Workers' Compensation Laws by State (2026): Benefits and Deadlines

Workers' compensation is a no-fault insurance system that requires most employers in every state to cover injured workers with medical care and partial wage replacement, regardless of who was at fault. In exchange, workers give up the right to sue their employer in civil court. Texas is the only state where private employers can opt out.

What workers' compensation is and how it works

Workers' compensation is a mandatory no-fault insurance system that dates to the early twentieth century. Before it existed, injured workers had to sue their employers in court and prove negligence, which was slow, expensive, and usually unsuccessful. The modern system reflects a grand bargain: employers fund insurance that pays an injured worker's medical bills and replaces a portion of lost wages without any need to prove fault. In exchange, the worker gives up the right to sue the employer for damages in a personal-injury lawsuit. This is called the exclusive-remedy rule, and it applies in every state. The benefit is speed and certainty. The trade-off is that workers' comp benefits are capped and do not include pain-and-suffering damages.

State workers' compensation agencies regulate the system, approve insurance carriers, set benefit formulas, and adjudicate disputes. In four monopolistic-fund states (North Dakota, Ohio, Washington, and Wyoming) employers must buy coverage directly from the state agency rather than a private insurer. Every other state allows coverage through licensed private carriers, approved self-insurance, or group self-insurance trusts.

Is workers' comp required? Texas and the monopolistic states

Workers' compensation is mandatory for nearly all private employers in 49 states and the District of Columbia. The only true exception is Texas, where private employers may legally opt out. Texas employers that opt out ("non-subscribers") lose the protection of the exclusive-remedy rule and cannot use the common-law defenses of contributory negligence, assumption of risk, or the fellow-servant rule if a worker sues them. Under Texas Labor Code Section 406.033, that is a powerful incentive to carry coverage. Public employers in Texas must provide coverage regardless. Approximately 20 percent of Texas private employers are non-subscribers.

Employee-count thresholds vary by state. Most states require coverage starting with the first employee. Others set thresholds of two employees (Virginia), three employees (Arkansas, Georgia, Mississippi, Missouri, New Mexico, North Carolina), four employees (Florida for non-construction, South Carolina), or five employees (Alabama, Mississippi, Tennessee for most industries). Construction and agriculture often carry different thresholds within the same state.

In the four monopolistic-fund states, employers must purchase coverage exclusively from the state fund rather than a private insurer: North Dakota's Workforce Safety and Insurance (WSI), Ohio's Bureau of Workers' Compensation (BWC), Washington's Department of Labor and Industries (L&I), and Wyoming's Department of Workforce Services for extra-hazardous industries.

What benefits you can receive

Workers' compensation typically covers four categories of benefits. First, medical benefits pay 100 percent of reasonable and necessary treatment with no copay or deductible, for as long as the injury requires. Second, wage-replacement benefits (also called indemnity benefits) partially replace lost earnings during a period of disability. Third, permanent disability benefits compensate workers whose injuries cause lasting impairment. Fourth, death and survivor benefits support dependents when a work injury is fatal.

Wage replacement is divided into four disability categories. Temporary total disability (TTD) applies when a worker is completely unable to work during recovery. Temporary partial disability (TPD) applies when a worker can do some work at reduced wages. Permanent partial disability (PPD) compensates for lasting, partial impairment, often calculated by a schedule of body-part values. Permanent total disability (PTD) provides ongoing benefits for workers who cannot return to any work.

The rate of wage replacement varies by state. The most common formula is 66 2/3 percent of your average weekly wage, up to a maximum the state sets each year. Several states use different formulas: Alaska, Iowa, Maine, and Michigan pay 80 percent of spendable (after-tax) weekly earnings; Connecticut pays 75 percent of net weekly wages; Massachusetts and New Hampshire pay 60 percent of gross average weekly wages; New Jersey and Oklahoma pay 70 percent; Rhode Island pays 62 percent; and Washington uses a sliding scale of 60 to 75 percent based on marital and dependent status. Ohio pays 72 percent for the first 12 weeks, then drops to 66 2/3 percent.

