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States where employer costs for workers' comp have decreased the most

·Aubrey Jane McClaine

Andrey_Popov // Shutterstock
Andrey_Popov // Shutterstock
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When workers are injured on the job, workers' compensation programs help pay for medical care, lost wages, and even death benefits. These programs may also cover long-term medical conditions resulting from work-related exposure to harmful substances such as asbestos and pesticides. Most states—but not all—require employers to provide workers' compensation benefits to employees.

Costs for workers' compensation insurance are declining nationwide. From 2016 to 2020, the total amount spent by employers on workers' compensation insurance fell from $100.2 billion to $93 billion per year. To better understand how worker's compensation insurance costs have changed, Simply Business used a 2022 data release from the nonprofit National Academy of Social Insurance to rank the states where employer costs for workers' compensation insurance decreased the most from 2016 to 2020. Employer costs are reported per $100 of covered wages.

Nationally, the vast majority of workers' compensation premiums are paid by employers. The amount they contributed declined by 20.7% overall, but figures varied widely from state to state between 2016 through 2020, according to the study. Employer costs did not rise in any states between that period—Hawaii is the only state where costs remained the same. Nevada's standardized employer costs decreased the least during that period, by 5.8%, while North Dakota's decreased the most, at 31.3%.

Reasons for the state-by-state decreases vary, including whether people who contracted COVID-19 on the job were eligible for benefits and changes to laws around medical and insurance policies.

One factor driving costs down in 2020 was due to the COVID-19 pandemic's impact on low-wage workers, who traditionally have higher workers' compensation costs, according to the National Academy of Social Insurance. These lower wage workers disproportionately lost their jobs during early 2020, reducing the potential for payouts from insurance policies. As those jobs return, they may push premiums higher.

The coastline and luxury hotels and apartments in Honolulu.

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1 / 51

#51. Hawaii

- No change in costs when comparing 2016 to 2020
- Employer cost for workers' compensation, 2020: $1.69 per $100 of covered wages

An aerial view of Carson City, Nevada.

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2 / 51

#50. Nevada

- Decrease from 2016 to 2020: 5.8%
- Employer cost for workers' compensation, 2020: $0.92 per $100 of covered wages

The St. Louis Gateway Arch in Missouri.

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3 / 51

#49. Missouri

- Decrease from 2016 to 2020: 9.3%
- Employer cost for workers' compensation, 2020: $1.10 per $100 of covered wages

A scenic river view and waterfront houses, in North Myrtle Beach in South Carolina.

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4 / 51

#48. South Carolina

- Decrease from 2016 to 2020: 11.1%
- Employer cost for workers' compensation, 2020: $1.55 per $100 of covered wages

Boise, Idaho, as viewed from afar, with trees in the foreground.

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#47. Idaho

- Decrease from 2016 to 2020: 13.8%
- Employer cost for workers' compensation, 2020: $1.47 per $100 of covered wages

Downtown Jackson, Mississippi, at sunset.

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#46. Mississippi

- Decrease from 2016 to 2020: 14.1%
- Employer cost for workers' compensation, 2020: $1.11 per $100 of covered wages

The historic street clock in Wellesley, Massachusetts.

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#45. Massachusetts

- Decrease from 2016 to 2020: 14.1%
- Employer cost for workers' compensation, 2020: $0.65 per $100 of covered wages

Building, boats, and docks at old harbor in Newport, Rhode Island.

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8 / 51

#44. Rhode Island

- Decrease from 2016 to 2020: 14.8%
- Employer cost for workers' compensation, 2020: $0.97 per $100 of covered wages

The Washington Monument and Reflecting Pool at dawn.

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#43. Washington DC

- Decrease from 2016 to 2020: 14.9%
- Employer cost for workers' compensation, 2020: $0.41 per $100 of covered wages

A view of Atlanta's skyline from Lake Meer in Piedmont Park.

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#42. Georgia

- Decrease from 2016 to 2020: 15.0%
- Employer cost for workers' compensation, 2020: $0.94 per $100 of covered wages

An aerial view of New Orleans from across the Mississippi River.

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#41. Louisiana

- Decrease from 2016 to 2020: 15.8%
- Employer cost for workers' compensation, 2020: $1.34 per $100 of covered wages

The waterfront with ferry's docked in Portland.

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#40. Maine

- Decrease from 2016 to 2020: 16.2%
- Employer cost for workers' compensation, 2020: $1.24 per $100 of covered wages

A street view of downtown Stillwater.

