Arkansas

Generally employers in Arkansas with three or more employees are required by law to have workers compensation insurance coverage for their employees. However, there are some exceptions, so it is advised that businesses check with their insurance agent or the Arkansas Workers Compensation Commission.

Farm laborers, real estate agents or employers who have two or fewer employees, may be exempt from carrying Arkansas workers compensation insurance.

Sole proprietors or partners of a partnership who are devoted full-time to the proprietorship or partnership are presumed to be "employees" for workers compensation insurance purposes and subject to coverage for themselves. They can apply for a certificate of "non-cover" with the Arkansas Workers Compensation Division.

Any business that fails to comply with workers compensation laws may be subject to penalties by the state, and may also lose protections afforded them by workers compensation insurance. Making false statements regarding the payment of benefits is considered a Class D Felony and can bring a fine of up to $10,000.00.