Washington 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 Washington workers comp requirements in plain English. (Injured instead of hiring? See our Washington settlement and claim guides linked below.) All figures are from Washington sources, verified as of June 2026.
Washington at a Glance
| Required at | 1 employee(s) |
| Which workers count | Coverage is required for any employer with one or more employees, including full-time, part-time, temporary, and seasonal workers; there is no employee-count floor and no separate construction-only rule because the one-employee mandate already applies to all industries. |
| Who is exempt | Sole proprietors, partners, and LLC members are excluded by statute (and may elect coverage); qualifying corporate officers can be exempt if they are a bona fide officer, on the board of directors, a shareholder, exercise substantial control of daily management, and whose primary duties do not include manual labor. Domestic workers in a private home with fewer than two regularly employed workers, certain casual labor, and some sole-proprietor/owner situations are excluded. Federal employees, longshore/maritime workers, and railroad workers fall under federal systems rather than L&I. |
| Penalty for going without | Up to 250 per day for each day required coverage is not in place, capped at 50000; L&I may issue a stop-work order, and violating a stop-work order can be fined up to 1000 per day. If a worker is injured while the employer is uninsured, the employer faces a penalty of up to twice the premiums owed or 1000 (whichever is greater) plus a claim-cost penalty of up to 100 percent of the cost of the claim. |
| Monopolistic state? | Yes — must buy from the state fund |
In This Washington Guide:
Is Workers’ Comp Required in Washington?
Yes — workers’ compensation coverage is required of virtually every Washington employer from the very first employee, and (because Washington is monopolistic) it must be obtained through the state fund (L&I) unless the employer is certified self-insured.
Washington Workers’ Comp Requirements at a Glance
Here are the exact Washington workers comp requirements every employer should know:
| Employees that trigger the mandate | 1 |
| Which workers count | Coverage is required for any employer with one or more employees, including full-time, part-time, temporary, and seasonal workers; there is no employee-count floor and no separate construction-only rule because the one-employee mandate already applies to all industries. |
| Who is exempt | Sole proprietors, partners, and LLC members are excluded by statute (and may elect coverage); qualifying corporate officers can be exempt if they are a bona fide officer, on the board of directors, a shareholder, exercise substantial control of daily management, and whose primary duties do not include manual labor. Domestic workers in a private home with fewer than two regularly employed workers, certain casual labor, and some sole-proprietor/owner situations are excluded. Federal employees, longshore/maritime workers, and railroad workers fall under federal systems rather than L&I. |
| Owners & officers | Yes — sole proprietors, partners, LLC members, and qualifying corporate officers are excluded by default and not counted; they may add themselves voluntarily by filing L&I’s Application for Elective Coverage (Form F213-042-000) or by contacting L&I Employer Services (360-902-4817). |
| Penalty for going without | Up to 250 per day for each day required coverage is not in place, capped at 50000; L&I may issue a stop-work order, and violating a stop-work order can be fined up to 1000 per day. If a worker is injured while the employer is uninsured, the employer faces a penalty of up to twice the premiums owed or 1000 (whichever is greater) plus a claim-cost penalty of up to 100 percent of the cost of the claim. |
| Monopolistic state? | Yes — must buy from the state fund |
| State fund | Yes — the Washington State Fund administered by the Department of Labor & Industries (L&I) |
How to Get Workers’ Comp Coverage in Washington
Employers open a workers’ comp account with L&I and buy coverage through the State Fund; large qualifying employers (e.g., at least three years in business, written accident-prevention program, and roughly 25 million net worth or 50 million revenue) may instead apply to L&I to become certified self-insured. There is no private-carrier or NCCI/assigned-risk market in Washington.
What Workers’ Comp Covers in Washington
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 Washington 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 Washington
The most common way employers get the Washington 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 Washington 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 Washington workers’-comp rules: Washington is one of only four monopolistic state-fund states (with North Dakota, Ohio, and Wyoming) where private workers’ comp insurance is prohibited. Unlike most states, Washington workers’ comp premiums are based on hours worked (not payroll) and a portion may legally be deducted from employee wages for the Medical Aid and Supplemental Pension funds. Coverage is reported and paid through L&I quarterly reports.
Understanding Washington Workers Comp Requirements
The Washington workers comp requirements exist so injured employees get care and lost wages without having to sue. For most employers, the Washington 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, Washington workers comp requirements apply whether you planned for them or not, and the penalty for going without is real.
📨 Get Free Workers Comp Guides Alerts
Free · No spam · Unsubscribe anytime
If any part of the Washington 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 Washington 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 Washington?
Yes — workers’ compensation coverage is required of virtually every Washington employer from the very first employee, and (because Washington is monopolistic) it must be obtained through the state fund (L&I) unless the employer is certified self-insured.
What is the penalty for not having workers’ comp in Washington?
Up to 250 per day for each day required coverage is not in place, capped at 50000; L&I may issue a stop-work order, and violating a stop-work order can be fined up to 1000 per day.
If a worker is injured while the employer is uninsured, the employer faces a penalty of up to twice the premiums owed or 1000 (whichever is greater) plus a claim-cost penalty of up to 100 percent of the cost of the claim.
Can a Washington employer buy workers’ comp from a private insurer?
No. Washington 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 Washington Sources & Resources
- Washington Washington State Department of Labor & Industries (L&I): https://lni.wa.gov/insurance/
- Washington Workers’ Comp Statute: https://app.leg.wa.gov/rcw/default.aspx?Cite=51
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
These Washington 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 Washington Workers’ Comp Guides
- Washington Workers’ Comp Settlements
- How to File a Washington 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.