Workers Compensation in Wisconsin
In Wisconsin, operating without workers compensation coverage when it is legally required can cost your business up to $100 per day in fines, with penalties of up to $1,000 for the first ten days of noncompliance and as much as $10,000 overall, on top of potential criminal charges and personal liability for an injured worker's claim. In Minnesota, the penalties are even steeper, reaching up to $1,000 per employee per week, plus a stop-work order that can shut your operations down entirely and personal liability for an injured worker's benefits. For business owners in New Richmond and across the St. Croix Valley, workers compensation is not just a smart investment. For many, it is the law.
Wisconsin Workers Compensation Requirements
Wisconsin employers must carry workers compensation coverage if any of the following apply:
- You employ three or more full-time or part-time employees, coverage is required on the day the third person is hired
- You pay $500 or more in combined gross wages in any calendar quarter to one or more employees for work done in Wisconsin, coverage is required by the 10th day of the following month
- You are an out-of-state employer with employees working in Wisconsin
Part-time workers count toward your employee total. Sole proprietors and LLC members are generally exempt but can voluntarily purchase coverage, which is often a wise choice.
Minnesota Workers Compensation Requirements
Minnesota takes a stricter approach than most states. Under Minnesota Statutes section 176.181, coverage is required from your very first employee, with no minimum headcount to reach and no grace period for new employers. Part-time workers, seasonal help, and minors all count, so a policy needs to be in place on or before your first hire date. Only a narrow set of exemptions applies, mainly sole proprietors, business partners, and their immediate family members, along with certain qualifying corporate officers. Non-compliance is costly, with penalties reaching up to $1,000 per employee per week, an additional penalty of up to 65 percent on any benefits paid, stop-work orders, and direct civil liability to injured workers who can sue outside the workers comp system.
What Workers Compensation Covers
A workers compensation policy protects both your employees and your business when a workplace injury or illness occurs. Coverage typically includes:
- Medical Expenses – Covers hospital visits, surgery, medication, and rehabilitation costs resulting from a work-related injury or illness
- Lost Wage Replacement – Provides partial income replacement while an injured employee is unable to work
- Permanent Disability Benefits – Provides ongoing compensation if an employee suffers a lasting impairment
- Death Benefits – Pays funeral costs and provides financial support to dependents in the event of a fatal workplace accident
- Employer Liability Protection – Shields your business from lawsuits filed by injured employees outside of the standard workers comp system
Let Us Help You Stay Compliant and Protected
Workers compensation rules in Wisconsin and Minnesota are more nuanced than most business owners expect. Independent contractor classifications, family-member exemptions, and Minnesota's economic-realities test for worker classification all affect whether and when you need coverage. At B&B Insurance Services, we work with employers throughout St. Croix County and beyond to make sure their coverage is accurate, compliant, and structured to protect everyone in their workforce. We compare options from multiple carriers to find the right fit for your industry and payroll size.
Not sure if your business is required to carry coverage or whether your current policy is structured correctly? Visit our commercial insurance page to explore your other coverage options, or reach out to our team in New Richmond and let us walk you through exactly what your business needs.
