Key Takeaways
- Connecticut requires workers' compensation for employers with 1 or more employees
- Coverage applies to full-time, part-time, contract, and seasonal employees
- Sole proprietors, LLC members, and corporate officers may elect to exclude themselves
- Household employees working fewer than 26 hours per week are exempt
- Penalties include $250+ per worker per day and stop-work orders for non-compliance
Connecticut Workers' Compensation Insurance
Who Must Carry Coverage
The One-Employee Rule
Connecticut requires workers' compensation insurance for any employer with 1 or more employees. This is one of the strictest requirements in the nation.
| Employee Type | Covered? |
|---|---|
| Full-time employees | Yes |
| Part-time employees | Yes |
| Contract workers | Yes (if employee relationship exists) |
| Seasonal employees | Yes |
| Household workers (26+ hrs/week) | Yes |
Exemptions
Who Can Be Excluded
- Sole proprietors - may elect exclusion for themselves
- LLC members - may elect exclusion for themselves
- Corporate officers - may elect exclusion for themselves
- Partners - may elect exclusion for themselves
- Household employees - exempt if working fewer than 26 hours per week
Important: Even if owners/officers elect to exclude themselves, they must still provide coverage for their employees.
Benefits Provided
Medical Benefits
- All reasonable and necessary medical treatment
- No deductible or co-pay for employees
- Prescription medications
- Hospital stays and surgeries
- Rehabilitation services
Disability Benefits
| Type | Description | Benefit Level |
|---|---|---|
| Temporary Total | Cannot work at all temporarily | 75% of after-tax average weekly wage |
| Temporary Partial | Can work reduced capacity | Difference between pre/post-injury wages |
| Permanent Total | Cannot work at all permanently | 75% of after-tax wage, ongoing |
| Permanent Partial | Permanent but partial impairment | Based on schedule of injuries |
Death Benefits
- Burial expenses (up to statutory limit)
- Weekly benefits to dependents
- Based on 75% of deceased worker's after-tax wage
Vocational Rehabilitation
- Job retraining when employee cannot return to previous work
- Assistance finding new employment
- Covered as part of workers' compensation
How to Obtain Coverage
Options for Employers
- Private Insurance - Purchase from licensed insurers (most common)
- Self-Insurance - Large employers may qualify
- Must prove financial solvency
- Requires Workers' Compensation Commission approval
Employer Requirements
Mandatory Posting
Employers must post the "Notice to Employees" in a conspicuous location at each workplace, informing workers of their rights.
Record Keeping
- Report all workplace injuries
- Maintain injury logs
- File required forms with Workers' Compensation Commission
Penalties for Non-Compliance
| Violation | Penalty |
|---|---|
| Per Worker Per Day | $250+ fine for each uncovered employee |
| Stop-Work Order | Business operations halted until compliant |
| Civil Liability | Employer loses exclusive remedy protection |
| Criminal Charges | Possible prosecution for willful violations |
The Exclusive Remedy Doctrine
Workers' compensation is typically the exclusive remedy for workplace injuries:
- Employees cannot sue employers for negligence
- Employers are protected from lawsuits
- BUT: Non-compliant employers lose this protection
- Intentional harm exceptions may apply
Exam Tip: Connecticut requires workers' compensation starting from the FIRST employee - remember "1 or more." This is stricter than many states that allow exemptions for small employers.
When is an employer in Connecticut required to carry workers' compensation insurance?
Which of the following workers is exempt from Connecticut workers' compensation requirements?
What penalty can Connecticut impose on employers who fail to carry required workers' compensation insurance?