Simply Business homepage
Call Us(844) 654-7272
Get a QuoteSign In
WORKERS' COMP

States Where Employer Costs for Workers' Comp Have Decreased the Most

5-minute read

WC_States_Cost_hero.png
Aubrey Jane McClaine

Aubrey Jane McClaine

31 May 2023

Share on FacebookShare on TwitterShare on LinkedIn
Andrey_Popov // Shutterstock

When workers are injured on the job, workers' compensation programs help pay for medical care, lost wages, and even death benefits. These programs may also cover long-term medical conditions resulting from work-related exposure to harmful substances such as asbestos and pesticides. Most states—but not all—require employers to provide workers' compensation benefits to employees.

Costs for workers’ compensation insurance are declining nationwide. From 2016 to 2020, the total amount spent by employers on workers' compensation insurance fell from $100.2 billion to $93 billion per year. To better understand how worker's compensation insurance costs have changed, Simply Business used a 2022 data release from the nonprofit National Academy of Social Insurance to rank the states where employer costs for workers' compensation insurance decreased the most from 2016 to 2020. Employer costs are reported per $100 of covered wages.

Nationally, the vast majority of workers' compensation premiums are paid by employers. The amount they contributed declined by 20.7% overall, but figures varied widely from state to state between 2016 through 2020, according to the study. Employer costs did not rise in any states between that period—Hawaii is the only state where costs remained the same. Nevada's standardized employer costs decreased the least during that period, by 5.8%, while North Dakota's decreased the most, at 31.3%.

Reasons for the state-by-state decreases vary, including whether people who contracted COVID-19 on the job were eligible for benefits and changes to laws around medical and insurance policies.

One factor driving costs down in 2020 was due to the COVID-19 pandemic's impact on low-wage workers, who traditionally have higher workers' compensation costs, according to the National Academy of Social Insurance. These lower wage workers disproportionately lost their jobs during early 2020, reducing the potential for payouts from insurance policies. As those jobs return, they may push premiums higher.

