Serves as the neutral body for resolving workers’ comp disputes.
Legal Advice
WCD cannot provide legal advice or referrals to private attorneys. It is a neutral body that decides workers' comp disputes. Contact an attorney to seek legal advice to learn about rights and responsibilities under Iowa law.
Workers' Compensation Liability Insurance
Iowa law requires most employers to either:
Have workers' compensation liability insurance or
Register as a self-insured employer.
Mandatory Reporting
Employers, insurance carriers, and third-party administrators must follow the reporting requirements under Iowa law about work injuries and payment of benefits.
Verification of Employer Workers' Compensation Insurance Coverage
WCD contracts with the National Council on Compensation Insurance to verify whether an employer has workers' compensation insurance.
Nonelection of Workers' Compensation or Employers' Liability Insurance Coverage
Iowa law allows for a proprietor, limited liability company member, limited liability partner, or partner to make a nonelection of workers' compensation or employers' liability insurance coverage.
Rejection of Workers' Compensation or Employers' Liability Insurance Coverage
Iowa law allows for certain corporate officers to make a rejection of workers' compensation or employers' liability insurance coverage.
Frequently Asked Questions
Iowa workers' compensation law covers employees in most employment relationships. This requires most employers to carry workers' comp insurance. Employers may apply to the Iowa Insurance Commissioner to become self-insured.
Employers that do not carry workers' comp insurance may receive criminal or civil penalties. They will also lose the protection of workers' comp laws. This means that if an employee gets injured and sues the employer, the employer could be liable for the full amount of damages under regular tort law, instead of the limited compensation provided by workers' comp.
In Iowa, workers' compensation law doesn't apply to independent contractors. Just because a contract labels someone as an independent contractor it doesn't mean they are one if they function more like an employee. Specific circumstances determine if a worker is an employee or an independent contractor for workers' comp purposes. The agency evaluates these on a case-by-case basis.
Certain employers and their employees are exempt from workers’ compensation coverage. The exemptions are complex. Do not use only this website to determine if a business is exempt. For guidance about the rights and responsibilities of a business under Iowa law, consult with an attorney.
In general, individuals eligible for workers' comp under federal law are exempt. Limited exemptions apply to those employed in agriculture or by a relative. The law also exempts casual employment that isn't related to the employer's business, if the employee works in or around the employer's home. Some exemptions are contingent upon the employee’s annual earnings from the employer being less than $1,500. Employers can choose to cover certain classes of exempt employees by purchasing an insurance policy to include them.
Workers' compensation insurance carriers and self-insured employers must have a representative in Iowa. This representative needs to understand Iowa's workers' compensation laws and have the authority to expedite claims. The employer should notify WCD of the representative's name, address, and phone number. Report any changes to this information within 10 days.
Employers (or their insurance carrier) must respond to benefits claims in a reasonable way. This means conducting a thorough investigation to ensure decisions are fact-based.
Weekly workers' comp benefits must start within 11 days after the injury causes the first day of disability.
Interest accrues on unpaid benefits.
If benefits aren't paid on time and there's no reasonable explanation given to the injured employee in writing, Iowa law may impose a penalty. A valid reason for denying benefits exists if the facts or the law make the claim's eligibility uncertain. Also, a reasonable excuse for delay exists while investigating the claim. When new information arises, the duty to investigate and review the claim's eligibility continues. The penalty could be as much as 50 percent of the unpaid benefits that were not paid on time.
If an employer or its insurance carrier denies a liability claim, the employee should receive a letter of denial. The letter should state the reasons for the denial.
Iowa law allows for an injured worker to file a lawsuit for:
Common law punitive damages
Bad faith claims practices
Abuse of process
Interference with contract and fraudulent misrepresentation
Failure to furnish medical care
Common law claims for breach of fiduciary responsibility
Slander for violating the workers' comp rule to provide reasonable medical care
