If your business has employees in the state of Virginia, you’ll need to make sure you adhere to Virginia’s Workers’ Compensation Insurance laws. Workers’ Compensation provides medical and financial benefits for employees who suffer work-related injuries or illnesses or for their survivors in the case of an employee death.

Who needs Workers’ Compensation Insurance in Virginia?

Virginia requires all employers with over two part-time or full-time employees to obtain Workers’ Compensation Insurance. In Virginia, an “employee” is generally defined as any individual who is in the service of an employer under any contract of hire or apprenticeship, written or implied, lawfully or unlawfully employed.

The Virginia Workers’ Compensation Act (WCA) defines all of the requirements for Workers’ Comp in Virginia, and the  Virginia Workers’ Compensation Commission (VWC) monitors, enforces, and administers the program. Ensuring your company is in compliance is critical, as there are serious penalties and fines for those who fail to abide by state regulations.

What employees are covered under Workers’ Compensation in Virginia?

Almost all workers are covered under Workers’ Compensation in Virginia. If you are in the service of another under any contract of hire or apprenticeship, you will likely be eligible for Workers’ Compensation Insurance. 

The following are categories of employees that are eligible for Workers’ Comp coverage:

• Full-time and part-time employees
• Apprentices and interns 
• Minors
• Undocumented workers (with limited Workers’ Compensation benefits)
• Executive officers of corporations
• Sole proprietors and managers of limited liability companies

The following are categories of employees that are generally excluded from Workers’ Comp coverage:

• Independent contractors
• Domestic workers
• Casual workers
• Farm and horticultural laborers (unless the employer regularly has more than three full-time employees)
• Licensed real estate salespeople and brokers

What Workers’ Compensation benefits do employees receive?

Under Workers’ Compensation in Virginia, employers are required to provide the following benefits to employees who are injured in the course of employment:

Medical Benefits

• Employers are required to cover expenses for medical care and treatment including doctor’s visits, hospitalization, physical therapy, any medical tests, prescription drugs, and any prosthetics. 
• Employers must authorize a primary doctor and specialists. 
• Employers must reimburse the injured employee for any travel expenses to and from the authorized doctor or specialist. 

Temporary Total Disability Benefits 

• If an injured employee’s authorized doctor determines that the employee cannot work and collect wages due to the work-related illness or injury, he or she may qualify for temporary total disability (TTD) benefits. 
• TTD benefits are 66 and two-thirds percent of the employee’s average weekly wages prior to the injury. 
• The VWC establishes minimum and maximum benefit amounts, which change yearly. For accidents that occurred between July 1, 2021, and June 30, 2022, the maximum TTD benefit was $1,195 per week, and the minimum benefit amount was $298.75 per week.
• TTD benefits are available for 500 weeks. 

Temporary Partial Disability Benefits

• An authorized physician may determine that an injured employee can return to work with restrictions. In this case, the employee may be eligible for temporary partial disability (TPD) benefits. 
• TPD benefits are 66 and two-thirds percent of the difference between the employee’s average weekly wages prior to the injury and the average wages earned under the new restrictions. 
• The VWC establishes minimum and maximum benefit amounts, which change yearly. For accidents that occurred between July 1, 2021, and June 30, 2022, the maximum TTD benefit was $1,195 per week, and the minimum benefit amount was $298.75 per week.
• TPD benefits are available for 500 weeks. 

Permanent Partial Disability Benefits

• If an employee’s work-related injury or illness reaches maximum medical improvement, he or she may be evaluated to determine a permanent impairment rating. If the employee’s rating is greater than 0 percent, he or she may be eligible for permanent partial disability (PPD) benefits. 
• The WCA maintains a schedule of injuries, which lists out body parts and assigns a number of weeks that benefits will be paid if the particular body part is injured. 
• If an employee loses the complete function of a particular body part, he or she is entitled to receive benefits for the full number of weeks. If the employee experiences only a partial loss, he or she will receive only a portion of the benefits listed. 
• The weekly PPD rate is 66 and two-thirds percent of the average weekly wages.
• The VWC establishes minimum and maximum benefit amounts, which change yearly. For accidents that occurred between July 1, 2021, and June 30, 2022, the maximum PPD benefit was $1,195 per week, and the minimum benefit amount was $298.75 per week.

