Do all employers have to carry workers compensation on their employees?
The present law (see K.S.A. 44-505) covers all Kansas employers except for those in certain agricultural pursuits or those with a gross annual payroll of $20,000 or less. All payroll is taken into account, including that paid outside Kansas. If the employer is a sole proprietor or a partnership, the wages paid to the owners and any of their family members are not used in the computation of the gross annual payroll.
Per K.A.R. 51-11-6, the provision in K.S.A. 44-505 excluding the payroll of workers who are members of the employer’s family does not apply to corporate employers. A corporate employer’s total payroll is included for the purpose of determining whether the employer is subject to the workers compensation act.
Which Kansas employers are excluded from workers compensation?
Employment categories excluded from the law are:
- Certain agricultural pursuits
- Realtors who qualify as independent contractors
- Firefighters belonging to a firefighter’s relief association which has waived coverage under the workers compensation law
- Sole proprietors and partners
- Certain owner-operator vehicle drivers covered by their own occupational accident insurance policy
Fraudulent or Abusive Acts: Administrative and Criminal
Defined in K.S.A. 44-5,120(d) and 44-5,125. Examples of fraudulent or abusive acts include but are not limited to:
- making false or misleading statements to obtain benefits
- presenting a false certificate of insurance
- submitting a charge for health care not furnished
The penalty for committing such acts:
- $2,000 fine for each act of fraud or abuse
- misdemeanor or felony criminal charges
Employer Failure to Secure Workers Compensation Insurance
In general, an employer with a payroll exceeding $20,000 must secure workers compensation coverage for its employees. The penalty for violating this provision is twice the annual premium or $25,000, whichever is greater.
Employer Failure to Timely File Accident Report
Every employer has a duty to report employee accidents within 28 days if the injuries wholly or partially incapacitate the person for more than the day, shift or turn. Penalty for repeated violations is a $250 fine for each violation.