Virginia Workers Compensation

Virginia workers compensation insurance plays a key role in helping businesses handle work-related injuries and illnesses and supporting employees through recovery. To help stay compliant and have their employees’ claims managed with confidence, employers need to understand VA workers compensation laws, including coverage requirements, employee benefit details and reporting obligations. Virginia employers can find important information here.

Understanding workers compensation in Virginia

Virginia has a rich tradition of significant contributions to America. As the birthplace of many presidents, Virginia continues to be the residence of many policymakers on Capitol Hill. Virginia’s diverse landscapes, from the Atlantic Ocean to the Blue Ridge and Appalachian Mountains, make it a popular vacation destination requiring commercial infrastructure to maintain. The many employees who support others also need to be supported on-the-job through workers compensation insurance.

As the nation’s top workers compensation insurer, Travelers offers solutions at scale, which can be fitted to unique industry considerations.

Who is required to carry workers compensation insurance in Virginia?

If an employer has three or more employees, they are required to obtain workers compensation coverage.  
Operators of underground coal mines must have workers compensation regardless of the number of employees. 
Executive officers who are not paid salary or wages on a regular basis and reject workers compensation coverage are not counted towards the number of employees an employer must have to be required to carry workers compensation insurance in VA.

Virginia requirements to consider

Employers who fail to obtain insurance are subject to civil and criminal penalties and fines under state law.

Who can receive workers compensation benefits in Virginia?

Injured employees are generally eligible to receive workers compensation benefits. Some individuals are automatically included in or excluded from workers compensation in Virginia. 

Corporations: Officers are included in coverage and may elect to be excluded from coverage. A shareholder of a stock corporation having only one shareholder is excluded from coverage and may elect to be included in coverage.
Partnerships: Partners are excluded from coverage and may elect to be included in coverage only if all partners of the partnership elect to be included in coverage.   
Sole Proprietorships: Sole proprietors are excluded from coverage and may elect to be included in coverage.
Limited Liability Companies (LLCs): Members are excluded from coverage and may elect to be included in coverage. Managers are included in coverage and may elect to be excluded from coverage for injury or death, but not for occupational disease.

Overview of workers compensation requirements in Virginia

Understanding Virginia workers compensation is essential for employers. Being aware of state requirements helps employers comply with the law and support employees. This is an overview of the fundamentals of employer responsibilities and the benefits employees may receive under VA workers compensation law.

Virginia workers compensation employer responsibilities overview

Compensable injuries

Generally, injuries arising out of and in the course of employment, regardless of whose fault it is, have potential for workers compensation benefits. This includes occupational diseases and cumulative trauma injuries.

Occupational diseases and cumulative trauma injuries are conditions that develop over time in the workplace. 

The employee must show that the employment caused the condition and placed the employee at an increased risk of developing as compared to the general public.
The employee must show that they did not have substantial exposure to the disease or cumulative trauma outside of their employment. 
Claims must be supported by medical evidence directly linking the condition to work-related duties.

Posting notices

Employers are required to display the Virginia “Employer’s Workplace Notice” (Form 1) in both English and Spanish in a conspicuous location at the workplace. This notice informs the employer and employee of their rights and responsibilities under the Virginia Workers’ Compensation Act.

Providing medical treatment 

Employers must provide medical treatment for work-related injuries and promptly offer the injured employee a panel of at least three physicians to choose from.

These doctors cannot all be from the same medical practice.
If the employer fails to provide this panel, the employee has the right to select their own doctor.

Providing lost wages (indemnity) 

Employers can be responsible for lost wages, including decrease in pay due to modified job responsibilities. The employee benefits section gives a more in-depth explanation of the types of wage benefits employers may be responsible for.

Prompt reporting and forms

Employers should encourage employees to promptly notify them of any accident or injury. Once aware of a work-related injury, the employer should make sure the injured employee understands they can seek medical treatment if needed. The employer should notify their insurer right away of any work accident or injury so that their insurer can timely report to the Virginia Workers’ Compensation Commission (VWCC).

Employers or their insurer may need to report claim information throughout the claim process. Prompt reporting is essential to avoid penalties and provide timely benefits for injured employees.

Record keeping

Employers should maintain thorough documentation, including details about what happened, when, where, and witnesses involved. Accurate record keeping and prompt reporting to their workers compensation insurer can play a key role in a timely and complete investigation and handling of the claim.

The Employer should continue to maintain and provide necessary information to their insurer throughout the claim process as it is vital for efficient claim handling and compliance with the workers compensation law.

Penalties

It is important for employers to comply fully with the Workers’ Compensation Act, as failure to do so can lead to penalties such as fines and increased liability.