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13 / 51

#39. Minnesota

- Decrease from 2016 to 2020: 17.1%
- Employer cost for workers' compensation, 2020: $0.98 per $100 of covered wages

An aerial view of downtown Wilmington.

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14 / 51

#38. Delaware

- Decrease from 2016 to 2020: 17.7%
- Employer cost for workers' compensation, 2020: $1.22 per $100 of covered wages

Omaha as viewed from afar at night.

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#37. Nebraska

- Decrease from 2016 to 2020: 18.5%
- Employer cost for workers' compensation, 2020: $1.02 per $100 of covered wages

An aerial view of Jersey City at sunset.

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16 / 51

#36. New Jersey

- Decrease from 2016 to 2020: 18.9%
- Employer cost for workers' compensation, 2020: $1.28 per $100 of covered wages

The Pittsburgh skyline as viewed from the hills.

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17 / 51

#35. Pennsylvania

- Decrease from 2016 to 2020: 19.4%
- Employer cost for workers' compensation, 2020: $1.19 per $100 of covered wages

The skyline of Richmond at sunset.

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#34. Virginia

- Decrease from 2016 to 2020: 19.6%
- Employer cost for workers' compensation, 2020: $0.61 per $100 of covered wages

A sailboat moored in front of a luxury waterfront estate in Greenwich.

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19 / 51

#33. Connecticut

- Decrease from 2016 to 2020: 20.1%
- Employer cost for workers' compensation, 2020: $1.01 per $100 of covered wages

A scenic suburb in Ozark.

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20 / 51

#32. Arkansas

- Decrease from 2016 to 2020: 20.7%
- Employer cost for workers' compensation, 2020: $0.63 per $100 of covered wages

An aerial view of Austin and Lady Bird Lake.

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21 / 51

#31. Texas

- Decrease from 2016 to 2020: 20.9%
- Employer cost for workers' compensation, 2020: $0.46 per $100 of covered wages

Astoria, seen overlooking the Astoria Megler Bridge as it crosses the Columbia River.

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22 / 51

#30. Oregon

- Decrease from 2016 to 2020: 21.1%
- Employer cost for workers' compensation, 2020: $0.89 per $100 of covered wages

A cityscape view of Lower Manhattan in New York CIty.

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#29. New York

- Decrease from 2016 to 2020: 21.4%
- Employer cost for workers' compensation, 2020: $1.29 per $100 of covered wages

An aerial view of Monument Circle in Indianapolis.

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#28. Indiana

- Decrease from 2016 to 2020: 21.5%
- Employer cost for workers' compensation, 2020: $0.64 per $100 of covered wages

Charleston's skyline as viewed from across a river at sunset.

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#27. West Virginia

- Decrease from 2016 to 2020: 21.6%
- Employer cost for workers' compensation, 2020: $1.28 per $100 of covered wages

An aerial view of Boca Raton.

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26 / 51

#26. Florida

- Decrease from 2016 to 2020: 21.6%
- Employer cost for workers' compensation, 2020: $1.14 per $100 of covered wages

Residential suburbs in Albuquerque.

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27 / 51

#25. New Mexico

- Decrease from 2016 to 2020: 21.9%
- Employer cost for workers' compensation, 2020: $1.14 per $100 of covered wages

Louisville's downtown skyline at night.

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#24. Kentucky

- Decrease from 2016 to 2020: 21.9%
- Employer cost for workers' compensation, 2020: $0.80 per $100 of covered wages

Buildings on the river in Witchita with bright lights.

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#23. Kansas

- Decrease from 2016 to 2020: 22.1%
- Employer cost for workers' compensation, 2020: $0.89 per $100 of covered wages

Downtown Madison and its reflection in a body of water.

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#22. Wisconsin

- Decrease from 2016 to 2020: 22.9%
- Employer cost for workers' compensation, 2020: $1.32 per $100 of covered wages

An aerial view of multicolored trees in Montpelier during autumn.

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31 / 51

#21. Vermont

- Decrease from 2016 to 2020: 23.4%
- Employer cost for workers' compensation, 2020: $1.39 per $100 of covered wages

Downtown Traverse City during fall.

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32 / 51

#20. Michigan

- Decrease from 2016 to 2020: 23.8%
- Employer cost for workers' compensation, 2020: $0.61 per $100 of covered wages

US Route 66 in Oklahoma.