Most states impose a waiting period before TTD payments begin, commonly 3 to 7 days, intended to screen out very short absences. Many states make the waiting period retroactive: if your disability lasts long enough (commonly 14 to 21 days), you receive back pay for the waiting days.

Deadlines: reporting and filing by state

Two separate clocks start running the moment you are injured at work. Missing either one can bar your claim entirely.

The first clock is the report deadline: you must notify your employer about the injury within a fixed period. This clock is short in some states. Wyoming requires notice within 72 hours. South Dakota requires written notice within 3 business days. Nevada requires a C-1 notice within 7 days. New Jersey requires notice within 14 days. Many states set it at 30 days. Pennsylvania allows up to 120 days (though reporting within 21 days preserves retroactive benefits from the injury date). A few states are far more forgiving: New Hampshire bars a claim only if notice of injury was not given to the employer within 2 years of the injury. The notice can usually be oral initially, but written confirmation protects you.

The second clock is the claim statute of limitations: the deadline to file a formal workers' compensation claim with the state agency. Nevada has the shortest at 90 days after the accident. West Virginia allows 6 months. Oklahoma allows 1 year (with as little as 6 months from the last benefit). At the longer end, Vermont and Wisconsin allow 6 years and Massachusetts allows 4 years, while Illinois and Pennsylvania allow 3 years. Maine is 2 years from the injury or from the employer's required first report of injury, whichever is later, and stretches to 6 years only from the date of the most recent payment where benefits were actually paid. Missing the claim deadline is generally fatal to the claim, regardless of how serious the injury is.

Some states extend the claim deadline if the employer failed to file a required report (Missouri), or toll it while benefits were voluntarily paid.

Choosing your doctor

The question of who selects the treating physician is one of the most practically important rules in workers' compensation, and it varies sharply from state to state.

In employee-choice states, the injured worker selects any licensed physician from the outset. States following this model include Illinois, Delaware, Hawaii, Louisiana, Vermont, and Wisconsin. Ohio allows the employee to choose any BWC-certified provider. Washington allows choice of any L&I-certified provider.

In employer-directed states, the employer or insurer selects the authorized treating physician, at least initially. Arkansas, Florida, Indiana, Iowa, Kentucky, Maryland, Missouri, New Jersey, and Virginia follow employer-directed models. Florida allows one employee-initiated change of physician after the initial authorized provider.

Many states use a panel or network model. Georgia requires the employer to post a panel of at least six physicians; the employee chooses from the panel and may make one free change. Tennessee requires a panel of three physicians. Pennsylvania requires an employer panel of at least six posted providers for the first 90 days. Colorado requires the employer to provide a list of up to four designated providers; if the employer fails to provide the list within 7 business days, the employee can choose freely. California uses a Medical Provider Network (MPN) system through which the insurer controls the initial 30 days of treatment. Michigan gives the employer the right to direct care for the first 28 days.

Can you sue your employer? The exclusive-remedy rule

The exclusive-remedy rule is the cornerstone of the workers' compensation bargain. It means that filing a workers' comp claim is ordinarily the only civil remedy against your employer for a work-related injury, even if the employer was negligent. You cannot receive both workers' comp benefits and a personal-injury judgment for the same injury.

There are three universally recognized exceptions. First, if the employer committed an intentional act specifically designed to harm the employee, most states permit a tort lawsuit (a minority use a somewhat lower "substantially certain to cause harm" standard). Second, third-party claims are always available: if a negligent party other than the employer contributed to the injury (for example, a defective machine manufacturer, a negligent delivery driver, or a property owner), the worker can sue that third party even while receiving workers' comp benefits. Third, an employer that failed to carry legally required coverage typically forfeits the exclusive-remedy protection and can be sued in tort.

Texas non-subscribers occupy a unique position. Because Texas workers' compensation is voluntary, a private employer that opts out cannot claim the exclusive-remedy shield. A worker injured at a Texas non-subscriber can file a civil lawsuit, and the employer cannot assert contributory negligence, assumption of risk, or the fellow-servant rule as defenses.

