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If you’re an Idaho employer looking to protect both your business and your team, you’re in the right place. At Beyond, we provide the essential information you need to understand how workers’ compensation works and how to stay compliant.
In Idaho, employers with one or more full-time, part-time, seasonal, or occasional employees are generally required to carry workers’ compensation insurance, unless the employment is specifically exempt by law. Coverage must be in effect before an employee begins work.
If you use contract labor (whether the contract is verbal or written), those workers may be considered employees under Idaho’s workers’ compensation law. To stay compliant, it’s best to consult an Idaho Industrial Commission Employer Compliance representative, since coverage determinations can be handled case-by-case.
Out-of-state / remote work note: If you’re an out-of-state employer and have an employee telecommuting from their home in Idaho, that worker must be covered by a workers’ compensation policy that is endorsed for Idaho — even if the employee is part-time, seasonal, or occasional.
Idaho law includes specific categories of employment that may be exempt from mandatory workers’ compensation coverage (unless coverage is elected), such as household domestic service, casual employment, and employment of outworkers.
Idaho also allows certain owners and executives to be exempt under specific conditions. Common examples include the owner of a sole proprietorship, working members of a partnership or LLC, and certain corporate officers who meet ownership and governance requirements.
Family member exemption: Employment of family members dwelling in the employer’s household may be exempt only in limited circumstances — generally applying to sole proprietorships and single-member LLCs taxed as a sole proprietorship.
Important: Workers who are telecommuting from home generally do not meet the established criteria for the “casual employment/outworkers” exemptions. Because exemptions can be nuanced, confirm your situation with the IIC or a licensed insurance professional.
Workers’ compensation in Idaho provides benefits for job-related injuries and occupational diseases. Coverage typically includes:
Medical care related to the work injury or illness
Wage-loss (time-loss) benefits when a physician confirms the worker cannot work due to the injury or disease
Disability benefits (temporary or permanent, depending on the situation)
Death and survivor benefits in qualifying cases
Medical benefits are available immediately, but Idaho generally has a five-day waiting period before wage-loss benefits are payable, with limited exceptions (for example, inpatient hospitalization, or when time loss exceeds a specified threshold).
Idaho employers can obtain workers’ compensation coverage through several options:
Private insurance carriers (Idaho has hundreds of authorized insurers)
Idaho State Insurance Fund (SIF)
Assigned Risk Pool (for employers unable to obtain coverage through private insurance or SIF). The pool is administered by NCCI — employers typically work through an insurance agent or may contact NCCI for assigned risk information.
Self-insurance (available to qualifying employers with large payrolls and financial capacity; requires approval from the Idaho Industrial Commission)
Premium costs vary based on payroll and the type of work performed.
Operating without required workers’ compensation coverage can be costly. If an employee is injured while you’re uninsured, you may be personally liable for workers’ compensation benefits owed (including medical and disability benefits). Idaho also provides for an additional 10% penalty on the amount of medical and disability benefits due because the employer was uninsured at the time of injury or occupational disease.
Beyond that, employers who operate without workers’ compensation insurance may be subject to a penalty of $2 per day per employee or $25 per day (whichever is greater), and the Idaho Industrial Commission may seek legal action to prohibit the employer from operating until compliance is achieved.
Employees should notify their employer as soon as possible after any work-related injury or occupational illness — even if it seems minor. Idaho law requires employers to report work injuries to the Idaho Industrial Commission by completing a First Report of Injury (FROI).
If you’re unsure what must be reported or how to complete the filing correctly, contact the Idaho Industrial Commission Employer Compliance team for guidance.
In Idaho, medical care rules depend on the situation. In an emergency, the injured worker may seek immediate treatment at the nearest appropriate facility.
For ongoing treatment, the employer/insurer may have the right to direct care or require treatment within specific parameters. If a worker wants to change treating providers, they may need approval (or to follow the process outlined by the Idaho Industrial Commission). For the most accurate steps based on the claim type, consult the Idaho Industrial Commission’s injured worker guidance and the applicable Idaho statutes.
Having a policy in place before hiring your first employee is essential for legal compliance and peace of mind. Workers’ compensation not only protects your employees if something goes wrong – it also helps shield your business from costly lawsuits.
Have questions about getting covered? The team at Beyond is ready to help.
