If your North Dakota nonprofit has any paid staff, yes, it must carry workers compensation on them through the state fund, Workforce Safety and Insurance (WSI), from the first day they work. Being a nonprofit does not create an exemption; the state looks at whether people are working for pay, not at your tax status. Your volunteers are outside the mandate, and paid staff, including a paid executive director, are covered like any other employees.
Who this is for: North Dakota nonprofits with employees, paid executives, or a mix of paid staff and volunteers.
The short version
- Paid staff must be covered through WSI from the first day; nonprofit status is not an exemption.
- Volunteers, who receive no pay, are outside the mandate.
- A paid executive director or paid officer is generally a covered employee, not an exempt owner.
- You buy only from the state fund; there is no private carrier to shop in North Dakota.
- The nonprofit pays the full premium and cannot deduct any of it from an employee's wages.
Staff, officers, and volunteers
The dividing line is pay. Anyone your nonprofit pays to work is generally a covered employee from the first day, whether they are full-time, part-time, or seasonal, and their wages must be reported to WSI. Volunteers, who receive no pay, are outside the mandate, though a nonprofit can choose to carry separate accident coverage for them. The officer question is where nonprofits differ from businesses: the owner exemptions that let a for-profit corporation leave an officer off the policy are built around owners of the business, and a paid executive director or paid officer of a nonprofit is usually just a paid employee. When in doubt, treat anyone you pay as a covered worker.
Who counts at your nonprofit
| Person | Covered? | Notes |
|---|---|---|
| Paid employees | Yes, from the first day | No headcount minimum; part-time and seasonal count |
| Paid executive or officer | Usually yes | A paid role is generally a covered employee, not an exempt owner |
| Volunteers | Not required | Outside the mandate; consider separate accident coverage |
| Clergy and place-of-worship staff | Often exempt | Members of the clergy and staff maintaining a place of worship sit outside the mandate |
Getting the setup right
Two practical steps keep a nonprofit out of trouble. First, if you pay anyone, open a WSI account and report their wages; do not assume a small stipend or a part-time role escapes the rule. Second, decide how you handle volunteers, since a serious injury to an unpaid volunteer would not be paid by an employee policy, and some nonprofits carry separate accident insurance for volunteers. Finally, because the state fund pays benefits but does not defend a lawsuit, adding stop-gap employers liability to your general liability policy protects the organization if a paid worker sues over an injury.
A Jamestown example
Illustrative, not a quote. A Jamestown nonprofit runs a food program with a paid director, two part-time coordinators, and a roster of weekend volunteers. The director and the two coordinators are paid, so all three are covered through WSI from the first day, and the nonprofit pays the whole premium. The volunteers are outside the mandate, but the board carries separate accident coverage for them and adds stop-gap employers liability to the general liability policy. See our workers comp for nonprofits page.
Real questions North Dakota owners ask
Does our North Dakota nonprofit need workers comp?
If you pay anyone to work, yes, through the state fund, WSI, from the first day. Nonprofit status is not an exemption. Only your unpaid volunteers sit outside the mandate.
Are our volunteers covered?
Not automatically, because volunteers are outside the mandate. An employee policy would not pay a volunteer's injury, so some nonprofits carry separate accident insurance for their volunteers.
Is our paid executive director exempt as an officer?
Usually not. The owner exemptions are built around business owners, and a paid executive or officer of a nonprofit is generally a covered employee like any other paid worker.
Where do we buy coverage?
Only from the state fund, Workforce Safety and Insurance, known as WSI. North Dakota does not allow private workers comp carriers, so you open a WSI account and report your paid staff's wages.
Do part-time staff and small stipends count?
Yes. North Dakota has no part-time exception, and paying someone to work generally makes them a covered employee. Do not assume a small stipend or a few hours a week escapes the rule; confirm it.
Can we deduct the premium from a staff member's pay?
No. The nonprofit pays the whole premium, and deducting any part of it from an employee's wages is illegal in North Dakota. Staff pay nothing toward their own coverage.
Does the state policy defend our nonprofit in a lawsuit?
No. WSI pays a hurt worker's benefits but does not provide a legal defense. Nonprofits with paid staff usually add stop-gap employers liability to their general liability policy for that.
Why North Dakota owners choose Morrow
- We shop the right market for you. In North Dakota, workers compensation is sold only through the state fund at Workforce Safety and Insurance (WSI), with no private carriers to shop, so we help you open and run your WSI account correctly and place the stop-gap employers liability and other business coverages the state fund does not include.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related North Dakota guides
Every North Dakota business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in North Dakota (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Hiring your first employee: what changes
- What workers comp does not cover
- North Dakota nonprofit workers comp
This guide is general information, not legal advice. North Dakota rules and penalty amounts can change, so verify current requirements with North Dakota Workforce Safety and Insurance (WSI) or a licensed advisor before you rely on them. Last updated: July 2026.