WC_States_Cost_-_Hawaii.png
Canva

#51. Hawaii

- No change in costs when comparing 2016 to 2020

- Employer cost for workers' compensation, 2020: $1.69 per $100 of covered wages

#50. Nevada

- Decrease from 2016 to 2020: 5.8%

- Employer cost for workers' compensation, 2020: $0.92 per $100 of covered wages

#49. Missouri

- Decrease from 2016 to 2020: 9.3%

- Employer cost for workers' compensation, 2020: $1.10 per $100 of covered wages

#48. South Carolina

- Decrease from 2016 to 2020: 11.1%

- Employer cost for workers' compensation, 2020: $1.55 per $100 of covered wages

WC_States_Cost_-_Idaho.png
Canva

#47. Idaho

- Decrease from 2016 to 2020: 13.8%

- Employer cost for workers' compensation, 2020: $1.47 per $100 of covered wages

#46. Mississippi

- Decrease from 2016 to 2020: 14.1%

- Employer cost for workers' compensation, 2020: $1.11 per $100 of covered wages

#45. Massachusetts

- Decrease from 2016 to 2020: 14.1%

- Employer cost for workers' compensation, 2020: $0.65 per $100 of covered wages

#44. Rhode Island

- Decrease from 2016 to 2020: 14.8%

- Employer cost for workers' compensation, 2020: $0.97 per $100 of covered wages

#43. Washington DC

- Decrease from 2016 to 2020: 14.9%

- Employer cost for workers' compensation, 2020: $0.41 per $100 of covered wages

WC_States_Cost_-_Georgia.png
ESB Professional // Shutterstock

#42. Georgia

- Decrease from 2016 to 2020: 15.0%

- Employer cost for workers' compensation, 2020: $0.94 per $100 of covered wages

#41. Louisiana

- Decrease from 2016 to 2020: 15.8%

- Employer cost for workers' compensation, 2020: $1.34 per $100 of covered wages

#40. Maine

- Decrease from 2016 to 2020: 16.2%

- Employer cost for workers' compensation, 2020: $1.24 per $100 of covered wages

39. Minnesota

- Decrease from 2016 to 2020: 17.1%

- Employer cost for workers' compensation, 2020: $0.98 per $100 of covered wages

#38. Delaware

- Decrease from 2016 to 2020: 17.7%

- Employer cost for workers' compensation, 2020: $1.22 per $100 of covered wag

WC_States_Cost_-_Nebraska.png
Canva

#37. Nebraska

- Decrease from 2016 to 2020: 18.5%

- Employer cost for workers' compensation, 2020: $1.02 per $100 of covered wages

#36. New Jersey

- Decrease from 2016 to 2020: 18.9%

- Employer cost for workers' compensation, 2020: $1.28 per $100 of covered wages

#35. Pennsylvania

- Decrease from 2016 to 2020: 19.4%

- Employer cost for workers' compensation, 2020: $1.19 per $100 of covered wages

#34. Virginia

- Decrease from 2016 to 2020: 19.6%

- Employer cost for workers' compensation, 2020: $0.61 per $100 of covered wages

WC_States_Cost_-_Connecticut.png
James Kirkikis // Shutterstock

#33. Connecticut

- Decrease from 2016 to 2020: 20.1%

- Employer cost for workers' compensation, 2020: $1.01 per $100 of covered wages

#32. Arkansas

- Decrease from 2016 to 2020: 20.7%

- Employer cost for workers' compensation, 2020: $0.63 per $100 of covered wages

#31. Texas

- Decrease from 2016 to 2020: 20.9%

- Employer cost for workers' compensation, 2020: $0.46 per $100 of covered wages

#30. Oregon

- Decrease from 2016 to 2020: 21.1%

- Employer cost for workers' compensation, 2020: $0.89 per $100 of covered wages

WC_States_Cost_-_NY.png
GagliardiPhotography // Shutterstock

#29. New York

- Decrease from 2016 to 2020: 21.4%

- Employer cost for workers' compensation, 2020: $1.29 per $100 of covered wages

#28. Indiana

- Decrease from 2016 to 2020: 21.5%

- Employer cost for workers' compensation, 2020: $0.64 per $100 of covered wages

#27. West Virginia

- Decrease from 2016 to 2020: 21.6%

- Employer cost for workers' compensation, 2020: $1.28 per $100 of covered wages

#26. Florida

- Decrease from 2016 to 2020: 21.6%

- Employer cost for workers' compensation, 2020: $1.14 per $100 of covered wages

#25. New Mexico

- Decrease from 2016 to 2020: 21.9%

- Employer cost for workers' compensation, 2020: $1.14 per $100 of covered wages

WC_States_Cost_-_Kentucky.png
Canva

#24. Kentucky

- Decrease from 2016 to 2020: 21.9%

- Employer cost for workers' compensation, 2020: $0.80 per $100 of covered wages

#23. Kansas

- Decrease from 2016 to 2020: 22.1%

- Employer cost for workers' compensation, 2020: $0.89 per $100 of covered wages

#22. Wisconsin

- Decrease from 2016 to 2020: 22.9%

- Employer cost for workers' compensation, 2020: $1.32 per $100 of covered wages

#21. Vermont

- Decrease from 2016 to 2020: 23.4%

- Employer cost for workers' compensation, 2020: $1.39 per $100 of covered wages

#20. Michigan

- Decrease from 2016 to 2020: 23.8%

- Employer cost for workers' compensation, 2020: $0.61 per $100 of covered wages

WC_States_Cost_-_Oklahoma.png
LF Images // Shutterstock

#19. Oklahoma

- Decrease from 2016 to 2020: 24.0%

- Employer cost for workers' compensation, 2020: $1.06 per $100 of covered wages

#18. South Dakota

- Decrease from 2016 to 2020: 24.2%

