Massachusetts Laws: The Penalties of Passing on Workers Compensation

As an employer in the state of Massachusetts, workers compensation is a critical part of your business insurance package. If you took our workers compensation quiz last week, you now understand that this policy is MANDATORY. If employers DO decide to operate without this insurance, there will be consequences.

There are a number of penalties that employers may face when they fail to obtain a workers’ compensation policy. Civil fines and/or criminal penalties may ensue. Consequences include:

• Imprisonment
• A STOP WORK order issued to the business
• Civil fines that may be up to $250 a day
• Criminal penalties may include a fine of up to $1500 and/or up to a year of imprisonment

Additionally, according to, there was a recent change. The change states:

“In addition to being subject to the civil penalties herein provided, an employer who fails to provide for insurance or self insurance as required by this chapter or knowingly misclassify employees, to avoid higher premium rates, will be immediately debarred from bidding or participating in any state or municipal funded contracts for a period of three (3) years and shall when applicable be subject to penalties provided for in (MGL c. 152) § fourteen (14)”.

As you can see, the consequences are NOT worth it! At Wolpert Insurance, we encourage all business owners in the state of Mass to purchase a reliable and affordable Massachusetts workers compensation policy. If you have any questions or concerns about the consequences and/or how to obtain the right workers compensation for your business, do not hesitate to call our agency at your earliest convenience. One of our experts would be happy to discuss this coverage with you!