Key Takeaways
- Iowa requires workers' compensation for most employers with at least one employee
- Employers can purchase coverage from private insurers or become self-insured
- Corporate officers (up to 4) can exempt themselves from coverage by filing a rejection form
- Workers have 90 days to notify employers of work injuries
- Benefits must begin within 11 days after the first day of disability
Iowa Workers' Compensation Insurance
Employer Requirements
Iowa law requires most employers to have workers' compensation coverage. Employers have two options:
| Option | Description |
|---|---|
| Private Insurance | Purchase from a licensed insurance company |
| Self-Insurance | Prove financial ability and hold security in trust |
Self-Insurance Requirements
To become a workers' compensation self-insurer:
- Submit proof of ability to pay required benefits
- Hold security in trust for potential claims
- Obtain approval from the Iowa Insurance Commissioner
Coverage Requirements
Who Must Be Covered
| Employment Type | Coverage Required? |
|---|---|
| Regular employees (1+) | Yes |
| Independent contractors | No |
| Partners in a partnership | No (optional) |
| LLC members (not employees) | No (optional) |
Employee Threshold
Unlike some states that require 3+ or 5+ employees, Iowa requires coverage for businesses with at least one employee.
Exemptions
Corporate Officer Exemption
- President, Vice President, Secretary, and Treasurer may exempt themselves
- Maximum of 4 officers can be exempt
- Must file a Rejection of Workers' Compensation Coverage form with Iowa Workforce Development
- Family farm corporation officers have different rules
Other Exemptions
| Category | Exemption Criteria |
|---|---|
| Domestic employees | Earn less than $1,500 in prior 12 months |
| Agricultural employees | Employer cash payroll less than $2,500 in prior calendar year |
Reporting Requirements
Employee Notification
- Workers have 90 days to notify employers of work injuries
Employer Reporting
If injury causes more than 3 days off work, permanent injury, or death:
- File First Report of Injury with the Workers' Compensation Division (WCD)
Benefit Timing
- Weekly benefits must start within 11 days after the first day of disability
Benefits Provided
| Benefit Type | Description |
|---|---|
| Medical benefits | Full coverage, no deductible |
| Temporary disability | Wage replacement during recovery |
| Permanent disability | Ongoing benefits for lasting impairment |
| Death benefits | Payments to dependents |
| Vocational rehabilitation | Return-to-work assistance |
Penalties for Non-Compliance
Employers without required coverage may face:
- Criminal penalties
- Civil penalties
- Loss of workers' comp law protections
- Full tort liability for employee injuries
Exam Tip: Iowa requires workers' comp for employers with just 1 employee, which is stricter than many states. Also remember the 90-day notification rule for employees and 11-day benefit start requirement.
How many employees must an Iowa employer have before workers' compensation is required?
How long do Iowa workers have to notify their employer of a work-related injury?
How many corporate officers can exempt themselves from Iowa workers' compensation coverage?