States that do not require workers comp are fewer than most people expect. This page shows, for all 50 states, how many employees a business can have before coverage is required and who may elect out. The answer varies because each state writes its own workers’ comp law, so the headcount, the way part-time workers are counted and the treatment of owners all change from state to state.
When people search for states that do not require workers comp, they usually mean Texas, where any private employer may choose not to carry coverage, but the full picture has more detail than that. Every row in the table comes from that state’s own verified guide on this site, which cites the statute and names the agency.
Click any state below for its full guide, with the statute citation, the agency contact and the figures behind each row.
Quick Facts — States that do not require workers comp (2026)
- Coverage from the first employee: Alaska, California, New York, Pennsylvania and Ohio are among the states that require coverage once a business hires its first employee.
- The highest headcount is 5: Alabama, Mississippi, Missouri and Tennessee set the line at 5 employees. In Missouri and Tennessee, that number applies to non-construction employers.
- 35 of 50 states share the most common rule: They require coverage at 1 employee. Seven more set it at 3 (Arkansas, Georgia, Michigan, New Mexico, North Carolina, Virginia and Wisconsin), and Florida and South Carolina set it at 4.
- The outliers are Texas and South Dakota: Of all the states that do not require workers comp at a set headcount, these are the only two the table lists as NONE. In Texas, any private employer may choose not to carry coverage at all.
- Industry and counting rules change the answer: Florida’s threshold of 4 applies to non-construction employers and counts full-time and part-time workers alike. Kansas uses a payroll test instead of a headcount test.
- The ceiling is the same everywhere: No state in the table sets the coverage threshold above 5 employees, so a business with 5 or more workers is required to carry coverage in every state except Texas and South Dakota.
- Free help is one call away: Each state guide on this site gives the statute citation and the contact for that state’s workers’ comp agency, which is the place to confirm your situation.
States that do not require workers comp — All 50 States Compared
The states that do not require workers comp table below shows the two figures that frame the question in every state. Here is what each column means:
Coverage Required At = the employee count at which that state makes coverage mandatory, from the state’s exemption guide. Texas is the one state where private employers may opt out entirely.
Who May Elect Out = the owners that state lets exclude themselves (sole proprietors, partners, LLC members, officers). Employees can never be exempted by an owner’s election.
| State | Coverage Required At | Who May Elect Out |
|---|---|---|
| Alabama | 5 (Ala. Code §25-5-50(a): the Act does not apply to an employer that… | Corporate officers and individual LLC members may elect to exclude themselves (§25-5-50… |
| Alaska | 1 (Alaska requires coverage from the first employee. The Division’s… | Alaska has no “opt out” for employers with employees, but some owners are not counted as… |
| Arizona | 1 | Sole proprietors with no employees are not required to cover themselves (they may choose… |
| Arkansas | 3 (Ark. Code Ann. § 11-9-102(11)). The number is lower in some… | See guide |
| California | 1 | Sole proprietors with no employees are not required to cover themselves and can choose to… |
| Colorado | 1 | Sole proprietors and partners are not counted as employees, so they need no coverage for… |
| Connecticut | 1 | Corporate officers and LLC members can each choose to be excluded by filing Form 6B.… |
| Delaware | 1 | Coverage is required once an employer has 1 employee. Separately, owners may elect out as… |
| Florida | 4 for non-construction employers (full-time and part-time counted… | Non-construction: corporate officers listed in the Florida Department of State (Sunbiz)… |
| Georgia | 3 | Corporate officers and LLC members may elect out of coverage, up to 5 officers per… |
| Hawaii | 1 | In Hawaii, owners are not covered by default; their exclusion comes from the statute, not… |
| Idaho | 1 | Idaho has no general “opt-out” filing for owners. Certain owners are simply outside the… |
| Illinois | 1 (Illinois generally requires coverage once an employer has even one… | See guide |
