Vermont Workers Compensation - laws,rules,statutes,state contacts,detailed policy information

State: Vermont

Authority/Rating Bureau: NCCI, National Council on Compensation Insurance

Compulsory: Yes

Private Insurance: Allowed

Self-Insurance: Allowed

State Fund: None

Assigned Risk: Administered by NCCI. Contact the Vermont Department of Insurance for information.

Numerical Exceptions: None. Unless you have been approved to self-insure by the Department of Labor, you must buy workers' compensation insurance if you hire one or more employees on a full or part time basis in Vermont, or you hire employees outside the state but they work for you in Vermont.

Individual Waivers Allowed: Yes, limited basis

Sole Proprietor: Excluded from coverage/may elect to be included - If included, the sole proprietors workers compensation payroll will be set at a flat amount of 34,000 as of 4-1-7.

Partners: Excluded from coverage/may elect to be included - If included, the partners workers compensation payroll will be set at a flat amount of 34,000 as of 4-1-7.

Corporate Officers: Included in coverage/may elect to be exempt - If included in coverage, corporate officers workers compensation payroll is banded between the min/max of 16,692/135,200 as of 4-1-7.

LLC Members: Treated same as corporate officers.

Contractors: If you use independent contractors in your business, make sure you agree up front and in writing who is responsible for carrying workers' compensation insurance. You will be responsible for the insurance if the independent contractor (1) doesn't have coverage, or (2) does not meet the definition of a contractor under law. It is important to understand that the independent contractor needs coverage any time they have a worker on the job, even temporarily.

Does the contractor have coverage?
- The law does not require a single individual acting as a contractor to carry workers' compensation insurance, but any contractor with one or more employees must provide coverage for those employees. Contractors who carry insurance should be able to show you a document called a certificate of workers' compensation insurance as verification, as distinguished from many other types of certificates of insurance. Make sure the period of time covered by the certificate is sufficient to complete the project. If you have any reason to question the certificate, you should call the insurance company that issued it.
  
  A word of caution: If the coverage lapses before a project is finished, the contractor must renew it, or else responsibility for the coverage will default to you. You would not necessarily know about any lapse, but you would then be liable for any penalties connected to failure to provide coverage. (See box regarding penalties.) Since these penalties can be serious, to be safe, you may simply want to purchase coverage for all your contractors while they are on the job. This may also be wise if you have any uncertainty about whether someone qualifies by definition as an independent contractor.
Does the independent contractor qualify by definition?
- Calling someone a contractor does not automatically relieve you of the responsibility to carry workers' compensation insurance. The law places the burden of proof on the employer to show that the injured person qualifies as an independent contractor vs. an employee. A good rule of thumb is to regard anyone you pay as an employee. However, the law does look at specific circumstances in favor of one definition or the other. In a contested case, the following test factors would influence a courts decision:

The person working for you is more likely to be regarded as your employee (vs. a contractor) if:

You have the right to control the way the work is done
You supply the tools and equipment for the work
You direct the scheduling of the work
You pay according to time worked, rather than cost per job
The work being performed is the type normally carried out by an employee in the usual course of business
The work activities are an integral part of the employers regular business

The person working for you is more likely to be regarded as a contractor (rather than an employee) if:

The person is engaged in a distinct occupation or business of his or her own
The work being performed is different from your normal line of business

Special Notes: Generally, everyone -- including officers of corporations -- is covered by the Vermont Workers compensation Act. Some exceptions are as follows:

If you are the sole proprietor or partner of an unincorporated business, you are not covered, and you are not required to have coverage, but you may choose to have it.
Officers of a corporation may choose to be excluded from workers' compensation coverage, but must obtain prior approval from the Vermont Department of Labor.
You may choose to include a family member who lives with you. You should make clear to your agent who is to be covered when the policy is issued. You do not have to obtain approval from the Vermont Department of Labor.

In addition, the following people are not required to be covered by workers' compensation insurance:

A person whose employment is of a casual nature, and not for the purpose of the employers trade or business.
A person engaged in amateur sports, even if an employer contributes to the support of such sports.
A person engaged in agriculture or farm employment for an employer whose aggregate payroll is less than $2,000 in a calendar year, unless the employer chooses to provide coverage.
Certain elected officials are excluded.
Volunteers.

Regulated By:

Vermont Department of Labor

Division of Workers' Compensation and Safety

National Life Building

Drawer 20

Montpelier, Vermont 05620-3401

(802) 828-2286

Fax: (802) 828-4248

http://www.labor.vermont.gov/Businesses/WorkersCompensation/tabid/114/Default.aspx

Workers Compensation Statute:

http://www.leg.state.vt.us/statutes/sections.cfm?Title=21&Chapter=009

Information on this page is provided only as a reference. While we strive to mantain accurate information on this site please realize workers compensation laws are complicated and subject to change at any time. If you need help with a workers compensation problem or have a specific situation or question please contact our office. Otherwise please consult your states governing authority or an attorney in your state of residency for assistance.

Contact Us:
WORKERS COMPENSATION CONSULTANT
Voice: (573) 999-6948
Fax: (573) 447-4998
email: rks@workcompconsultant.com

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Vermont Workers Compensation Laws

Workers compensaton policy information for the State of Vermont