Most states require that all employees must be protected by state workers’ compensation coverage. Among the factors considered by state laws are whether the employer controls the actions of the worker and whether the work performed by the worker is part of the regular business of the employer. Independent contractors, agricultural employees, domestic employees, and casual employees are usually not covered under workers’ compensation statutes.
Depending upon your state’s laws, failure to carry workers’ compensation coverage may be punishable by fines, civil penalties, criminal penalties, exclusion from public contracts, and/or cease and desist orders.