Do All Vermont Employers Have To Carry Workers’ Compensation Insurance?

If you are an employee in Vermont, you might be wondering if your employer is required to carry workers’ compensation insurance. This coverage is very important. After a covered employee sustains a work-related injury, workers’ compensation insurance takes care of their medical expenses and lost wages (a portion of it), and offers disability benefits if they are left with long-term limitations. Understanding whether your employer is required to have workers’ compensation is crucial for helping you protect your rights and take action if necessary. In this article, we break down what Vermont law says about this issue.

The General Rule in Vermont                                           

Under Vermont workers’ compensation law, the general rule is that all employers with at least one employee should carry workers’ compensation insurance. This is the law regardless of whether the employee is a full-time, part-time, or seasonal worker. When an employee is hired, the employer should already have workers’ compensation insurance in place, as employees are covered from the moment they are employed. This means that if a covered employee sustains a job injury on their first day of work, they have the right to file a workers’ compensation claim and seek compensation.

Exceptions to the Law

While Vermont law covers almost all employers, some employers are exempted from carrying workers’ compensation. The following are some of the categories that are exempted from workers’ compensation rules in Vermont;

• Sole proprietors and business partners. However, they can choose to carry insurance if they want.
• LLC members and corporate officers who have received permission to opt out from the Vermont Department of Labor (DOL).
• Farms that employ farm workers but have a payroll of below $10,000 a year.
• Casual workers whose work is not part of the employer’s regular business activities.
• Volunteers

In Vermont, independent contractors are also not covered under workers’ compensation. However, just because an employer classifies you as an independent contractor does not automatically mean you are one. Vermont employs a strict test to determine if a worker is an employee or an independent contractor. Generally, if your employer controls your work hours, work location, and how you perform your work, and provides the tools and training for you, you are an employee, and are most likely covered under workers’ compensation.

The Importance of Workers’ Compensation to Employees

After sustaining an injury while on your job, workers’ compensation can provide some much-needed benefits, including;

• Medical benefits
• A percentage of your regular paycheck if you can’t work while recovering
• Disability benefits if you sustain long-term limitations
• Vocational rehabilitation benefits, which are intended to help a worker return to gainful employment

If a worker dies after suffering a work-related injury, workers’ compensation can provide death benefits to their surviving family members.

What if My Employer Doesn’t Have Insurance?

Just because your employer is required to carry workers’ compensation insurance does not mean they will. Some employers do not abide by the rules. On the part of your employer, failure to carry workers’ compensation can result in serious penalties and fines.

Fortunately, even if your employer does not have workers’ compensation, you may have other options for recovering compensation. A qualified workers’ compensation attorney can help you explore your options.

Contact a Vermont Workers’ Comp Lawyer

If you’ve suffered an injury on the job and need help recovering benefits, contact our Vermont workers’ comp lawyer at Sluka Law PLC for help protecting your rights and ensuring you get the compensation you deserve.