| Indiana | 1 | By default, sole proprietors, partners, and LLC members/managers are not “employees”… |
| Iowa | 1 (Iowa Code 87.1 and 87.14A require every employer covered by… | Proprietors (sole proprietors), LLC members, limited liability partners and partners… |
| Kansas | 1 (Kansas uses a payroll test, not a headcount test. An employer must… | Sole proprietors, partners and LLC members are left out of coverage automatically. Each… |
| Kentucky | 1 | Sole proprietors, partners and LLC members are not covered unless they choose to be.… |
| Louisiana | 1 | See guide |
| Maine | 1 | Sole proprietors, partners and LLC members are generally not “employees” unless they… |
| Maryland | 1 | Sole proprietors and partners are not covered by default, so they don’t need to file… |
| Massachusetts | 1 | Sole proprietors, partners (including LLP partners) and LLC members are not required to… |
| Michigan | 3. Under MCL 418.115, private employers (other than agricultural… | Under MCL 418.161 and the Workers’ Disability Compensation Agency’s employer FAQs, a sole… |
| Minnesota | 1 | Sole proprietors, partners, some executive officers and some LLC managers are excluded… |
| Mississippi | 5 | Under Miss. Code Ann. § 71-3-5, an employer may elect to be exempt from the Workers’… |
| Missouri | 5 (non-construction employers must carry coverage at 5 or more… | Sole proprietors and partners are not required to cover themselves but may choose to… |
| Montana | 1 | Sole proprietors, working members of a partnership, working members of a limited… |
| Nebraska | 1 | Nebraska works the opposite way from most states: owners are excluded automatically and… |
| Nevada | 1 | See guide |
| New Hampshire | 1 | Sole proprietors, partners and self-employed people with no employees don’t have to cover… |
| New Jersey | 1 | Sole proprietors, partners (including limited liability partners) and LLC members are not… |
| New Mexico | 3 (NMSA 1978 §52-1-6(A) generally requires coverage for employers of… | Under §52-1-7, two groups may choose not to be covered. The first is a sole proprietor.… |
| New York | 1 | A business with no employees does not have to carry coverage. That covers sole… |
| North Carolina | 3 | Corporate executive officers may be excluded from coverage by having the corporation… |
| North Dakota | 1 | See guide |
| Ohio | 1 | Ohio works the other way round from most states. Business owners in these groups are left… |
| Oklahoma | 1 (an employer with 1 or more employees who count as “employees”… | Under 85A O.S. §2, these people are not counted as “employees” unless they choose to be… |
| Oregon | 1 | Oregon does not use an exemption form. ORS 656.027 lists owners who are “nonsubject”… |
| Pennsylvania | 1 | Sole proprietors and partners are not employees under the Pennsylvania Act, so they are… |
| Rhode Island | 1 | See guide |
| South Carolina | 4 (an employer must have coverage once it regularly employs 4 or more… | See guide |
| South Dakota | NONE. On its workers’ comp page, the South Dakota Department of Labor… | Sole proprietors and partners are not “employees” under SDCL 62-1-3, so they are outside… |
| Tennessee | 5 (non-construction employers with 5 or more employees must carry… | Owners in non-construction work are generally outside coverage unless they opt in: sole… |
| Texas | NONE. Texas is the only state where workers’ comp is optional for… | Two separate rules apply. (1) Any private employer may choose not to carry coverage at… |
| Utah | 1 | Sole proprietors and partners are generally not counted as employees unless the business… |
| Vermont | 1 | Sole proprietors and partners of unincorporated businesses are not covered and don’t have… |
| Virginia | 3 | Coverage is required once an employer regularly employs 3 or more part-time or full-time… |
| Washington | 1 | Under RCW 51.12.020, Washington leaves certain owners out of mandatory coverage… |
| West Virginia | 1 | See guide |
| Wisconsin | 3 (coverage is required from the day the 3rd full- or part-time… | Sole proprietors, partners and LLC members are not employees under the Act, so they are… |
| Wyoming | 1 (coverage is required from the first employee, but only in the… | In Wyoming, owners start out excluded and must opt in to be covered; they do not file to… |
Each cell was taken from that state’s own verified guide on this site. Where a cell says “see guide,” the state’s rule needs more than one line, and the guide covers it in full.
