If you are required to carry workers compensation in Wyoming and you do not, the consequences are criminal, financial, and legal all at once. Failing to open a state account or report payroll when the law requires it is a crime, a misdemeanor for a first offense and a felony for a repeat. On top of that, the state can charge you the back premiums you skipped, and because you were not a contributing employer, an injured worker can sue you directly instead of being limited to the state benefit system. Wyoming does not use a flat daily fine the way some states do; the teeth here are criminal charges, lost legal protection, and back money.
Who this is for: Wyoming owners weighing the risk of going without coverage, and anyone who has fallen behind on state premiums.
The short version
- Not opening an account or reporting payroll when required is a crime: a misdemeanor first, a felony for a repeat.
- A first conviction can bring a fine up to 750 dollars and up to six months in jail; a repeat can bring up to 10,000 dollars and up to ten years.
- False payroll reports to lower your premium carry their own criminal charges, tied to how much premium you dodged.
- You lose your legal protection, so a hurt worker can sue you directly for the full cost.
- The state can bill you the back premiums you should have paid, and a 30-day delinquency alone can strip your protection.
What Wyoming can actually do
The penalties fall into a few buckets. The criminal side punishes knowingly failing to establish an account or furnish a required payroll report, and knowingly filing a false payroll report to avoid premium. The civil side is the money: the state can debit your account for what you underpaid, and an employer who does not pay a debited amount within 30 days is treated as not contributing. The legal side is the one owners underrate: a contributing, current employer is protected from being sued over a workplace injury, but an employer who never qualified, or who has not paid premium due on a hurt worker within 30 days, loses that protection and can be taken to court directly.
| What you did | How Wyoming treats it | Range |
|---|---|---|
| Knowingly failed to open an account or report payroll (first time) | Misdemeanor | Up to 750 dollars and up to six months in jail |
| Same, a second or later time | Felony | Up to 10,000 dollars and up to ten years in prison |
| False payroll report to cut premium, smaller amount | Misdemeanor | Up to 750 dollars and up to six months, if under 500 dollars dodged |
| False payroll report to cut premium, larger amount | Felony | Up to 10,000 dollars and up to ten years, if 500 dollars or more dodged |
| Fell 30 days behind on premium for a hurt worker | Loss of legal protection | The worker can sue you directly, plus back premiums |
The lawsuit is often the biggest number
Owners tend to focus on the fine, but the uncapped risk is the lawsuit. When you are covered and current, the state benefit system is generally the worker's only route, which caps your exposure. Drop out of that system, by never signing up or by falling behind, and an injured worker can pursue you in court for the full cost of a serious injury, which can dwarf any fine. There is also no way to contract around the duty; Wyoming does not let a waiver or an indemnity clause relieve you of the obligation. If you direct the business's decision to skip coverage, the criminal exposure can reach you personally, not just the company.
A Sheridan example
Illustrative, not a quote. A Sheridan roofing company skips its DWS account to save money for a season. A crew member falls and is seriously hurt. Because the company never qualified, it faces a criminal charge for failing to establish an account, the state bills it for the back premiums it should have paid, and the worker, no longer limited to the state benefit system, sues the company directly for medical costs and lost wages. The owner learns the hard way that the lawsuit, not the fine, is the number that hurts. See our workers comp for roofers page.
Real questions Wyoming owners ask
What is the penalty for not having workers comp in Wyoming?
It is a crime. Knowingly failing to open a state account or report payroll is a misdemeanor for a first offense and a felony for a repeat, and the state can also bill you the back premiums you skipped.
Does Wyoming charge a daily fine for going without coverage?
No. Unlike some states, Wyoming does not use a flat per-day fine. The consequences are criminal charges, back premiums, and losing your legal protection so a hurt worker can sue you directly.
How much is the fine if I am caught?
A first conviction for failing to open an account or report payroll can bring up to 750 dollars and up to six months in jail. A second or later offense can bring up to 10,000 dollars and up to ten years.
Can an injured worker sue me if I had no coverage?
Yes. A contributing, current employer is protected from being sued over an injury. If you never signed up, or fell 30 days behind on premium for a hurt worker, you lose that protection and can be sued directly.
What happens if I under-report my payroll?
Filing a false payroll report to cut your premium is its own crime. It is a misdemeanor if you dodged under 500 dollars and a felony if you dodged 500 dollars or more, on top of paying what you owe.
Can I be charged personally, not just my company?
Yes. The criminal law reaches a person who knowingly fails to comply, so an owner or officer who directs the decision to go without coverage can face charges, not only the business.
Can a signed waiver get me out of the requirement?
No. Wyoming does not let a contract, waiver, or indemnity clause relieve you of the duty to carry required coverage. The obligation stays with the employer no matter what the paperwork says.
Why Wyoming owners choose Morrow
- We shop the right market for you. In Wyoming, mandatory workers compensation is sold only through the state, by the Department of Workforce Services (DWS), with no private carrier selling that mandatory coverage, so we help you open and run your state 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 Wyoming guides
Every Wyoming 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 Wyoming (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?
- We're a nonprofit: 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?
- 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)
- What workers comp does not cover
- Workers comp vs employers liability
- Wyoming roofer workers comp
This guide is general information, not legal advice. Wyoming rules and penalty amounts can change, so verify current requirements with Wyoming Department of Workforce Services (DWS), Workers' Compensation Division or a licensed advisor before you rely on them. Last updated: July 2026.