- Employer cost for workers' compensation, 2020: $0.92 per $100 of covered wages

#17. Alabama

- Decrease from 2016 to 2020: 24.3%

- Employer cost for workers' compensation, 2020: $0.78 per $100 of covered wages

#16. Maryland

- Decrease from 2016 to 2020: 24.9%

- Employer cost for workers' compensation, 2020: $0.81 per $100 of covered wages

#15. Montana

- Decrease from 2016 to 2020: 25.0%

- Employer cost for workers' compensation, 2020: $1.64 per $100 of covered wages

WC_States_Cost_-_Colorado.png
Lauren Orr // Shutterstock

#14. Colorado

- Decrease from 2016 to 2020: 25.3%

- Employer cost for workers' compensation, 2020: $0.76 per $100 of covered wages

#13. Iowa

- Decrease from 2016 to 2020: 26.0%

- Employer cost for workers' compensation, 2020: $1.14 per $100 of covered wages

#12. Alaska

- Decrease from 2016 to 2020: 26.3%

- Employer cost for workers' compensation, 2020: $1.74 per $100 of covered wages

#11. Illinois

- Decrease from 2016 to 2020: 26.7%

- Employer cost for workers' compensation, 2020: $0.85 per $100 of covered wages

#10. New Hampshire

- Decrease from 2016 to 2020: 27.2%

- Employer cost for workers' compensation, 2020: $0.82 per $100 of covered wages

WC_States_Cost_-_Utah.png
Jason Finn // Shutterstock

#9. Utah

- Decrease from 2016 to 2020: 27.7%

- Employer cost for workers' compensation, 2020: $0.65 per $100 of covered wages

#8. Ohio

- Decrease from 2016 to 2020: 27.8%

- Employer cost for workers' compensation, 2020: $0.68 per $100 of covered wages

#7. Wyoming

- Decrease from 2016 to 2020: 28.1%

- Employer cost for workers' compensation, 2020: $1.78 per $100 of covered wages

#6. California

- Decrease from 2016 to 2020: 28.5%

- Employer cost for workers' compensation, 2020: $1.45 per $100 of covered wages

#5. Tennessee

- Decrease from 2016 to 2020: 28.8%

- Employer cost for workers' compensation, 2020: $0.64 per $100 of covered wages

WC_States_Cost_-_North_carolina.png
Kevin Ruck // Shutterstock

#4. North Carolina

- Decrease from 2016 to 2020: 29.8%

- Employer cost for workers' compensation, 2020: $0.74 per $100 of covered wages

#3. Arizona

- Decrease from 2016 to 2020: 29.9%

- Employer cost for workers' compensation, 2020: $0.67 per $100 of covered wages

#3. Arizona

- Decrease from 2016 to 2020: 29.9%

- Employer cost for workers' compensation, 2020: $0.67 per $100 of covered wages

2. Washington

- Decrease from 2016 to 2020: 30.7%

- Employer cost for workers' compensation, 2020: $1.20 per $100 of covered wages

#1. North Dakota

- Decrease from 2016 to 2020: 31.3%

- Employer cost for workers' compensation, 2020: $1.00 per $100 of covered wages

Aubrey Jane McClaine

Written by

Aubrey Jane McClaine

This content is for general, informational purposes only and is not intended to provide legal, tax, accounting, or financial advice. Please obtain expert advice from industry specific professionals who may better understand your business’s needs. Read our full disclaimer

Find this article useful? Spread the word.

Share on Facebook
Share on Twitter
Share on LinkedIn

INSURANCE

Business InsuranceGeneral Liability InsuranceWorkers Compensation InsuranceProfessional Liability InsuranceErrors & Omissions InsuranceSole Proprietors Workers CompensationCyber InsuranceSelf-Employed Insurance

BUSINESSES

Contractors InsuranceCleaners InsuranceE-commerce InsuranceHandyman InsuranceHome Improvement Contractor InsuranceLandscaping InsuranceLawn Care InsurancePhotographers Insurance

ABOUT

About usContact UsCareersSite MapInsurance Providers

SIMPLY U

General BusinessProtect Your BusinessStart Your Business

ADDRESS

Simply Business1 Beacon Street, 15th FloorBoston, MA02108

LEGAL

Terms & ConditionsPrivacy PolicyPrivacy Notice for CA ResidentsResponsible Disclosure Policy

*Harborway Insurance policies are underwritten by Spinnaker Insurance Company and reinsured by Munich Re, an A+ (Superior) rated insurance carrier by AM Best. Harborway Insurance is a brand name of Harborway Insurance Agency, LLC, a licensed insurance producer in all 50 states and the District of Columbia. California license #6004217.

© Copyright 2024 Simply Business. All Rights Reserved. Simply Business, LLC is a licensed insurance producer in all U.S. States and the District of Columbia. Simply Business has its registered office at Simply Business, 1 Beacon Street, 15th Floor, Boston, MA, 02108. In California, we operate under the name Simply Business Insurance Agency, LLC, License #0M20593. In Colorado, we operate under the name Simply Business, LLC DBA Simply Business Insurance Agency. In New York, we operate under the name Simply Business Insurance Agency. In Pennsylvania, we operate under the name Simply Business Insurance Agency, LLC. In Texas, we operate under the name, U.S. Simply Business, LLC. For more information, please refer to our Privacy Policy and Terms & Conditions.