Most Connecticut employers are required to carry workers’ compensation insurance, but keeping track of all the requirements can be time-consuming. In this guide, we’ll cover the basics of who should receive coverage and how businesses can obtain a policy.
More from our experts
What you’ll learn
What you’ll learn
Workers’ compensation protects Connecticut employers and employees
Workers’ compensation insurance helps protect businesses and employees from financial loss when an employee suffers an illness or injury while at work. For employers, it can also provide peace of mind. That’s because, in most cases, it offers the company protection from legal claims that might arise if an employee gets sick or injured while working.
Workers’ comp Connecticut: Which employers are required to carry it?
All businesses with one (1) or more employees, whether part-time or full-time, are legally required to have workers’ compensation insurance.
Do sole proprietors need workers’ comp in Connecticut?
Sole proprietors, multiple-member LLCs, corporate officers, and partnerships may elect not to carry workers’ compensation insurance for themselves. However, they must always provide coverage for their employees. Also, they may voluntarily elect coverage to protect themselves in the event of an injury, especially when performing manual labour or contracting work.
Independent contractors are evaluated under the “right to control” employment test used by the Connecticut Workers’ Compensation Commission.
If you’re trying to sort out who’s required to carry coverage, the table below gives you an easy, at-a-glance view of Connecticut’s workers’ comp rules.
| Category | Is coverage required? | What to know |
| Businesses with 1+ employees | Yes | Applies to full and part-time employees. |
| Sole proprietors, partners, corporate officers, LLC members | Optional for themselves | May choose not to cover themselves, but must cover any employees. |
| Volunteers | Generally no | Coverage may apply if required by law or specific circumstances. |
| Household or domestic employees | Yes, if working more than 26 hours/week | Required under Connecticut law. |
| Independent contractors | No, unless misclassified | Businesses must ensure proper classification to avoid penalties. |
| Employers unable to get private coverage | Yes | Must obtain insurance through the Connecticut Insurance Department. |
Who oversees workers’ comp rules in Connecticut?
Connecticut’s Workers’ Compensation Commission (WCC) administers the workers’ compensation laws in the state. Their goal is to ensure that workers who are injured on the job receive prompt payment of wage loss benefits and appropriate medical treatment. To this end, the Commission approves voluntary agreements, adjudicates disputes, issues findings and awards, hears and rules on appeals, and closes out pending cases through full and final stipulated agreements.
How do employers purchase workers’ comp in Connecticut?
Business owners can purchase workers’ compensation insurance from private insurance carriers and usually can choose from different types of plans.
Traditional plans
Premiums for these types of plans get calculated based on an estimate of a company’s annual gross wages. Once the insurer calculates the premium, employers pay an upfront lump sum (which sometimes comes with quarterly or annual premiums) for the rest of the year.
Pay-as-you-go plans
On the other hand, pay-as-you-go premiums are calculated during payroll runs so businesses are paying exact amounts for their coverage (and not a number based on an estimate).
In the event your business is unable to secure coverage through a private insurer, it is possible to obtain coverage through the Connecticut Insurance Department.
What are the penalties for Connecticut employers who fail to furnish workers’ comp insurance?
There can be some less-than-desirable outcomes for companies that do not carry coverage in the state of Connecticut. If non-compliant, the Connecticut Workers’ Compensation Commission will issue a stop-work order until your insurance is paid and will impose a fine of $250 and up per worker per day (for anyone who is not covered), according to Section 31-288 of the Connecticut’s Workers’ Compensation Act.
Notice to employees
In addition to adopting a workers’ comp policy, employers must complete the Notice to Employees and post it in a conspicuous place that’s easy for workers to see, in each workplace that they have in the state of Connecticut.
What should I do if an employee gets hurt or contracts an illness?
Should an employee experience an incident while on the job, the first thing they need to do is communicate this information to you or a supervisor (and immediately seek medical treatment). Employees should also file a 30C Claim Form – Notice of Claim for Compensation.
At that point, the employer should file an “Employer’s First Report of Occupational Injury or Illness” (FRI) form — which is sometimes referred to as an “accident report” — with both your:
- Workers’ Compensation Insurance Carrier
- Workers’ Compensation Commission
More resources for Connecticut employers
Below are resources for more information to help you should an incident happen to an employee while on the job
Workers’ compensation CT: Helping your business stay compliant
A workers’ compensation policy not only keeps your company compliant with Connecticut law, but it also provides peace of mind for you and your team. Having a policy ensures that your employees will be covered if they suffer from work-related illnesses or injuries. As an employer, you can rest assured that you will avoid facing any legal problems arising from workplace accidents or sickness. If you have questions, our team is here to help.
Please note all material in this article is for educational purposes only and does not constitute tax, benefits or legal advice. You should always contact a qualified tax, legal or financial professional, in your area for comprehensive tax or legal advice.
Take a tour to see how easy payroll can be.
Jon Davis is the Sr. Content Marketing Manager at OnPay. He has over 15 years of experience writing for small and growing businesses. Jon lives and works in Atlanta.