Massachusetts workers compensation requirements decide exactly when you must carry coverage, who counts toward the threshold, and what it costs to skip it. This guide breaks down the Massachusetts workers compensation requirements in plain English — the employee count that triggers the mandate, who is exempt, the penalty for going without, and how to get covered. All figures are from Massachusetts sources, verified as of June 2026.
In This Massachusetts Guide:
Is Workers’ Comp Required in Massachusetts?
Yes, workers compensation insurance is required for all employers in Massachusetts as soon as they have one or more employees, regardless of hours worked; there is no minimum employee count or hours threshold for most workers
Massachusetts Workers’ Comp Requirements at a Glance
Here are the exact Massachusetts workers compensation requirements every employer should know:
| Employees that trigger the mandate | 1 |
| Which workers count | All employees count toward the mandate — full-time, part-time, seasonal, temporary, and even family members who work for the business; domestic employees (nannies, housekeepers, home health aides) must work at least 16 hours per week before coverage is required |
| Who is exempt | Sole proprietors of an unincorporated business are not required to cover themselves; members of a limited liability company (LLC) and partners of a limited liability partnership (LLP) are not required to cover themselves but must cover any non-member employees; corporate officers/directors who each own at least 25 percent of the issued and outstanding stock may elect exemption by filing Form 153 with the Department of Industrial Accidents; nonprofit corporations with no paid employees are exempt; individuals employing workers solely to do work on their own personal residence are exempt |
| Owners & officers | Corporate officers or directors who own at least 25 percent of the corporation’s issued and outstanding stock may elect to exclude themselves from coverage by filing Form 153 (Affidavit of Exemption for Certain Corporate Officers) with the Department of Industrial Accidents; sole proprietors and LLC members/LLP partners may elect into coverage but are not required to carry it for themselves |
| Penalty for going without | Criminal — fine of up to 1500 and/or imprisonment for up to 1 year under MGL Chapter 152 Section 25C; if the employer is a corporation the president and/or treasurer may be held personally liable; civil — the Department of Industrial Accidents may issue a stop-work order with fines of 100 per day (including weekends and holidays) from the date of the order, increasing to 250 per day if the employer appeals or continues operating in violation; fines accrue daily until coverage is obtained and the total fine is paid; employers may also be debarred from public contracts for 3 years and state/local licensing agencies may withhold issuance or renewal of business licenses or building permits |
| Monopolistic state? | No — buy from private carriers |
| State fund | NONE — Massachusetts does not operate a state fund; coverage is obtained through the private insurance market |
How to Get Workers’ Comp Coverage in Massachusetts
Employers obtain coverage by purchasing a policy from a licensed private insurance carrier; employers who cannot obtain coverage in the voluntary market may apply to the Massachusetts Workers Compensation Assigned Risk Pool administered by the Workers Compensation Rating and Inspection Bureau of Massachusetts (WCRIBMA); large employers meeting financial requirements may apply to self-insure through the Department of Industrial Accidents
Private market: YES
What Workers’ Comp Covers in Massachusetts
Workers’ compensation is a no-fault system: an injured employee gets benefits without having to prove the employer did anything wrong, and in exchange gives up the right to sue for most workplace injuries. A typical Massachusetts policy pays for medical treatment tied to a work injury, part of the wages lost while the worker recovers, longer-term disability benefits if the injury is permanent, and death benefits to a family.
It also includes employers-liability coverage, which protects the business if an injury still leads to a lawsuit. That trade-off is the practical heart of the Massachusetts workers compensation requirements: the coverage exists to keep one bad injury from sinking both the worker and the business.
Employees vs. Independent Contractors in Massachusetts
The most common way owners get the Massachusetts workers compensation requirements wrong is by assuming a worker is an “independent contractor” who does not count. State agencies look at how the work is actually controlled, not the label on a 1099. If Massachusetts decides a contractor was really an employee, the business can owe back premiums and penalties as if coverage should have been in place all along.
When you are close to the employee threshold, confirm each worker’s status with your state board before you decide you are exempt.
Other Massachusetts workers’-comp rules: Issuing a 1099 tax form to a worker does not exempt an employer from the requirement to provide workers compensation coverage if the worker meets the definition of an employee under Massachusetts law; out-of-state employers operating in Massachusetts must provide coverage for all employees working in the Commonwealth;
every state or local licensing agency must withhold issuance or renewal of a license or permit for any applicant who has not produced acceptable evidence of workers compensation compliance under MGL Chapter 152 Section 25C(6)
Understanding Massachusetts Workers Compensation Requirements
The Massachusetts workers compensation requirements exist to make sure injured employees get medical care and lost wages without having to sue. For most owners, the Massachusetts workers compensation requirements come down to one number: the employee count that triggers the mandate, shown in the table above.
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Once you hit that count, Massachusetts workers compensation requirements apply whether you planned for them or not, and the penalty for going without is real. If any part of the Massachusetts workers compensation requirements is unclear for your business, your state workers’-comp board can confirm the threshold, the exemptions, and how to get covered.
Next step: Once you know what your business in Massachusetts actually needs, comparing quotes from several carriers takes only a few minutes. Many owners do this right after they understand their state and trade requirements.
Frequently Asked Questions
Is workers’ comp required in Massachusetts?
Yes, workers compensation insurance is required for all employers in Massachusetts as soon as they have one or more employees, regardless of hours worked; there is no minimum employee count or hours threshold for most workers
What is the penalty for not having workers’ comp in Massachusetts?
Criminal — fine of up to 1500 and/or imprisonment for up to 1 year under MGL Chapter 152 Section 25C; if the employer is a corporation the president and/or treasurer may be held personally liable; civil — the Department of Industrial Accidents may issue a stop-work order with fines of 100 per day (including weekends and holidays) from the date of the order,
increasing to 250 per day if the employer appeals or continues operating in violation; fines accrue daily until coverage is obtained and the total fine is paid; employers may also be debarred from public contracts for 3 years and state/local licensing agencies may withhold issuance or renewal of business licenses or building permits
Who is exempt from Massachusetts workers’ comp?
Sole proprietors of an unincorporated business are not required to cover themselves; members of a limited liability company (LLC) and partners of a limited liability partnership (LLP) are not required to cover themselves but must cover any non-member employees; corporate officers/directors who each own at least 25 percent of the issued and outstanding stock may elect exemption by filing Form 153 with the Department of Industrial Accidents;
nonprofit corporations with no paid employees are exempt; individuals employing workers solely to do work on their own personal residence are exempt
Official Massachusetts Sources & Resources
- Massachusetts Massachusetts Department of Industrial Accidents (DIA): https://www.mass.gov/orgs/department-of-industrial-accidents
- Massachusetts Workers’ Comp Statute: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter152
- U.S. Department of Labor — Workers’ Comp: dol.gov
- U.S. Small Business Administration: sba.gov
These Massachusetts workers compensation requirements were last verified against official sources in June 2026. Rules and penalties change — confirm the current figure with your state workers’-comp board or a licensed agent.
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Disclaimer: This guide is informational only and is not insurance, legal, or tax advice. Business Insure Guide is an independent educational resource, not an insurance agency or carrier. Coverage needs, legal requirements, and prices vary by business, profession, and state and change over time. Always verify the exact requirement and price with a licensed insurance agent and your state before you buy.