Virginia workers compensation employee benefits overview

Calculating Average Weekly Wage (AWW) in VA

An employee’s Average Weekly Wage (AWW) is a set calculation based on state requirements. It is used to help determine workers compensation wage benefits. Correct benefit amounts can be determined after an employee’s average weekly wage (AWW) is calculated.

In Virginia, Average Weekly Wage (AWW) is calculated from earnings 52 weeks prior to the injury.
Employers must provide accurate wage information to support the AWW calculation.

Temporary Total Disability (TTD) benefits

Temporary Total Disability (TTD) benefits are available when a doctor determines an injured employee is unable to work due to a work-related injury or illness.

Benefits begin after a 7-day waiting period.
A retroactive payment applies to the first day if the disability lasts more than 21 days.
The benefit amount is set at 66 2/3% of the injured employee’s average weekly wage (AWW), subject to state minimum and maximum limits.

Temporary Partial Disability (TPD) benefits

Temporary partial disability (TPD) benefits are available to injured employees who return to work with medical restrictions and earn less than their pre-injury wages.

These benefits equal 66 2/3% of the difference between their pre-injury AWW (Average Weekly Wage) and post-injury earnings, subject to state minimum and maximum rates.
Employers must provide accurate wage information to ensure proper benefit calculation.
Injured employees receiving these benefits are required to actively seek suitable work and report job search efforts or risk suspension of benefits.

Permanent Partial Disability (PPD) benefits

Permanent Partial Disability (PPD) benefits apply when an injury causes permanent impairment but does not prevent the injured employee from working, as confirmed after Maximum Medical Improvement (MMI).

Virginia uses a standardized impairment schedule assigning weeks of compensation for specific body parts.
Benefits are calculated by multiplying the injured employee’s pre-injury Average Weekly Wage (AWW) by 66 2/3%, subject to state-set rate limits, and applying the physician-determined impairment rating to the assigned weeks.
PPD benefits are calculated using the original compensation rate, without applying cost-of-living adjustments (COLA).
PPD benefits are capped at a maximum of 500 weeks. 
Employers must provide accurate wage information to ensure proper benefit calculation.
These benefits are separate from Temporary Total Disability (TTD) and Temporary Partial Disability (TPD) benefits.
An injured employee cannot receive TTD and PPD benefits at the same time but may receive PPD and TPD concurrently if eligible for the same accident.

Permanent Total Disability (PTD) benefits

Permanent Total Disability (PTD) benefits are provided when a work-related injury or illness results in a permanent, total inability to perform any gainful employment.

Payments are 66 2/3% of the injured employee’s pre-injury AWW (Average Weekly Wage).
PTD payments are subject to state minimum and maximum rates.
These are lifetime benefits and may include annual cost-of-living adjustments (COLA) when applicable.

Fatality benefits

If a work-related injury or illness causes an employee’s death, eligible dependents may receive benefits including:

Up to $10,000 for burial
$1,000 for transportation
Weekly compensation at 66 2/3% of the deceased employee’s AWW (Average Weekly Wage) for up to 500 weeks, subject to state limits

Benefits may end if a surviving spouse remarries or a dependent child turns 18 unless the child is disabled or is a child under the age of 23 and is enrolled as a full-time student in an accredited educational institution.

Vocational rehabilitation

If an employee is determined to be unable to return to the pre-injury job, they may qualify for vocational rehabilitation. The services available include vocational evaluation, counseling, retraining, job coaching, job development, job placement, on-the-job training, education and similar.

Medical benefits

Injured employees are entitled to all medically necessary care related to a work-related injury or illness, including doctor visits, hospital stays, rehabilitation services, medications, prosthetic devices, and other necessary treatments.

As soon as the injury is reported, the insured or carrier must provide a panel of three physicians from distinct practice groups for the injured employee to choose from. The physicians should have appropriate credentials to treat the type of injury involved. 
Employees may also be reimbursed for mileage and reasonable transportation expenses incurred when traveling to and from authorized medical appointments.
Employees are not responsible for any copayments or deductibles.

Legislative updates

Regulations, laws and potential changes that can shift your course

As the nation’s largest writer of workers compensation insurance, Travelers is committed to understanding new and evolving legislation, regulations and trends at the state level. Our employees serve on regional and national associations, boards and committees to advocate on behalf of our customers and the industry. We educate stakeholders on the impact legislation can have on businesses. By taking an active role in the legislative process, we participate in the important dialog around worker safety and advocate for best practices industry-wide so all can benefit from our workers compensation expertise.

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Why choose Travelers

Care for the employee, confidence for the employer

Employees are at the heart of every business. That's why Travelers is here to help employers keep them safe and support them when accidents happen. Our experienced teams guide both employers and their injured employees through recovery, from getting the right care to returning to work as soon as medically appropriate. In fact, 70% of injured employees return to work within 30 days.

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