Short answer: Yes. Idaho employers with even one full-time, part-time, seasonal or occasional employee must carry workers' comp unless a specific exemption applies, and the policy must be in place before the first hire. The employer pays the whole premium, waivers are prohibited, and officers who fail to buy coverage can be personally liable.
Before the first paycheck
The Idaho Industrial Commission's employer FAQ leaves little room for interpretation. Employers with one or more employees of any type, full-time, part-time, seasonal or occasional, must maintain a policy unless exempt, and "Workers' Compensation is required to be in place before the first employee is hired."
Two related rules:
- The employer pays. The law requires the employer to pay the entire cost. Deducting any part of the premium from wages is specifically prohibited.
- No waivers. A worker can't sign away coverage. The Commission says waivers are specifically prohibited.
The exemption list
Per the Commission, coverage isn't required for:
| Exempt employment | Notes |
|---|---|
| Household domestic service | In a private home |
| Family members living in the employer's household | Sole proprietorships only |
| Sole proprietor owners; working partners and LLC members | The owners themselves |
| Corporate officers owning at least 10% of stock who are also directors | If the corporation has directors |
| Work covered by federal workers' comp laws | |
| Agricultural spraying or dusting pilots | Under certain conditions |
| Associate brokers and salespersons in real estate | Paid solely by commission |
| Volunteer ski patrollers | |
| Officials at secondary-school athletic contests | Grades 7 to 12 |
| Casual employment | Occasional, irregular and unrelated to your business |
| Outworkers | Materials furnished to work on at a location you don't control |
Family members of a sole proprietor who don't live in the household may be able to file an election for exemption with the Commission. In some cases, the Commission says, you can elect coverage for exempt employment.
Remote workers in Idaho
The Commission's employer information page covers telecommuting. An out-of-state employer with an employee working from home in Idaho needs a workers' comp policy endorsed for Idaho, whether that worker is full-time, part-time, seasonal or occasional. Telecommuters don't fit the casual-employment or outworker exemptions. If you can't find coverage, the Commission points to NCCI, the assigned risk administrator.
Idaho also has agreements with some neighboring states that let Idaho employers cover employees working there under an Idaho policy. Ask an Employer Compliance office before working out of state.
Four ways to buy coverage
- Private insurance through an agent or company representative.
- The Idaho State Insurance Fund, which the Commission describes as a quasi-governmental entity, not a state agency, based in Boise.
- The assigned risk pool, administered by NCCI, for employers turned down by private insurers and the State Insurance Fund.
- Self-insurance, for employers with large payrolls that meet specific requirements and get Commission approval.
Contractors and 1099 labor
Idaho uses a right-to-control test. The Commission warns that contract workers, under verbal or written agreements, may be considered employees, and decides coverage requirements case by case.
Penalties for going without
If an employee is hurt while you're uninsured:
- You're personally liable for all benefits, including medical and wage loss.
- Add a 10% penalty on those medical and wage loss benefits, plus the worker's attorney fees (Idaho Code §72-210).
Even with no injury, Idaho Code §72-319 provides:
- A misdemeanor for failing to secure compensation. For corporations and LLCs, an officer, member or manager with authority to buy coverage can be individually guilty.
- Personal liability, jointly with the company, for that officer or manager.
- A penalty of $2 per employee per day or $25 per day, whichever is greater, for up to three consecutive years.
- A Commission lawsuit to stop the business from operating while out of compliance.
After an injury
All injuries must be reported to the Commission on a First Report of Injury. Anyone can confirm an employer's insurer for a specific date using the Commission's coverage verification tool.
Bottom line
In Idaho, coverage starts before employee number one, owners are exempt but can opt in, and officers share the risk if the business goes uninsured. Explore workers' compensation insurance with us.
Contact Alishahi Insurance or call (877) 711-4545. Visit insurance in Idaho.
Frequently asked questions
Is workers' comp required for one employee in Idaho?
Yes. One full-time, part-time, seasonal or occasional employee triggers the requirement, and coverage must be in place before the hire.
Can an Idaho employee waive workers' comp?
No. Waivers are specifically prohibited, and employers can't deduct premium from wages.
Do sole proprietors need workers' comp in Idaho?
Not for themselves. Sole proprietors, working partners and LLC members are exempt, but they must cover employees.
Do remote employees in Idaho need workers' comp?
Yes. An out-of-state employer with someone working from home in Idaho needs a policy endorsed for Idaho.
What is the penalty for no workers' comp in Idaho?
Personal liability for benefits plus 10% and attorney fees, a misdemeanor, and $2 per employee or $25 per day, whichever is greater.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.