How a workers' comp claim and settlement works

The typical workers' compensation claim follows a predictable sequence. Step one: report the injury to your employer immediately, and do so in writing. Step two: seek medical care. In employer-directed or panel states, go to an authorized provider unless the injury is an emergency. Step three: your employer or insurer files a First Report of Injury with the state agency. Step four: the insurer accepts or denies the claim, usually within 14 to 21 days under state regulations. Step five: if the claim is accepted, TTD and medical benefits begin. Step six: when you reach maximum medical improvement (MMI), a permanent impairment rating is assigned for PPD purposes.

If the insurer disputes the claim or a benefit amount, you can request a hearing before the state workers' compensation board or commission. An administrative law judge or hearing officer typically presides. Appeals go to a workers' compensation appeals board and then to state court.

Most workers' compensation claims ultimately resolve by settlement. The two common forms are a compromise-and-release agreement (a lump sum that closes the entire claim, including future medical) and a stipulated-award or structured settlement (a lump sum on indemnity that leaves medical open). Before that conversation, our workers' comp settlement calculator can rough out a possible settlement range from your state's benefit formula. Workers' comp attorneys are usually paid a contingency fee capped by state law (commonly 10 to 25 percent of the recovery), so get a free case evaluation from one on negotiating a settlement with the insurer (attorney advertising). Attorney fees in most states require board or commission approval.

Workers' compensation requirements by state

The table below summarizes coverage requirements, wage-replacement rates, report deadlines, and claim filing deadlines for all 50 states and the District of Columbia. Follow the link in each state's name to the full state guide. All benefit maximums are set annually by each state agency; this table shows rates and formulas only.

The table below covers 9 states in the Northeast.

The table below covers 12 states in the Midwest.

The table below covers 16 states in the South, plus the District of Columbia.

The table below covers 13 states in the West.

This article is general legal information, not legal advice. Workers' compensation rules vary by state, change frequently, and benefit amounts and deadlines depend on the specific facts of each claim. For advice about a specific injury or claim, consult a licensed workers' compensation attorney in your state.

Frequently Asked Questions

Which states require workers' compensation?

Workers' compensation coverage is mandatory in 49 states and the District of Columbia. Texas is the only state where it is optional for private employers. Even in Texas, employers that opt out lose their tort defenses and can be sued by injured workers, so most large employers still carry coverage. Public employers in every state must provide workers' compensation coverage.

Is workers' comp mandatory in every state?

No. Texas is the single exception: private employers in Texas may legally choose not to carry workers' compensation insurance. All other states and the District of Columbia require coverage, though the employee-count threshold that triggers the mandate varies from 1 employee (most states) up to 5 employees (Alabama, Mississippi, Tennessee for most industries).

How much does workers' comp pay?

Wage replacement for temporary total disability is most commonly 66 2/3 percent of your average weekly wage, up to a state maximum that is set each year. A number of states use different formulas: Alaska, Iowa, Maine, and Michigan pay 80 percent of after-tax (spendable) wages; Connecticut pays 75 percent of net wages; Massachusetts and New Hampshire pay 60 percent; New Jersey and Oklahoma pay 70 percent; Rhode Island pays 62 percent; and Washington scales pay between 60 and 75 percent based on marital and dependent status. Because maximums change annually, contact your state workers' compensation agency for the current cap.

How long does workers' comp last?

Temporary total disability benefits continue while you are unable to work and have not yet reached maximum medical improvement (MMI). Once you reach MMI, TTD stops and a permanent impairment rating determines any permanent partial or permanent total disability award. In most states, medical benefits for your accepted injury continue indefinitely even after TTD ends. Some states cap total weeks of TTD (for example, at 500 weeks). Permanent total disability benefits can last a lifetime.

Can I be fired while on workers' comp?

No state allows an employer to fire a worker solely in retaliation for filing a workers' compensation claim. Every state has anti-retaliation protections, and many create a private right of action or a presumption of wrongful discharge if the timing is suspicious. That said, if your employer has a legitimate, non-retaliatory reason (such as a company-wide layoff or documented performance issues that predated the injury), the termination may be lawful. If you believe you were fired because of your claim, consult a workers' compensation attorney quickly, because retaliation claims often have short filing deadlines.

