Idaho workers’ compensation law

Idaho businesses with one employee or more are required to carry workers’ compensation insurance. Workers’ compensation covers injuries from a specific workplace accident, as well as illnesses that develop over time.

Any employer with one full-time or part-time employee or more is required to have coverage, even if the employees are seasonal or occasional. A business is required to have its workers’ comp insurance in place before the first employee is hired.

In some circumstances, independent contractors must be included under your workers’ compensation coverage. The requirements are determined on a case-by-case basis, and you must contact the Idaho Industrial Commission (IIC) to ensure that your business is in compliance with Idaho law.

Exemptions from workers’ compensation requirements in Idaho include:

• Sole proprietors
• Family members employed by a sole proprietor and living in the same household
• Some family members of sole proprietors who don’t live in the same household may file for an exemption
• Partners or members of a limited liability company
• Corporate officers who own 10% of the company’s stock and who are also directors
• Employees covered under federal workers’ compensation
• Household or domestic workers
• Pilots of agricultural dusting or spraying planes
• Commission-based associates of real estate firms
• Volunteer ski patrollers
• Athletic officials for grades 7 to 12
• Irregular, casual employment that is unrelated to the employer’s normal business
• Outworkers

Estimated employer costs for workers’ compensation in Idaho are $1.70 per $100 in covered payroll, according to the National Academy of Social Insurance [PDF].

An employer’s cost for workers’ compensation coverage is based on payroll and the level of occupational risk that employees encounter. Idaho workers’ compensation law requires that the employer must pay the entire cost of coverage and is not permitted to deduct any portion from employee wages.

If an employee is injured at work and the employer does not have the required workers’ compensation coverage, the employer could be held personally liable for all benefits that would have been provided by workers’ compensation insurance. In addition, there could be a 10% penalty for the amount of medical and wage loss benefits, plus attorney fees incurred by the injured worker.

There’s also a penalty of $2 for each employee per day or $25 per day, whichever is higher, for the period of noncompliance. The IIC is permitted to file for an injunction that prohibits the employer from operating the business while in violation of the law. There can be criminal misdemeanor penalties, as well.

If an employee dies as a result of a work-related injury or illness, death benefits can be awarded to surviving dependents.

The surviving spouse can receive benefits for 500 weeks, unless they remarry within that time. Up to three dependent children can receive benefits until they reach 18 years old. Other family members, such as parents, siblings, grandparents, or grandchildren, could be eligible to receive benefits if they were financially dependent on the deceased worker.

Some funeral expenses can be paid if the death occurred within four years of the injury or disease.

A workers’ compensation settlement is an agreement between the parties that will resolve your workers’ compensation claim. This can benefit both the employee and the employer. A settlement in a workers’ compensation claim is a full and final resolution.

Most settlements close benefits forever, and they are provided in a lump sum. Every lump-sum settlement must be approved by the IIC before it is considered legally binding, and it must be in the best interest of all parties.

Some settlements allow for medical benefits to remain open, which is sometimes the case if the employee is likely to require additional or ongoing treatment.

A lump-sum settlement usually includes:

• Future medical costs
• Unpaid impairment balance
• Costs for disability related to decreased wage-earning capacity
• Retraining costs

Idaho does not have a statute of limitations on medical benefits if the employee has met filing and notice requirements and the claim was closed with a lump-sum settlement.

The employee is required to report any job-related injury or illness to the employer within 60 days of the date of the injury or discovery of the illness.

However, if income benefits were paid and discontinued more than four years from the date of the injury, the employee has one year from the date of the last payment to file an application for additional income benefits.

Start a free online application today to compare workers’ compensation insurance quotes for your small business from leading U.S. carriers. Insureon’s licensed agents specialize in insurance for numerous Idaho businesses.