Vermont law states that Workers' Compensation Insurance is mandatory for all employers that hire one or more employees on a full- or part-time basis. If you hire employees outside the state, but they work for you in Vermont, you must purchase coverage. Employers may choose to include a family member who lives with them, and they do not need approval from the Vermont Department of Labor to do so.
VT Workers' Comp: Key Details
- Sole proprietors and partners in Vermont can purchase Workers' Comp for themselves, but are not required to.
- Corporate officers and LLC members are included in coverage requirements, but may elect to exempt themselves.
- People who work with independent contractors must sort out in writing who is responsible for carrying Workers' Compensation Insurance. You will be responsible for the insurance if the independent contractor…
- Doesn't have coverage.
- Does not meet the definition of a contractor under law.
- The following people are not required to be covered by Workers' Comp:
- Casual employees whose work is not for the purpose of the employer's trade or business.
- A person engaged in amateur sports.
- A person engaged in agriculture or farm employment for an employer whose aggregate payroll is less than $10,000 in a calendar year.
- Certain elected officials.
- You may self-insure (if approved) or purchase insurance through a commercial insurance carrier.
Want to know more about how Vermont's Workers' Compensation laws affect your business? Visit the state's Department of Labor for more details.