Permanent Total Disability Benefits

• If the work-related injury or illness is so severe that an employee is permanently unable to work, he or she may be entitled to permanent total disability (PTD) benefits. 
• Compensation shall be rewarded when there is a loss of both hands, arms, feet, legs, eyes, or any two in the same accident. PTD benefits will also be rewarded for total paralysis or severe brain injury that deters employment. 
• The weekly PTD rate is 66 and two-thirds percent of the average weekly wages. 
• The VWC establishes minimum and maximum benefit amounts, which change yearly. For accidents that occurred between July 1, 2021, and June 30, 2022, the maximum PTD benefit was $1,195 per week, and the minimum benefit amount was $298.75 per week.
• PTD benefits may continue for the lifetime of the injured employee without a limit on the total amount.

Vocational Rehabilitation Benefits

In Virginia, an injured employee may be entitled to the following vocational rehabilitation benefits:

• A vocational evaluation
• On-the-job training
• Job coaching
• Job development
• Job placement
• Counseling
• Education
• Retraining 

Death Benefits 

• In the event of a work-related death, employers must pay burial expenses up to $10,000.
• Employers must also provide reasonable transportation expenses up to $1,000.
• The employer shall pay compensation to the employee’s surviving dependents in weekly payments equal to 66 and two-thirds percent of the employee’s average weekly wages. 
• Total dependents, such as an employee’s spouse and children, shall receive benefits for a period of 500 weeks from the date of injury. Benefits stop if a spouse remarries or if a child reaches the age of 18. If a child is a full-time student, benefits continue until the age of 23. If a child is physically or mentally incapacitated from earning a livelihood, benefits continue for the entire 500 weeks regardless of age.
• If the employee had no spouse or children, partial dependents shall receive benefits for a period of 400 weeks. 

What are the penalties for breaking Virginia Workers’ Compensation laws?

Failure to adhere to the Workers’ Compensation laws set out by the WCA can result in significant fines and even imprisonment. In order to avoid any costly penalties, it’s important to consult the WCA or your insurer to ensure you are in compliance. Below are the major ways in which companies can be penalized:

Failure to Secure Coverage

• Employers who fail to secure Workers’ Compensation Insurance shall receive a civil penalty of up to $250 for each day they are uninsured. This penalty is subject to a maximum of $50,000. 
• After a notice of noncompliance, if the employer continues to operate without Workers’ Compensation Insurance for 15 days, they may face an order prohibiting them from operating their business.
• If an employer is intentionally non-compliant, they may be found guilty of a class 2 misdemeanor and receive a fine of $1,000, six months in prison, or both. 

Failure to Report

• Any employer who fails to provide reports in a timely manner shall be assessed a civil penalty of up to $500 for each failure.
• If it is determined that the failure to report is intentional, the employer may receive a civil penalty of up to $5,000. 

Failure to Pay Benefits 

• If an employer fails to pay benefits within 14 days after the due date, they may face a 20 percent penalty.

Fraud 

• Any employer who knowingly files false or fraudulent claims will face penalties for a class 6 felony, including up to five years in prison. 
• Alternatively, a class 6 felony conviction can also include jail time for up to 12 months and a fine of up to $2,500.

How much does Workers’ Compensation Insurance cost in Virginia?

According to the National Academy of Social Insurance Workers’ Compensation Report (November 2020), the average employer cost for Workers’ Compensation in Virginia was $0.74 per $100 of covered wages. This figure is estimated across all insurers and all industries, so the cost to your particular business may vary.

How does the Workers’ Compensation claims process work in Virginia?

An injured employee must give immediate notice to their employer about their injury. If notice is not given within 30 days, the employee may not be eligible to receive Workers’ Compensation benefits. Following the notice, employers are required to file a First Report of Injury within 10 days. 

Once an injured employee files a claim, the VWC sends out an Award order to all parties. If a claim is denied, a hearing may be scheduled. A written decision, otherwise known as a Judicial Opinion, is mailed to all involved parties after a case is heard. Any party has 30 days from the date the Judicial opinion is issued to file an appeal with the Virginia Workers’ Compensation Commission. 

Virginia Workers’ Compensation Insurance Resources

For more information on Virginia Workers’ Compensation laws and requirements, please visit the following resources:

• Virginia Workers’ Compensation Commission
• VWC Employer FAQ