Idaho legislature enforces penalties for employers failing to secure worker's compensation

On March 14, 2025, the Idaho House of Representatives introduced House Bill 64, a significant piece of legislation aimed at strengthening the enforcement of worker's compensation insurance requirements for employers in the state. The bill seeks to address the ongoing issue of employers failing to secure necessary worker's compensation coverage, which is crucial for protecting employees in the event of workplace injuries.

House Bill 64 outlines several key provisions that enhance the authority of the Idaho Industrial Commission in assessing penalties against non-compliant employers. Notably, the bill allows the commission to consider various factors when determining penalties, including the timing of notifications regarding insurance coverage, the employer's efforts to obtain coverage, and any previous instances of non-compliance. This nuanced approach aims to ensure that penalties are fair and take into account the specific circumstances of each case.

The bill also introduces a tiered penalty system for repeat offenders. Employers who fail to secure worker's compensation coverage after being penalized within the last three years will face escalating fines: $500 for a second offense and $1,000 for any subsequent violations. This provision is designed to deter non-compliance and encourage employers to maintain proper insurance coverage.

During discussions surrounding House Bill 64, there has been notable debate regarding the balance between enforcing compliance and the potential burden on small businesses. Proponents argue that the bill is essential for protecting workers and ensuring that employers take their responsibilities seriously. Critics, however, express concerns that increased penalties could disproportionately impact smaller employers who may struggle to afford insurance.

The bill is set to take effect on July 1, 2025, following its passage through the legislative process. If enacted, House Bill 64 could have significant implications for Idaho's workforce, potentially leading to improved safety standards and greater accountability among employers. As the bill progresses, stakeholders from various sectors will be closely monitoring its developments and potential impacts on the state's economy and labor market.