The Wisconsin Department of Workforce Development outlines the "covered employers" required to carry workers'' compensation insurance in Wisconsin:
- Usually employ three or more full-time or part-time employees. You must get insurance immediately.
- Employ one or more full-time or part-time employees to whom you have paid combined gross wages of $500 or more in any calendar quarter for work done at one or more locations in Wisconsin. You must have insurance by the 10th day of the first month of the next calendar quarter.
- If you are a farmer who employs 6 or more workers on the same day for any 20 days during the calendar year. You must get insurance by the 10th day after the 20th day of employment. A calendar year is January through December.
- Out-of-state employers must have worker''s compensation insurance if they have employees working in Wisconsin. The policy must be with an insurance company licensed to write in Wisconsin and endorsed to name Wisconsin as a covered state in Section 3a of your policy.
The statutory detail governing "covered employers" in Wisconsin can be found in Wis. Stat. 102.04. There are certain circumstances under which an employer may withdraw from coverage or elect coverage, and you should consult both legal counsel and insurance advice with any questions concerning coverage.
In Minnesota, certain categories of employers or entities (e.g. certain closely held corporations, family farms, household workers) may be exempt from mandatory coverage, but those same employers may elect coverage, as well. The same can be said for entities using independent contractors. But, most employers hiring at least one other person should assume they are covered by Chapter 176 of the Minnesota Statutes, and provide workers'' compensation insurance for their worker(s). Again, if you have any questions or concerns regarding workers'' compensation coverage, seek legal counsel and insurance advice. The penalties for failing to have the proper insurance coverage can be significant.