States that do not require workers comp: What Every State Shares
Even states that do not require workers comp for very small businesses follow the same basic structure. The law sets a number of employees, and once a business reaches it, coverage is mandatory. It then lists the people who do not count toward that number or who may step outside it.
Owners are the usual example. In Arizona and California, sole proprietors with no employees do not have to cover themselves. In Alabama, Connecticut and Georgia, corporate officers or LLC members can choose to be excluded, and Georgia allows up to 5 officers per company to do so.
A few states start from the opposite direction. In Nebraska, Ohio and Wyoming, owners are excluded automatically and must opt in if they want to be covered. If you are an injured worker, the main point is simple. The threshold counts employees, not owners, so if your employer has reached the number your state sets, coverage should be in place for you.
Several states, including South Carolina and Virginia, look at how many workers a business regularly employs, not how many happen to be on the payroll on one particular day.
States that do not require workers comp: What Makes It Different
The first thing that changes the answer is the statute itself. Arkansas sets its number in Ark. Code Ann. § 11-9-102(11), Michigan in MCL 418.115 and New Mexico in NMSA 1978 §52-1-6(A). Each law defines “employee” in its own way, so two businesses of the same size can be treated differently in neighboring states.
Agency practice matters too. South Dakota’s position comes from the Department of Labor’s own workers’ comp page, and Michigan’s owner rules are explained in the Workers’ Disability Compensation Agency’s employer FAQs. Anyone comparing states that do not require workers comp should read both the law and the agency’s explanation of it.
Your own choices are the third factor. Owners in many states can file to be excluded. Connecticut uses Form 6B, for example. In other states, such as Oregon, there is no form because certain owners are simply outside the law. Construction work often follows stricter rules than other industries, as Florida, Missouri and Tennessee show.
Part-time workers count toward the total in states such as Florida, Virginia and Wisconsin. Kansas does not count heads at all and looks at payroll instead. Those details often matter more than the headline number.
Count your workers the way your state counts them before you assume you are exempt. Check whether part-time workers count, whether construction work follows a different rule and whether owners are included, using your state’s guide on this site.
States that do not require workers comp: What to Do Next
Start by finding your state in the table and opening its guide. If you are an employer, count your workers using that state’s rules. If you are an owner who wants to be excluded, check whether your state requires a filing, as Connecticut does, or leaves you out automatically, as Nebraska and Ohio do.
Remember that the list of states that do not require workers comp is very short, and Texas is the clearest case. Everywhere else, a growing business will cross the line at some point, often with its first hire.
If you are an injured worker, ask your employer for the name of its workers’ comp insurer, then check your state’s guide to see whether your employer should have coverage. Each state page gives the statute citation and the contact for the state agency, so you can confirm the rule directly and ask for free help.
Before relying on any list of states that do not require workers comp, check your own state’s guide, because thresholds, owner elections and industry rules are set state by state.
Find Your States that do not require workers comp
Ready to see the states that do not require workers comp where you live? Click any state name in the table above, or browse the full category below.
Browse All States that do not require workers comp Guides →
Related Master Guides
Official Sources
- U.S. Dept. of Labor, State Workers’ Compensation Officials: www.dol.gov — the agency in every state
- State exemption statutes and forms: the owner-election rules and official forms, linked inside each state guide
States that do not require workers comp data compiled from each state’s verified guide on this site, which cites the statute and the agency. Figures change by statute and by year, so each row links to the page that explains it. Last reviewed October 2026.
Disclaimer: This page is for general informational purposes only and is not legal advice. No attorney-client relationship is created by reading it. Rules, deadlines and figures vary by state and change over time. For advice about your specific situation, consult a licensed attorney or your state workers’ compensation agency.