Does Kansas require workers’ compensation insurance?
Yes, once payroll passes $20,000. Kansas ties the requirement to payroll, not head count: under K.S.A. 44-505, a business must carry workers' compensation unless its gross annual payroll for all employees was $20,000 or less last calendar year and it reasonably expects $20,000 or less this year. Wages paid to family members do not count toward the $20,000, and agricultural work is outside the Act. An employer under the line can still elect coverage.
Updated . Written by Andre Beukers, principal at Redoubt, a commercial insurance agency in Salt Lake City, not a government office.
How much payroll before Kansas requires workers' comp?
Kansas uses a payroll test instead of an employee count. Under K.S.A. 44-505 the Workers Compensation Act covers every non-agricultural employer except one whose total gross payroll was $20,000 or less in the preceding calendar year and that reasonably estimates $20,000 or less for the current year. A new business with no payroll history is judged on its estimate for the current year. Wages paid to a spouse or relative by blood or marriage are left out of the total.
Contractors should watch K.S.A. 44-503: a general contractor is liable for injuries to a subcontractor's workers on its job as if it employed them directly, which is why Kansas GCs ask subs for a certificate even when the sub is under $20,000 in payroll.
Source: K.S.A. 44-505, checked .
Which owners, officers, and family members are exempt in Kansas?
Sole proprietors, partners, LLC members, and other self-employed people are not covered by default. Under K.S.A. 44-542a each can elect in by buying a policy that clearly states it covers them; the carrier then files the election with the Division. Corporate executive officers are employees under K.S.A. 44-508, but an officer or other employee who owns 10% or more of the stock can file a written rejection of coverage (K.S.A. 44-543). Family members are employees; only their wages drop out of the $20,000 payroll count.
Source: K.S.A. 44-542a, checked .
What happens to a Kansas employer with no workers' comp?
Knowingly and intentionally failing to secure coverage is a class A misdemeanor under K.S.A. 44-532(c). After a hearing, the Director of Workers Compensation can also assess a civil penalty equal to the greater of $25,000 or twice the annual premium the employer would have paid (44-532(d)). If an uninsured employer cannot pay an injured worker, the worker can be paid from the state Workers Compensation Fund, and the Insurance Commissioner can then sue the employer to recover it (K.S.A. 44-532a).
Source: K.S.A. 44-532, checked .
Who enforces workers' comp in Kansas?
The Division of Workers Compensation inside the Kansas Department of Labor, run by the Director of Workers Compensation under K.S.A. 75-5708, enforces the requirement, holds the hearings on uninsured employers, and receives elections and rejections of coverage. The Kansas Insurance Department regulates the carriers and administers the Workers Compensation Fund.
Source: K.S.A. 75-5708, checked .
Where do Kansas employers buy coverage?
Kansas has no state fund. Under K.S.A. 44-532(b) an employer secures coverage in one of three ways: a policy from a carrier authorized in Kansas, approved self-insurance, or membership in a qualified group-funded pool. An employer that cannot get a policy in the voluntary market goes to the assigned-risk plan K.S.A. 40-2109 requires every workers' comp insurer and rating organization to maintain.
Source: K.S.A. 40-2109, checked .
Who sets the class codes and rates in Kansas?
Kansas is an NCCI state. Rating organizations are licensed by the Kansas Insurance Commissioner under K.S.A. 40-956, and NCCI files Kansas's advisory loss costs and publishes an annual Kansas State Advisory Report on that filing. Class codes and experience mods come from NCCI's rules; each carrier applies its own rates on top.
Source: NCCI, State Advisory Resources: Kansas, checked .
Is there an exemption or waiver form in Kansas?
Kansas has no no-employee waiver certificate. The filings are elections: an owner of 10% or more of a corporation's stock files a written rejection with the Director, before any injury, and gives the employer a duplicate (K.S.A. 44-543); an employer under the $20,000 line can file a written statement of election to come under the Act (K.S.A. 44-505(b)). Check with the Division of Workers Compensation for the current form and how to submit it.
A rejection only takes the named owner off the policy. Once payroll passes $20,000, the business still needs coverage for everyone else, and a hiring contractor may require a certificate either way.
Source: K.S.A. 44-543, checked .
Sorting out Kansas workers' comp for your business
Tell Redoubt what the business does, who works in it, and what the Kansas requirement in front of you says. We will say whether a policy, a waiver, or an exclusion fits.
This is general insurance information, not legal advice or a coverage determination. Statutes, agency instructions, policy forms, and the facts of the business control.
Workers’ comp requirements in every state
Each state page gives the employee threshold, the owner and officer exemptions, the penalty for going without, the rating bureau, the market, the enforcing agency, and the exemption filing, each with its statute or agency source.
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The hub, and the Kansas pages that go deeper
Kansas workers’ comp FAQ
Do I need workers' comp in Kansas with one employee?+
It depends on payroll, not head count. Under K.S.A. 44-505 one employee earning more than $20,000 a year puts a non-agricultural business under the Act, while several part-time employees whose combined wages stay at $20,000 or less do not. Wages paid to family members are not counted.
Are Kansas LLC members covered by workers' comp?+
Not unless they choose to be. K.S.A. 44-542a lets an LLC member, partner, or sole proprietor elect coverage by buying a policy that clearly names them; the carrier files the election with the Division of Workers Compensation.
What is the penalty for no workers' comp in Kansas?+
A knowing and intentional failure to insure is a class A misdemeanor, and after a hearing the Director can assess a civil penalty of $25,000 or twice the annual premium, whichever is greater (K.S.A. 44-532).
Does a Kansas general contractor pay for an uninsured sub's injured worker?+
It can. K.S.A. 44-503 makes the principal contractor liable for compensation to a subcontractor's workers injured on its job, with a right to recover from the subcontractor. A self-employed subcontractor is not counted as a worker for that rule.