Workers’ Compensation Insurance Requirements for Your Business in Kansas

Generally, if you have a business in Kansas and you have employees, you are required to have workers' compensation insurance. According to the Kansas Department of Labor, employees are broadly defined and include full and part-time workers, seasonal workers, adults, minors, and others hired to do certain jobs.

There are a few exceptions to the requirement to carry workers' compensation insurance. Employers in certain agricultural pursuits and employers with a gross annual payroll of $20,000 or less are not required to have coverage. In a sole proprietorship or partnership, including limited liability companies, this total payroll does not include the wages paid to the owners or any of their family members.

Vehicle drivers who are owners and operators and have their own occupational accident insurance and realtors who work as independent contractors are not required to carry workers' compensation insurance. And firefighters that belong to a firefighters' relief association that has waived coverage are not required to have workers' compensation coverage.

The Kansas Department of Labor in conjunction with the Kansas Department of Revenue provides some guidelines for determining whether a worker is considered an employee or an independent contractor for purposes of workers' compensation coverage. The right of control is the most important factor, whether or not that right is exercised. When the employer has the right to exercise control over the manner and means by which the worker performs the services, it is deemed that there is an employer-employee relationship. A written contract establishing an independent contractor relationship would not make any difference if that right of control exists.

Other factors that are taken into consideration include whether the person performing the services has a separate occupation or business, whether the work is usually performed without supervision, the skills required to perform the services, who provides the tools, equipment and place of work, whether the services are continuous or are an isolated event, whether the work is part of the employer's regular business, and the form of payment, whether by time, piece rate, or by the job.

If you are not required to have workers' compensation coverage you can still elect to be covered. This ensures that the costs of work-related injuries will be covered and that you as the employer will be protected against potential lawsuits filed by workers who are injured.

As reported in the Wichita Business Journal, in April 2011 the Kansas Legislature passed legislation that made some significant changes in the workers' compensation law in Kansas. Among the changes is the requirement for employees to provide proof that an on-the-job injury was not due to a pre-existing condition and protection for employers from having to pay out employees who do not make a good-faith effort to return to work after suffering an injury. There was also an increase in the caps on pay-out settlements.

According to Work World, employers in Kansas can purchase workers' compensation insurance through private insurance companies. There is no state workers' compensation fund in Kansas. Other options would be self-insurance, or insurance through groups of employers.

Sources:

FAQs for Employers, Kansas Department of Labor

Josh Heck, Kansas Legislature approves significant changes in workers' compensation bill, Wichita Business Journal

Misclassification of Workers, Kansas Department of Revenue