Do businesses need workers compensation insurance before hiring?

Workers Compensation Insurance Requirements in North Dakota Before Hiring

In North Dakota, businesses must understand the requirements for workers compensation insurance before hiring employees to ensure compliance and protect their operations.

When Workers Compensation Insurance Is Required

• Mandatory Coverage: As of 2026, most employers with one or more employees are required to carry workers compensation insurance. This includes full-time, part-time, and seasonal workers.
• Exemptions: Certain types of businesses or independent contractors may be exempt, but employers should verify eligibility based on their specific situation.

Operational Steps Before Hiring

• Obtain Coverage: Secure workers compensation insurance before onboarding employees to avoid penalties and ensure employee injury protection.
• Register with the North Dakota Workforce Safety & Insurance (WSI): This state agency manages workers compensation claims and compliance.
• Verify Employee Classification: Properly classify workers to determine correct insurance premiums and compliance obligations.
• Maintain Accurate Records: Keep detailed payroll and employment records to support insurance reporting and audits.

Additional Operational Considerations

• Payroll Integration: Automate payroll systems to include workers compensation insurance premiums and deductions.
• Compliance Monitoring: Regularly review insurance status and employee classifications to stay compliant with state requirements.
• Employee Communication: Inform employees about workers compensation coverage and reporting procedures.