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#19. Oklahoma

- Decrease from 2016 to 2020: 24.0%
- Employer cost for workers' compensation, 2020: $1.06 per $100 of covered wages

The western suburbs of Rapid City.

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34 / 51

#18. South Dakota

- Decrease from 2016 to 2020: 24.2%
- Employer cost for workers' compensation, 2020: $0.92 per $100 of covered wages

The downtown Mobile skyline at sunset.

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#17. Alabama

- Decrease from 2016 to 2020: 24.3%
- Employer cost for workers' compensation, 2020: $0.78 per $100 of covered wages

Pedestrians strolling on a boardwalk in Ocean City.

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36 / 51

#16. Maryland

- Decrease from 2016 to 2020: 24.9%
- Employer cost for workers' compensation, 2020: $0.81 per $100 of covered wages

Buildings in Billings with scenic hills in the background.

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37 / 51

#15. Montana

- Decrease from 2016 to 2020: 25.0%
- Employer cost for workers' compensation, 2020: $1.64 per $100 of covered wages

Mountain views in downtown Telluride.

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38 / 51

#14. Colorado

- Decrease from 2016 to 2020: 25.3%
- Employer cost for workers' compensation, 2020: $0.76 per $100 of covered wages

An aerial view of Iowa City's urban center.

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#13. Iowa

- Decrease from 2016 to 2020: 26.0%
- Employer cost for workers' compensation, 2020: $1.14 per $100 of covered wages

Boats and buildings in Sitka.

Marc Cappelletti // Shutterstock

40 / 51

#12. Alaska

- Decrease from 2016 to 2020: 26.3%
- Employer cost for workers' compensation, 2020: $1.74 per $100 of covered wages

Skyscrapers and Lake Michigan in Chicago.

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41 / 51

#11. Illinois

- Decrease from 2016 to 2020: 26.7%
- Employer cost for workers' compensation, 2020: $0.85 per $100 of covered wages

City Hall in downtown Concord.

Wangkun Jia // Shutterstock

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#10. New Hampshire

- Decrease from 2016 to 2020: 27.2%
- Employer cost for workers' compensation, 2020: $0.82 per $100 of covered wages

Homes in Highland in a prime neighborhood with mountain and sky views.

Jason Finn // Shutterstock

43 / 51

#9. Utah

- Decrease from 2016 to 2020: 27.7%
- Employer cost for workers' compensation, 2020: $0.65 per $100 of covered wages

Buildings in downtown Columbus at night.

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44 / 51

#8. Ohio

- Decrease from 2016 to 2020: 27.8%
- Employer cost for workers' compensation, 2020: $0.68 per $100 of covered wages

Buildings in Casper at night.

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45 / 51

#7. Wyoming

- Decrease from 2016 to 2020: 28.1%
- Employer cost for workers' compensation, 2020: $1.78 per $100 of covered wages

The San Diego skyline, as viewed from Point Loma Island.

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46 / 51

#6. California

- Decrease from 2016 to 2020: 28.5%
- Employer cost for workers' compensation, 2020: $1.45 per $100 of covered wages

The intersection of Market and Commerce in downtown Johnson City.

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47 / 51

#5. Tennessee

- Decrease from 2016 to 2020: 28.8%
- Employer cost for workers' compensation, 2020: $0.64 per $100 of covered wages

An aerial view of Winston-Salem's downtown skyline.

Kevin Ruck // Shutterstock

48 / 51

#4. North Carolina

- Decrease from 2016 to 2020: 29.8%
- Employer cost for workers' compensation, 2020: $0.74 per $100 of covered wages

A highway leading into downtown Phoenix.

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49 / 51

#3. Arizona

- Decrease from 2016 to 2020: 29.9%
- Employer cost for workers' compensation, 2020: $0.67 per $100 of covered wages

The Seattle skyline near sundown—featuring the Spack Needle and Mt. Rainier.

Max Lindenthaler // Shutterstock

50 / 51

#2. Washington

- Decrease from 2016 to 2020: 30.7%
- Employer cost for workers' compensation, 2020: $1.20 per $100 of covered wages

A movie theater covered in snow in downtown Fargo.

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51 / 51

#1. North Dakota

- Decrease from 2016 to 2020: 31.3%
- Employer cost for workers' compensation, 2020: $1.00 per $100 of covered wages

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