Which States Require Workers' Compensation Predesignations?

What Are Predesignations?

Predesignations are official documents that identify a company's workers' compensation carrier before a claim is filed. States that require them aim to streamline claims, reduce fraud, and ensure timely coverage. Employers must submit these documents within a specific time frame after hiring or before starting work.

States with Predesignation Requirements

As of 2024, the following states enforce predesignation rules:

• California – requires a predesignation within 30 days of an employee's start date.
• Colorado – mandates predesignation before the employee's first day of work.
• Florida – requires predesignation for all employers with 10 or more employees.
• Illinois – requires predesignation within 30 days of hiring.
• Indiana – requires predesignation for employers with 10+ employees.
• Kentucky – mandates predesignation for all covered workers.
• Louisiana – requires predesignation within 30 days of the employee's start date.
• Massachusetts – requires predesignation for all employers.
• Michigan – requires predesignation within 30 days of hiring.
• Missouri – requires predesignation within 30 days of hiring.
• New York – requires predesignation for all employers with 10+ employees.
• North Carolina – requires predesignation within 30 days of hiring.
• Ohio – requires predesignation for all employers with 10+ employees.
• South Carolina – requires predesignation for all employers with 10+ employees.
• Texas – requires predesignation for all employers with 10+ employees.
• Virginia – requires predesignation for all employers with 10+ employees.
• Washington – requires predesignation for all employers with 10+ employees.

How to Submit a Predesignation

Employers typically submit predesignations electronically through state insurance department portals. The submission must include:

• Employer identification number.
• Employee name and Social Security number.
• Effective date of coverage.
• Carrier name and policy number.

Failure to submit can result in penalties, denial of claims, or requirement to pay workers' compensation fees out of pocket.

Compliance Tips

1. Verify your state's specific time frame and documentation format.2. Keep a digital record of all predesignations for audit purposes.3. Use automated payroll systems that can trigger predesignation uploads when new hires are added.4. Regularly review your state's insurance department website for updates or changes to the rules.

When Predesignations Are Not Required

States that do not mandate predesignations include Arizona, Nevada, and Oklahoma, among others. However, even if not required, submitting a predesignation can still expedite claims processing and reduce administrative costs.

Conclusion

Employers operating in states listed above must proactively submit predesignations to avoid penalties and ensure smooth claims handling. Staying current on each state's regulations protects both the business and its employees.