3.2 Connecticut Workers' Compensation
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
The Connecticut Workers' Compensation Commission (WCC)
Connecticut's system is administered by the Workers' Compensation Commission under the Workers' Compensation Act (CGS Chapter 568). The state is divided into eight geographic districts, each headed by a Commissioner who adjudicates disputes; the Compensation Review Board (CRB) hears appeals from Commissioner decisions.
Key Claim Deadlines and Forms
- The injured worker generally must give written notice of claim within one year of an accidental injury or three years of the first manifestation of an occupational disease (CGS 31-294c), filed on Form 30C.
- An employer that wishes to contest must file a Form 43 (notice to contest) within 28 days of receiving notice, or it risks being precluded from contesting liability under the Act.
- The employer/insurer files the First Report of Injury (Form 30D) promptly after notice of a lost-time injury.
Benefit Calculation Detail
The compensation rate equals 75% of the worker's after-tax average weekly wage (AWW), subject to a statutory maximum tied to the state average weekly wage and a minimum floor. Temporary total (TT) and permanent total (PT) benefits both use this rate.
Worked Example
A worker earns a gross AWW of $1,000. After estimated payroll taxes the net AWW is about $840. The TT rate is 75% x $840 = $630 per week, capped at the current state maximum. Permanent partial disability (PPD) for a scheduled member multiplies that rate by the statutory number of weeks assigned to the body part and by the impairment percentage. A 10% rating on a 364-week dominant (master) arm pays 36.4 weeks x the rate.
Other CT-Specific Benefits
- Scarring/disfigurement awards (up to 208 weeks) for permanent significant scars on the face, head, neck, or other normally exposed body parts.
- Cost-of-living adjustments (COLA) apply to certain PT and dependent death benefits.
- The Second Injury Fund historically apportioned costs of aggravated pre-existing conditions; transfers to it were closed for injuries occurring after July 1, 1995 - a frequent exam distractor.
Dispute Resolution and Return-to-Work
When a Connecticut claim is contested, the matter proceeds before the district Commissioner, who may hold an informal hearing to encourage settlement, then a formal hearing that produces a binding Finding and Award appealable to the Compensation Review Board and ultimately the Appellate Court. Connecticut emphasizes returning injured workers to suitable employment; when a treating physician releases a worker to light duty, the employer's offer of suitable work can reduce or end temporary-total benefits, shifting the worker to temporary partial if the new wage is lower.
Voluntary agreements and stipulations (full-and-final settlements) approved by the Commissioner are common ways to close claims.
Coverage Sources and Penalties Recap
Connecticut employers obtain coverage from the voluntary market, or, if rejected, through the assigned-risk (residual) market administered for the state. Large, financially sound employers may self-insure with Commission approval. Operating without required coverage exposes the employer to stop-work orders, per-employee daily fines, and loss of the exclusive-remedy defense, meaning an injured worker can sue in tort and the employer faces unlimited liability. These enforcement teeth are why the one-employee trigger and the duty to insure are so heavily emphasized.
Exam Tip: Connecticut requires workers' compensation starting from the FIRST employee - remember "1 or more," stricter than states that exempt small employers. Tie together the 75% of after-tax AWW rate, the Form 30C / Form 43 (28-day) deadlines, the eight-district Commission, and that non-compliance forfeits the exclusive-remedy defense.
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?