Under Virginia workers' compensation law, what is the minimum number of employees that triggers mandatory coverage for construction contractors?
Correct Answer
B) 3 employees
Virginia law requires construction contractors to carry workers' compensation insurance when they have 3 or more employees, including part-time workers.
Why This Is the Correct Answer
Virginia Code § 65.2-101 defines an 'employer' subject to the Workers' Compensation Act as any entity that regularly employs three or more employees. For construction contractors specifically, this three-employee threshold applies and includes part-time and seasonal workers in the count.
Why the Other Options Are Wrong
Option A: 5 employees
Five employees is the threshold in many non-construction industries and other states, but Virginia's construction-specific rule is three. Choosing five would leave a small crew of three or four workers unprotected.
Option C: 10 employees
Ten employees is not a Virginia threshold for any standard workers' compensation category. This number may be associated with federal contractor thresholds under other laws.
Option D: 1 employee
One employee triggers mandatory coverage in a handful of states (e.g., for certain hazardous occupations), but not in Virginia for standard construction contractors.
Memory Technique
Virginia = Triangle State rule: 3 sides of a triangle = 3 employees. As soon as you have a three-person construction crew in Virginia, workers' comp is mandatory.
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A Virginia contractor has 8 employees with a total annual payroll of $400,000. If the workers' compensation rate is $3.50 per $100 of payroll, what is the annual premium?
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