Workers' Compensation

In every state we serve that requires coverage, part-time employees must be covered, not just full-time staff. If someone is on your payroll, regardless of hours, they need to be covered. (Texas is the one state where coverage is optional, and New Mexico's requirement starts at three employees.)

Not automatically, but be careful. Several states, especially California, apply strict classification tests that can treat contractors as employees for workers' comp. If that happens, your agency is liable for their claims. Misty reviews your staffing model to find this exposure before it becomes a claim.

Operating without required coverage is illegal. You'd be personally responsible for the injured worker's medical bills and lost wages, and could face fines, stop-work orders and, in some states, criminal penalties.

Payroll per $100 is multiplied by the rate for each classification code, then adjusted by your experience modification factor (Ex-Mod). For example, $500,000 of caregiver payroll at an $8.00 rate is a $40,000 base premium for that class, before your Ex-Mod adjusts it up or down.

Premium is estimated at the start of the year from projected payroll. At year end the carrier audits actual payroll: if it was higher, you owe more; if lower, you may get a refund. Fast-growing agencies can face large audit bills, so Misty updates payroll estimates mid-year when staffing grows.

Yes. Keep your Ex-Mod low through claims management, run a return-to-work program with modified duty, report injuries promptly so treatment starts early, and work with a broker who places you with the right carrier from the start.

Report it to your carrier immediately. Don't hold the report while you investigate, because late reporting raises claim costs and can hurt your Ex-Mod. The carrier investigates and decides whether the injury is work-related.

Washington is a monopolistic state, so you pay premiums directly to the Department of Labor & Industries based on hours worked and risk classification. A broker can't place Washington comp, but we can advise on classification accuracy and safety programs that affect your L&I rate, and add stop-gap employer's liability.