Workers' Compensation is a form of insurance offered by many employers. It covers employee wages and medical benefits if an employee is injured or becomes ill performing job duties. If you want to compare options or find a plan, see Workers Compensation Insurance.
In exchange for these benefits, employees generally give up the right to sue their employer for negligence except in limited situations. As an employee, you may be eligible for Workers' Compensation benefits in several common situations.
Workers' Compensation Eligibility Requirements
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The company for whom you work must carry Workers' Compensation insurance or be required by law to do so.
State laws vary, and an employer may be exempt from carrying Workers' Compensation depending on the number of employees, business type, and the work performed. Examples of possible exemptions include very small employers and certain charitable organizations.
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You must be a legitimate employee.
Independent contractors and volunteers are usually not eligible for Workers' Compensation benefits. Consultants, freelancers, and similar independent workers are common examples of classifications that may be ineligible, so confirm your employment status if you have questions.
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The injury or illness must be work-related.
Injuries or illnesses that arise from job duties—like lifting injuries, repetitive-strain conditions, or exposure to hazardous substances—are typically covered. Injuries that occur off the clock or while performing non-work activities are generally not covered unless directly related to work duties.
Special Rules for Certain Workers
- Domestic workers in private homes, such as housekeepers, landscapers, and babysitters
- Casual or seasonal workers who work intermittently or only during certain times of year
- Agricultural and farm workers
- Leased or loaned workers: coverage may depend on the state laws where the employer or the worksite is located
- Undocumented workers: state rules vary, and some states provide coverage while others do not
Workers' Compensation is important coverage. To review options for business policies, see Business Workers Compensation Insurance or visit Workers' Compensation (Work Comp) for more information. If you're still unsure about eligibility, talk to an agent.
Frequently Asked Questions
How can I tell if my employer carries Workers' Compensation?
Ask your human resources department or check your state workers' compensation board website to confirm whether your employer is covered.
Are independent contractors covered by Workers' Compensation?
Generally no; independent contractors are usually ineligible, but coverage can depend on your classification and state rules.
What if I am injured while running an errand for work?
If the errand is a work-related task performed at your employer's direction, the injury is often covered; off-duty activities are typically not covered.
Do undocumented workers qualify for benefits?
Eligibility varies by state; some states extend Workers' Compensation to undocumented workers while others do not.