Does Maine require workers’ compensation insurance?
Yes. Maine requires workers' compensation from the first employee: 39-A M.R.S. 401 makes every private employer secure coverage for all of its employees, with narrow carve-outs for domestic service and some seasonal farm and aquaculture labor. Sole proprietors, partners, and LLC members are not covered unless they elect it. Executive officers of a for-profit corporation are employees unless they own at least 20% of the voting stock and the Workers' Compensation Board approves their waiver.
Updated . Written by Andre Beukers, principal at Redoubt, a commercial insurance agency in Salt Lake City, not a government office.
How many employees before Maine requires workers' comp?
Maine has no minimum head count. Under 39-A M.R.S. 401(1), every private employer, including an independent contractor who hires and pays employees, must buy a workers' compensation policy or self-insure for all employees. The exceptions are employers of domestic service workers, and farm or aquaculture employers whose seasonal, casual, or small crews are covered by employer's liability and medical payments insurance at the limits the statute sets.
Source: 39-A M.R.S. 401, checked .
Which owners, officers, and family members are exempt in Maine?
A person who operates a business alone, in a partnership, or as an LLC member is not an employee unless they elect personal coverage on a policy (39-A M.R.S. 102(11)(B)). Executive officers of a for-profit corporation are employees; one can step out only by a written waiver the Workers' Compensation Board approves, and only if the Board finds they own at least 20% of the voting stock (or are a shareholder of a professional corporation). Officers of a nonprofit are outside the Act unless the corporation includes them.
A relative of a corporate owner can waive only if that owner has waived too, per the Board's waiver instructions. People harvesting forest products cannot use the owner or family waivers; the Act sets separate coverage rules for them.
Source: 39-A M.R.S. 102(11), checked .
What happens to a Maine employer with no workers' comp?
An employer that fails to secure coverage owes a civil penalty of up to $10,000 or up to 108% of the premium it should have paid for the uninsured period, figured on MEMIC's discounted standard premium, whichever is larger (39-A M.R.S. 324(3)(B)). A knowing violation is also a Class D crime and can lead to administrative dissolution of a corporation or LLC and suspension or revocation of a state license. An uninsured employer also loses its usual defenses if an injured worker sues (39-A M.R.S. 401(1)).
In a company, the person with primary responsibility for buying the coverage can be punished under the same section. An employer that has a policy but classifies employees as independent contractors has not complied for those workers (39-A M.R.S. 401(3)).
Source: 39-A M.R.S. 324(3), checked .
Who enforces workers' comp in Maine?
The Maine Workers' Compensation Board enforces the requirement. Its Abuse Investigation Unit assesses the no-coverage penalties under section 324(3) and can refer cases to the Attorney General for prosecution, and its Insurance Coverage Unit keeps the coverage records, runs the public coverage verification link, and handles waiver applications. The Bureau of Insurance regulates carriers, not employers.
Source: Maine Workers' Compensation Board, Abuse Investigation Unit, checked .
Where do Maine employers buy coverage?
Maine employers buy from any insurer licensed to write workers' compensation in the state, or from the Maine Employers' Mutual Insurance Company (MEMIC). The Legislature created MEMIC in 24-A M.R.S. Chapter 52 to replace the old residual market, and 24-A M.R.S. 3711 requires it to cover any employer entitled to coverage that cannot, or chooses not to, buy in the voluntary market. MEMIC is a policyholder-owned mutual, not a state agency (24-A M.R.S. 3705). Qualified employers can also self-insure.
Source: 24-A M.R.S. 3711, checked .
Who sets the class codes and rates in Maine?
Maine is an NCCI state. Under 24-A M.R.S. 2382-B the Superintendent of Insurance designates an advisory organization, and every carrier follows the uniform classification system and experience rating plan it files. NCCI files Maine's advisory loss costs each year and publishes a state advisory report on each filing. Class codes and experience mods come from NCCI; each carrier sets its own rates on top.
Source: NCCI, State Advisory Resources: Maine, checked .
Is there an exemption or waiver form in Maine?
Yes, but it is narrower than many states'. The Workers' Compensation Board's Application for Waiver (Form WCB-2C) is for a corporate owner with at least 20% of the voting stock, a professional corporation shareholder, and family members of owners. A waiver is not valid until the Board approves it, and it can be revoked on 30 days' written notice. Sole proprietors, partners, and LLC members do not file a waiver for themselves, because they are not covered unless they elect it.
A separate form covers subcontractors. Since October 25, 2023, a worker who wants to be presumed an independent contractor files an Independent Contractor Statement (Form WCB-267) with the Board. It takes effect when the Board receives it, lasts one year, and creates a presumption that can be rebutted, not a guarantee.
Source: Maine Workers' Compensation Board, Waivers, checked .
Sorting out Maine workers' comp for your business
Tell Redoubt what the business does, who works in it, and what the Maine 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 Maine pages that go deeper
Maine workers’ comp FAQ
Do I need workers' comp in Maine with one part-time employee?+
Yes, in most cases. 39-A M.R.S. 401 requires every private employer to cover all employees, with no head-count or hours floor. The exceptions are domestic service and certain farm and aquaculture labor backed by employer's liability and medical coverage, and the employer has to prove the exception applies.
Does a Maine LLC member need workers' comp on themselves?+
No. An LLC member, sole proprietor, or partner is not an employee unless they elect personal coverage on a policy, and the Workers' Compensation Board's instructions say they do not file a waiver for themselves. Once the LLC hires anyone, it needs a policy for those employees.
Can a Maine corporate officer opt out of workers' comp?+
Only an officer who owns at least 20% of the voting stock, or a shareholder of a professional corporation, can waive, and only after the Workers' Compensation Board approves Form WCB-2C. Until the Board marks the waiver approved, the officer is an employee who must be covered.
What if my 1099 subcontractor in Maine has no workers' comp?+
If the sub is a true independent contractor, its employees are not yours under 39-A M.R.S. 102(11). If the Board finds the sub was really your employee, that pay belongs on your policy and the misclassification counts as a failure to insure under 39-A M.R.S. 401(3). An Independent Contractor Statement (WCB-267) on file helps but can be rebutted.