The Commonwealth of Virginia issued new information and guidance on workers’ compensation for contractors and subcontractors. Virginia law requires that an employer who regularly employs three or more part-time or full-time employees to carry workers’ compensation. According to the state’s Workers’ Compensation Commission, if a business hires subcontractors to perform the same trade, business or occupation, or to fulfill a contract of the business, the subcontractor’s employees are included in determining the total number of employees. Therefore, contractors (such as home builders) may be required to have workers’ compensation coverage for subcontractors.
You can view the full letter from the Virginia Workers’ Compensation Commission here: Workers’ Compensation Information for Contractors and Subcontractors.