States where employer costs for workers' comp have decreased the most
Andrey_Popov // Shutterstock
States where employer costs for workers’ comp have decreased the most
A worker with a broken wrist in a splint typing on their laptop.
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.
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#51. Hawaii
The coastline and luxury hotels and apartments in Honolulu.
– No change in costs when comparing 2016 to 2020
– Employer cost for workers’ compensation, 2020: $1.69 per $100 of covered wages
Jacob Boomsma // Shutterstock
#50. Nevada
An aerial view of Carson City, Nevada.
– Decrease from 2016 to 2020: 5.8%
– Employer cost for workers’ compensation, 2020: $0.92 per $100 of covered wages
Paul Brady Photography // Shutterstock
#49. Missouri
The St. Louis Gateway Arch in Missouri.
– Decrease from 2016 to 2020: 9.3%
– Employer cost for workers’ compensation, 2020: $1.10 per $100 of covered wages
PQK // Shutterstock
#48. South Carolina
A scenic river view and waterfront houses, in North Myrtle Beach in South Carolina.
– Decrease from 2016 to 2020: 11.1%
– Employer cost for workers’ compensation, 2020: $1.55 per $100 of covered wages
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#47. Idaho
Boise, Idaho, as viewed from afar, with trees in the foreground.
– Decrease from 2016 to 2020: 13.8%
– Employer cost for workers’ compensation, 2020: $1.47 per $100 of covered wages
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#46. Mississippi
Downtown Jackson, Mississippi, at sunset.
– Decrease from 2016 to 2020: 14.1%
– Employer cost for workers’ compensation, 2020: $1.11 per $100 of covered wages
quiggyt4 // Shutterstock
#45. Massachusetts
The historic street clock in Wellesley, Massachusetts.
– Decrease from 2016 to 2020: 14.1%
– Employer cost for workers’ compensation, 2020: $0.65 per $100 of covered wages
Ramunas Bruzas // Shutterstock
#44. Rhode Island
Building, boats, and docks at old harbor in Newport, Rhode Island.
– Decrease from 2016 to 2020: 14.8%
– Employer cost for workers’ compensation, 2020: $0.97 per $100 of covered wages
Sean Pavone // Shutterstock
#43. Washington DC
The Washington Monument and Reflecting Pool at dawn.
– Decrease from 2016 to 2020: 14.9%
– Employer cost for workers’ compensation, 2020: $0.41 per $100 of covered wages
ESB Professional // Shutterstock
#42. Georgia
A view of Atlanta’s skyline from Lake Meer in Piedmont Park.
– Decrease from 2016 to 2020: 15.0%
– Employer cost for workers’ compensation, 2020: $0.94 per $100 of covered wages
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#41. Louisiana
An aerial view of New Orleans from across the Mississippi River.
– Decrease from 2016 to 2020: 15.8%
– Employer cost for workers’ compensation, 2020: $1.34 per $100 of covered wages
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#40. Maine
The waterfront with ferry’s docked in Portland.
– Decrease from 2016 to 2020: 16.2%
– Employer cost for workers’ compensation, 2020: $1.24 per $100 of covered wages
Sandra Burm // Shutterstock
#39. Minnesota
A street view of downtown Stillwater.
– Decrease from 2016 to 2020: 17.1%
– Employer cost for workers’ compensation, 2020: $0.98 per $100 of covered wages
Real Window Creative // Shutterstock
#38. Delaware
An aerial view of downtown Wilmington.
– Decrease from 2016 to 2020: 17.7%
– Employer cost for workers’ compensation, 2020: $1.22 per $100 of covered wages
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#37. Nebraska
Omaha as viewed from afar at night.
– Decrease from 2016 to 2020: 18.5%
– Employer cost for workers’ compensation, 2020: $1.02 per $100 of covered wages
f11photo // Shutterstock
#36. New Jersey
An aerial view of Jersey City at sunset.
– Decrease from 2016 to 2020: 18.9%
– Employer cost for workers’ compensation, 2020: $1.28 per $100 of covered wages
Sean Pavone // Shutterstock
#35. Pennsylvania
The Pittsburgh skyline as viewed from the hills.
