Restaurant Workers' Comp in Kansas
What Kansas requires of restaurants and bars for workers' compensation — when it kicks in, who's exempt, and what it costs.
Reviewed by J. Robert Smith, Licensed Insurance Agent (NPN 10378680). Last updated .
Yes, in almost all cases. Kansas requires workers' compensation for restaurants unless the employer reasonably estimates total gross annual payroll of $20,000 or less for the current year. Because most restaurants easily exceed $20,000 in wages, coverage is effectively mandatory. Wages paid to the owner's family are excluded when testing the threshold, except for corporate employers.
- Required?
- Yes
- Kicks in at
- Required unless total gross annual payroll for the preceding year was $20,000 or less AND estimated payroll for the current year is $20,000 or less (K.S.A. 44-505). Payroll paid anywhere counts.
- Restaurant rate
- NCCI 9082 (Restaurant NOC) / 9083 (fast food) approx. $0.80–$1.40 per $100 payroll; low-hazard hospitality tier. Approximate, industry tier.
- Market
- Competitive private market with no state fund; an assigned-risk plan provides coverage for hard-to-place employers.
Is workers’ comp required for a restaurant in Kansas?
Kansas requires workers' compensation once you reach Required unless total gross annual payroll for the preceding year was $20,000 or less AND estimated payroll for the current year is $20,000 or less (K.S.A. 44-505). Payroll paid anywhere counts.. Sole proprietors, partners, and LLC members are excluded from the count/coverage but may elect in; corporate officers owning 10%+ may elect out. When testing the $20,000 threshold, wages paid to family members by marriage or consanguinity are excluded — but that family exclusion does not apply to corporate employers. Agricultural pursuits are separately exempt.
What restaurant workers’ comp costs in Kansas
The restaurant class-code rate in Kansas is NCCI 9082 (Restaurant NOC) / 9083 (fast food) approx. $0.80–$1.40 per $100 payroll; low-hazard hospitality tier. Approximate, industry tier.. Your premium is that rate applied per $100 of payroll and adjusted by your experience modifier, so it scales with how many people you employ and your claims history. Competitive private market with no state fund; an assigned-risk plan provides coverage for hard-to-place employers.
What owners in Kansas miss
- Kansas is the key nuance: under K.S.A. 44-505 an employer is exempt only if estimated total gross annual payroll is $20,000 or less — a figure virtually every restaurant exceeds.
- The test counts payroll paid anywhere, not just in Kansas.
- When applying the threshold, wages to the owner's family (by marriage or blood) are excluded, but that carve-out does not extend to corporate employers.
- The civil penalty for failing to insure is twice the annual premium or $25,000, whichever is greater.
Sources
- Kansas Office of Revisor of Statutes: K.S.A. 44-505 — Application of workers compensation actprimaryretrieved 2026-07-27
- Kansas Department of Labor: Workers Compensation Division — Overviewprimaryretrieved 2026-07-27
- Insureon: Kansas Workers' Compensation Insurance for Small Businessindustryretrieved 2026-07-27
Cost examples are illustrative national figures gathered from public filings and industry surveys. They are not quotes. Your actual premium depends on your state, carrier, revenue, payroll, location, and coverage selections. Restaurant Insurance Authority is an insurance marketing and referral service, not an insurer or licensed agency. We connect business owners with licensed independent commercial-lines agents who specialize in food and beverage. Questions? Call (855) 480-1410.
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