-state employers must obtain ND coverage when they have “significant contacts” with the state, defined as any employee earning (or expected to earn) 25% or more of their gross annual wage for services in North Dakota, or 25% or more of the employer’s gross annual payroll being for services rendered in North Dakota. Employers must apply before hiring their first employee.
Understanding North Dakota Workers Comp Requirements
The North Dakota workers comp requirements exist so injured employees get care and lost wages without having to sue. For most employers, the North Dakota workers comp requirements come down to one number: the employee count that triggers the mandate, shown in the table above.
📨 Get Free Workers Comp Guides Alerts
Free · No spam · Unsubscribe anytime
Once you hit that count, North Dakota workers comp requirements apply whether you planned for them or not, and the penalty for going without is real. If any part of the North Dakota 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 North Dakota 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 North Dakota?
Yes — North Dakota requires nearly all employers to carry workers’ compensation coverage through the state fund (WSI) before any employee begins working, regardless of how many employees they have.
What is the penalty for not having workers’ comp in North Dakota?
WSI can issue a Cease & Desist (stop-work) order for operating uninsured, and the employer may be assessed a 10000 penalty plus 100 per day for each day the violation continues.
The employer must also pay back premium for the uninsured period, may be liable for the actual cost and reserves of any claim arising while uninsured, and loses immunity — an injured worker may sue the uninsured employer directly for damages.
Can a North Dakota employer buy workers’ comp from a private insurer?
No. North Dakota is a monopolistic state, so employers must buy workers’ compensation from the state fund rather than a private carrier. Some add separate stop-gap/employers-liability coverage privately.
Official North Dakota Sources & Resources
- North Dakota North Dakota Workforce Safety & Insurance (WSI): https://www.workforcesafety.com
- North Dakota Workers’ Comp Statute: https://ndlegis.gov/cencode/t65.html
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
These North Dakota 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 North Dakota Workers’ Comp Guides
- North Dakota Workers’ Comp Settlements
- How to File a North Dakota 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.