– Decrease from 2016 to 2020: 19.4%
– Employer cost for workers’ compensation, 2020: $1.19 per $100 of covered wages
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#34. Virginia
The skyline of Richmond at sunset.
– Decrease from 2016 to 2020: 19.6%
– Employer cost for workers’ compensation, 2020: $0.61 per $100 of covered wages
James Kirkikis // Shutterstock
#33. Connecticut
A sailboat moored in front of a luxury waterfront estate in Greenwich.
– Decrease from 2016 to 2020: 20.1%
– Employer cost for workers’ compensation, 2020: $1.01 per $100 of covered wages
Trong Nguyen // Shutterstock
#32. Arkansas
A scenic suburb in Ozark.
– Decrease from 2016 to 2020: 20.7%
– Employer cost for workers’ compensation, 2020: $0.63 per $100 of covered wages
Roschetzky Photography // Shutterstock
#31. Texas
An aerial view of Austin and Lady Bird Lake.
– Decrease from 2016 to 2020: 20.9%
– Employer cost for workers’ compensation, 2020: $0.46 per $100 of covered wages
Jess Kraft // Shutterstock
#30. Oregon
Astoria, seen overlooking the Astoria Megler Bridge as it crosses the Columbia River.
– Decrease from 2016 to 2020: 21.1%
– Employer cost for workers’ compensation, 2020: $0.89 per $100 of covered wages
GagliardiPhotography // Shutterstock
#29. New York
A cityscape view of Lower Manhattan in New York CIty.
– Decrease from 2016 to 2020: 21.4%
– Employer cost for workers’ compensation, 2020: $1.29 per $100 of covered wages
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#28. Indiana
An aerial view of Monument Circle in Indianapolis.
– Decrease from 2016 to 2020: 21.5%
– Employer cost for workers’ compensation, 2020: $0.64 per $100 of covered wages
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#27. West Virginia
Charleston’s skyline as viewed from across a river at sunset.
– Decrease from 2016 to 2020: 21.6%
– Employer cost for workers’ compensation, 2020: $1.28 per $100 of covered wages
FotosForTheFuture // Shutterstock
#26. Florida
An aerial view of Boca Raton.
– Decrease from 2016 to 2020: 21.6%
– Employer cost for workers’ compensation, 2020: $1.14 per $100 of covered wages
turtix // Shutterstock
#25. New Mexico
Residential suburbs in Albuquerque.
– Decrease from 2016 to 2020: 21.9%
– Employer cost for workers’ compensation, 2020: $1.14 per $100 of covered wages
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#24. Kentucky
Louisville’s downtown skyline at night.
– Decrease from 2016 to 2020: 21.9%
– Employer cost for workers’ compensation, 2020: $0.80 per $100 of covered wages
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#23. Kansas
Buildings on the river in Witchita with bright lights.
– Decrease from 2016 to 2020: 22.1%
– Employer cost for workers’ compensation, 2020: $0.89 per $100 of covered wages
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#22. Wisconsin
Downtown Madison and its reflection in a body of water.
– Decrease from 2016 to 2020: 22.9%
– Employer cost for workers’ compensation, 2020: $1.32 per $100 of covered wages
Sean Pavone // Shutterstock
#21. Vermont
An aerial view of multicolored trees in Montpelier during autumn.
– Decrease from 2016 to 2020: 23.4%
– Employer cost for workers’ compensation, 2020: $1.39 per $100 of covered wages
Gary R Ennis Photos // Shutterstock
#20. Michigan
Downtown Traverse City during fall.
– Decrease from 2016 to 2020: 23.8%
– Employer cost for workers’ compensation, 2020: $0.61 per $100 of covered wages
TLF Images // Shutterstock
#19. Oklahoma
US Route 66 in Oklahoma.
– Decrease from 2016 to 2020: 24.0%
– Employer cost for workers’ compensation, 2020: $1.06 per $100 of covered wages
Hank Shiffman // Shutterstock
#18. South Dakota
The western suburbs of Rapid City.