Can I choose my own doctor for a workers' comp injury?

It depends on your state. In employee-choice states such as Illinois, Delaware, Hawaii, Vermont, and Wisconsin, you can see any licensed physician from the start. In employer-directed states such as Arkansas, Florida, Indiana, Iowa, and Kentucky, the employer or insurer selects the authorized treating physician. Many states use a panel or network model: Georgia and Tennessee require the employer to post a panel of physicians for the employee to choose from. Pennsylvania requires an employer panel for the first 90 days. Check with your state workers' compensation agency before choosing a doctor, because unauthorized treatment may not be covered.

How long do I have to file a workers' comp claim?

The statute of limitations to file a formal workers' compensation claim varies widely. Nevada has the shortest deadline: a claim must be filed with the insurer within 90 days after the accident. West Virginia allows 6 months from injury. Many states set a 1-year deadline (Arizona, California, Georgia, Louisiana, Montana, Oklahoma, Oregon, Tennessee, Texas, Utah, Washington, Wyoming, and DC). Two-year deadlines are the most common (Alabama, Alaska, Arkansas, Colorado, Delaware, Florida, Indiana, Kentucky, Maryland, Mississippi, Missouri, Nebraska, New Jersey, New York, North Carolina, Ohio, Rhode Island, South Carolina, South Dakota, and Virginia). At the longer end: Illinois 3 years, Kansas 3 years, Pennsylvania 3 years, Massachusetts 4 years, and Vermont and Wisconsin at 6 years. Maine is a 2-year state by default (2 years from the injury or from the employer's required first report, whichever is later); its 6-year window applies only where benefits were actually paid, and it runs from the most recent payment rather than from the injury.

Can I sue my employer for a work injury?

Generally no. The exclusive-remedy rule means workers' compensation is the only remedy against your employer for most work injuries, even if the employer was careless. Exceptions exist for: (1) intentional harm by the employer, (2) claims against third parties who contributed to the injury (such as equipment manufacturers), and (3) employers that failed to carry required coverage, who generally lose the exclusive-remedy protection and can be sued in tort. Texas non-subscribers (employers who opted out of the system) also lose this protection and can be sued.

What is a monopolistic state fund?

A monopolistic state fund is a state-run insurance program that is the only lawful source of workers' compensation coverage for employers in that state. Private workers' compensation insurers cannot sell coverage there. The four monopolistic-fund states are North Dakota (Workforce Safety and Insurance), Ohio (Bureau of Workers' Compensation), Washington (Department of Labor and Industries), and Wyoming (Department of Workforce Services, for extra-hazardous industries). Employers in those states must buy a policy from the state fund or, in some cases, qualify for approved self-insurance.

What benefits does workers' comp cover?

Workers' compensation typically covers: (1) medical benefits, which pay 100 percent of reasonable and necessary treatment with no copay; (2) temporary total disability (TTD) wage-replacement payments while you cannot work at all; (3) temporary partial disability (TPD) payments if you return to light duty at reduced wages; (4) permanent partial disability (PPD) benefits for lasting impairment, often calculated by a body-part schedule; (5) permanent total disability (PTD) benefits if you can never return to work; and (6) death and survivor benefits for dependents. Vocational rehabilitation assistance is also available in most states.

How long do I have to report a work injury to my employer?

The report deadline is separate from and usually much shorter than the claim-filing deadline. Wyoming requires notice within 72 hours. South Dakota requires written notice within 3 business days. Nevada requires a C-1 notice within 7 days. New Jersey requires notice within 14 days. Tennessee and New Mexico require 15 days. Most states set the employer-notice deadline at 30 days. Pennsylvania allows up to 120 days, and a few states run far longer still: New Hampshire bars a claim only if notice of injury was not given to the employer within 2 years of the injury. Failing to give timely notice can result in reduced benefits or outright denial of the claim, so always report injuries to your employer in writing as soon as possible.