Importantly, in the state of Arkansas, small business employers with three or more (3+) employees are required by state law to have Workers’ Compensation insurance coverage for their employees or file and be approved to self-insure.

Obviously, while there are exceptions to the three plus (3+) employee requirement, any employers with fewer than three employees should check with state authorities before making any assumptions about Arkansas’ Workers’ Comp regulations.  Consequently, Small Business employers that might have doubts may request information from the Arkansas Commission’s Information Officer or Operations/Compliance Division, or the Arkansas Commission Legal Advisor Division.

Of course, Workers’ Compensation Insurance is purchased by the Small Business Employer – it is NOT paid for by employees or CANNOT be deducted from the employees’ payroll.

Finally, benefits are provided through a Workers’ Compensation insurance policy, or in very rare cases by the employer’s state approved self-insured arrangement.  In essence, any other arrangement by the small business employer or their representative may constitute fraud.