– Decrease from 2016 to 2020: 24.2%
– Employer cost for workers’ compensation, 2020: $0.92 per $100 of covered wages
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#17. Alabama
The downtown Mobile skyline at sunset.
– Decrease from 2016 to 2020: 24.3%
– Employer cost for workers’ compensation, 2020: $0.78 per $100 of covered wages
eurobanks // Shutterstock
#16. Maryland
Pedestrians strolling on a boardwalk in Ocean City.
– Decrease from 2016 to 2020: 24.9%
– Employer cost for workers’ compensation, 2020: $0.81 per $100 of covered wages
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#15. Montana
Buildings in Billings with scenic hills in the background.
– Decrease from 2016 to 2020: 25.0%
– Employer cost for workers’ compensation, 2020: $1.64 per $100 of covered wages
Lauren Orr // Shutterstock
#14. Colorado
Mountain views in downtown Telluride.
– Decrease from 2016 to 2020: 25.3%
– Employer cost for workers’ compensation, 2020: $0.76 per $100 of covered wages
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#13. Iowa
An aerial view of Iowa City’s urban center.
– Decrease from 2016 to 2020: 26.0%
– Employer cost for workers’ compensation, 2020: $1.14 per $100 of covered wages
Marc Cappelletti // Shutterstock
#12. Alaska
Boats and buildings in Sitka.
– Decrease from 2016 to 2020: 26.3%
– Employer cost for workers’ compensation, 2020: $1.74 per $100 of covered wages
DiegoMariottini // Shutterstock
#11. Illinois
Skyscrapers and Lake Michigan in Chicago.
– Decrease from 2016 to 2020: 26.7%
– Employer cost for workers’ compensation, 2020: $0.85 per $100 of covered wages
Wangkun Jia // Shutterstock
#10. New Hampshire
City Hall in downtown Concord.
– Decrease from 2016 to 2020: 27.2%
– Employer cost for workers’ compensation, 2020: $0.82 per $100 of covered wages
Jason Finn // Shutterstock
#9. Utah
Homes in Highland in a prime neighborhood with mountain and sky views.
– Decrease from 2016 to 2020: 27.7%
– Employer cost for workers’ compensation, 2020: $0.65 per $100 of covered wages
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#8. Ohio
Buildings in downtown Columbus at night.
– Decrease from 2016 to 2020: 27.8%
– Employer cost for workers’ compensation, 2020: $0.68 per $100 of covered wages
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#7. Wyoming
Buildings in Casper at night.
– Decrease from 2016 to 2020: 28.1%
– Employer cost for workers’ compensation, 2020: $1.78 per $100 of covered wages
Rigucci // Shutterstock
#6. California
The San Diego skyline, as viewed from Point Loma Island.
– Decrease from 2016 to 2020: 28.5%
– Employer cost for workers’ compensation, 2020: $1.45 per $100 of covered wages
Nolichuckyjake // Shutterstock
#5. Tennessee
The intersection of Market and Commerce in downtown Johnson City.
– Decrease from 2016 to 2020: 28.8%
– Employer cost for workers’ compensation, 2020: $0.64 per $100 of covered wages
Kevin Ruck // Shutterstock
#4. North Carolina
An aerial view of Winston-Salem’s downtown skyline.
– Decrease from 2016 to 2020: 29.8%
– Employer cost for workers’ compensation, 2020: $0.74 per $100 of covered wages
Brandon Burris // Shutterstock
#3. Arizona
A highway leading into downtown Phoenix.
– Decrease from 2016 to 2020: 29.9%
– Employer cost for workers’ compensation, 2020: $0.67 per $100 of covered wages
Max Lindenthaler // Shutterstock
#2. Washington
The Seattle skyline near sundown—featuring the Spack Needle and Mt. Rainier.
– Decrease from 2016 to 2020: 30.7%
– Employer cost for workers’ compensation, 2020: $1.20 per $100 of covered wages
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#1. North Dakota
A movie theater covered in snow in downtown Fargo.
– Decrease from 2016 to 2020: 31.3%
– Employer cost for workers’ compensation, 2020: $1.00 per $100 of covered wages
This story originally appeared on Simply Business and was produced and
distributed in partnership with Stacker Studio.
