In Wyoming, calling someone a 1099 contractor does not by itself remove your duty to cover them; a worker is treated as your employee unless they pass the state's three-part independent-contractor test. Coverage is bought from the state fund at the Department of Workforce Services (DWS), and if a 1099 worker does not truly pass the test, their wages are yours to report when the work is extra-hazardous. On top of that, a general contractor can end up paying premiums on an uninsured subcontractor's crew, so this is one of the most closely watched areas in Wyoming.
Who this is for: Wyoming owners who pay people on a 1099 or use subcontractors and want to know when those people still have to be covered.
The short version
- Wyoming uses a three-part test, not the simpler ABC test some states use, and all three parts must be met.
- If the worker does not pass, they are your employee, and extra-hazardous work makes them a covered employee.
- A signed contract calling someone independent does not settle it; the state looks at how the work really runs.
- A general contractor is responsible for a subcontractor's premiums if the sub has not paid them.
- You verify a subcontractor's own state account is in good standing before work starts to avoid inheriting their premium.
The test Wyoming uses
Wyoming law spells out three things that must all be true for a worker to be a genuine independent contractor. First, the worker is free from your control or direction over the details of the work, both in the contract and in how the job actually runs. Second, the worker holds themselves out to the public as self-employed or an independent contractor. Third, the worker may send a substitute to do the work in their place. If any one of these is missing, the worker is treated as your employee. Notice what is not here: there is no test about whether the work is outside your usual line of business, which is the piece that makes the ABC test in some other states so strict. Wyoming leans on control and on whether the person truly runs their own business.
When a 1099 worker is really your employee
| Worker | Your employee? | What to check |
|---|---|---|
| A helper you direct day to day, paid on a 1099 | Yes, most likely | Control over the details of the work points to employment |
| A genuine business serving many clients | Often no | Free from your control, holds out to the public, and can send a substitute |
| A subcontractor with its own state account | No, but verify | Confirm the sub's DWS account is in good standing before work starts |
| A worker who cannot send anyone in their place | Likely yes | The right to substitute is one of the three parts that must be met |
The general contractor trap
If you hire subcontractors, there is a second layer of risk. Wyoming makes a general contractor responsible for a subcontractor's workers comp premiums when the sub has not paid them itself. A general contractor that does pay them keeps its own legal protection and can recover the amount it paid from the sub, but the safer path is to confirm coverage up front. On public jobs for the state, a county, a school district, a city, or a similar public body, the prime contractor must get certification that each subcontractor's account is in good standing before letting the sub start work. The fix is routine on any job: before you sign, confirm each sub's DWS account is active and in good standing, and keep the proof on file.
An Evanston example
Illustrative, not a quote. An Evanston general contractor brings on a framing sub he pays by 1099. Before work starts he confirms the sub's DWS account is active and in good standing and saves the proof. Because the sub runs a real business and carries its own state coverage, the general contractor is not billed for the sub's crew. A drywall helper the general contractor pays directly, though, works under his day-to-day direction and cannot send anyone in his place, so he fails the state test, and the contractor reports that helper's wages and covers him. See our workers comp for contractors page.
Real questions Wyoming owners ask
If my workers are 1099, do I still need workers comp in Wyoming?
Often yes. Wyoming treats a worker as your employee unless they pass a three-part independent-contractor test. If the test is not met and the work is extra-hazardous, you must report and cover that person through the state fund at DWS.
What test does Wyoming use for independent contractors?
A three-part test. The worker must be free from your control over the details of the work, hold themselves out to the public as self-employed, and be able to send a substitute. All three must be true, and Wyoming does not use the simpler ABC test.
Does a signed contract calling someone a contractor settle it?
No. Wyoming looks at how the work actually runs against the three-part test, not the label on the contract. A person can be your covered employee even with a 1099 and a contract that calls them independent.
Can I be billed for a subcontractor's workers comp?
Yes. A general contractor is responsible for a subcontractor's premiums if the sub has not paid them. If you pay them, you can recover the amount from the sub, but confirming coverage up front is the safer path.
How do I protect myself when hiring a sub?
Before work starts, confirm the sub's DWS account is active and in good standing, and keep the proof on file. On public jobs, the prime must get that certification before the sub begins work.
Does it really matter if my worker cannot send someone else to do the job?
Yes. One of Wyoming's three parts is that a true contractor may send another person to do the work. A worker who has to do the job personally and cannot substitute usually fails the test and is treated as your employee.
What does workers comp not cover for these workers?
The state fund pays medical care and lost wages for a covered worker's injury, but it does not defend you in a lawsuit. Stop-gap employers liability added to your general liability policy covers that defense.
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?
- 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)
- Do I need workers comp for 1099 contractors?
- What workers comp does not cover
- Wyoming contractor 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.