Restaurant Workers' Comp in Kentucky
What Kentucky 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. Kentucky requires workers' compensation for any restaurant with one or more employees, including family, part-time, and temporary workers, under KRS Chapter 342. Sole proprietors, partners, and LLC members are excluded by default; corporate officers may opt out via Form 4. Uninsured employers face fines of $100 to $1,000 per employee for every day without coverage.
- Required?
- Yes
- Kicks in at
- One or more employees (1+). Per the Education and Labor Cabinet, employers with one or more employees must obtain and maintain coverage; family members, temporary workers, and part-time workers all count.
- Restaurant rate
- NCCI class 9082 (full-service) and 9083 (fast food). Approximately $0.90–$1.70 per $100 of payroll — Kentucky is a moderate-cost state above Indiana. For included corporate officers, effective Jan 1, 2026 assigned payroll runs $57,200 minimum to $234,000 maximum. Approximate, industry tier.
- Market
- Competitive private market; Kentucky created KEMI (Kentucky Employers' Mutual Insurance) as a state-chartered competitive carrier and insurer of last resort, with an NCCI-administered assigned-risk plan behind it.
Is workers’ comp required for a restaurant in Kentucky?
Kentucky requires workers' compensation once you reach One or more employees (1+). Per the Education and Labor Cabinet, employers with one or more employees must obtain and maintain coverage; family members, temporary workers, and part-time workers all count.. Sole proprietors, partners, and LLC members are excluded from their own coverage by default but may elect to opt in; corporate officers are automatically covered but may exclude themselves by filing Form 4 with the Department of Workers' Claims. Agricultural workers, and domestic servants in households with fewer than two domestic employees, are exempt.
What restaurant workers’ comp costs in Kentucky
The restaurant class-code rate in Kentucky is NCCI class 9082 (full-service) and 9083 (fast food). Approximately $0.90–$1.70 per $100 of payroll — Kentucky is a moderate-cost state above Indiana. For included corporate officers, effective Jan 1, 2026 assigned payroll runs $57,200 minimum to $234,000 maximum. 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; Kentucky created KEMI (Kentucky Employers' Mutual Insurance) as a state-chartered competitive carrier and insurer of last resort, with an NCCI-administered assigned-risk plan behind it.
What owners in Kentucky miss
- Kentucky's Education and Labor Cabinet fines uninsured employers $100 to $1,000 per employee for each day the employer is without coverage, and each day is a separate offense.
- Failing to insure strips the employer of the exclusive-remedy defense, exposing owners to civil lawsuits beyond the comp schedule, and can trigger reimbursement to the Uninsured Employers' Fund if benefits are paid.
- Corporate officers are automatically covered but may exclude themselves by filing Form 4 with the Department of Workers' Claims, while sole proprietors, partners, and LLC members are excluded by default unless they opt in.
- Kentucky chartered KEMI as a competitive state-created carrier / insurer of last resort, so a hard-to-place restaurant can still obtain coverage there rather than being forced to close.
Sources
- Kentucky Education and Labor Cabinet (elc.ky.gov): Workers' Compensation — Employer Frequently Asked Questionsprimaryretrieved 2026-07-27
- Kentucky Education and Labor Cabinet (elc.ky.gov): Workers' Compensation — Security and Complianceprimaryretrieved 2026-07-27
- Justia (Kentucky Revised Statutes): KRS Chapter 342 — Workers' Compensationprimaryretrieved 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.
Talk to an agent who insures food & beverage every day
A licensed commercial-lines agent who specializes in restaurants and bars will review your coverage, close the gaps that catch owners, and show you what a program actually costs — before anything is bound.