Workers' Compensation Rates in North Dakota (2026)
Last verified: 2026-07-29 · Reviewed against NCCI and state rating-bureau filings — how we verify
State Overview
WC Requirement
Mandatory
Minimum Employees
1
Effective Date
2026-07-01
WSI's classification manual runs on a July 1 policy year; the 2026 manual is effective July 1, 2026.
North Dakota operates a monopoly state fund through Workforce Safety & Insurance (WSI). All employers must purchase coverage from the state fund.
How North Dakota Actually Prices Workers' Comp
North Dakota does not use NCCI class codes. WSI publishes its own classification manual — 141 employment classifications unique to the state — and assigns each one its own rate.
Rate basis
Per $100 of payroll
Classification system
The fund's own classification manual
How WSI calculates your premium
WSI calculates premium by applying the rate for a class of employment to the taxable payroll reported in that classification. Premiums are assessed only on the first $46,600 of salary per employee, and the minimum premium is $250 per period even with no employees (2026 manual, effective July 1, 2026).
Why there is no class-code rate table on this page
The WSI manual states plainly that it "utilizes classification codes unique to North Dakota and classification codes or systems utilized in other jurisdictions do not apply." An NCCI four-digit code has no meaning in a North Dakota policy, so this site publishes no NCCI-keyed rate for the state — look your classification up in WSI's manual instead.
WSI 2026 Classification Manual (PDF) →
For the states that are rated on NCCI class codes, see our class-code directory and state rate comparison.
Sources
- WSI 2026 Classification Manual (effective July 1, 2026) (retrieved 2026-07-29)
- WSI — Premium Information (retrieved 2026-07-29)
Understanding North Dakota Workers' Comp Rates
North Dakota is one of only four monopolistic states (with Ohio, Washington, and Wyoming) where you cannot buy workers' compensation from a private insurer. Coverage comes exclusively from Workforce Safety & Insurance (WSI), the state-run fund created under North Dakota Century Code Title 65. Because no private carriers compete, there is no loss-cost multiplier (LCM) and no insurer-by-insurer pricing to shop — WSI classifies every employer, files a single rate for each class of employment, and pays the benefits itself. That single-fund structure is why comparing carriers, the normal move in an NCCI market, does not apply here. For how the state-fund model differs from the independent-bureau and NCCI markets most employers know, see our workers' comp rating bureau guide.
North Dakota's signature cost feature is the dividend. WSI declared a 50% dividend credit for the fiscal year ended June 30, 2024 — an estimated $83 million returned to policyholders — under NDCC 65-04-02 with the Governor's approval, and reported a comparable dividend of roughly $81 million for the fiscal year ended June 30, 2025. WSI states it has returned about $1.8 billion in dividends over 19 of the past 20 years. Because you cannot shop for a cheaper base rate in a monopolistic state, that recurring dividend — credited to renewing policyholders in good standing — is the closest North Dakota comes to price competition, and it is what makes the state's effective cost lower than the published rate schedule alone suggests.
How North Dakota Rates, Payroll Caps, and Dividends Work
WSI is not an NCCI jurisdiction: it maintains its own classification system (the WSI Classification Manual) and files its own rates rather than applying NCCI advisory loss costs. The manual is explicit that classification codes or systems used in other jurisdictions do not apply in North Dakota, so an NCCI four-digit code does not identify a WSI classification even where the numbers look familiar; the rate attached to each WSI class is WSI's own published figure, with no private-carrier multiplier layered on top. Your premium is calculated by applying the rate for your class of employment to your taxable payroll in that classification, with a statewide minimum premium of $250 per policy period. The maximum taxable payroll counted per worker is capped at 70% of the state's average annual wage, and that cap resets every July 1 — for the year beginning July 1, 2026 it is $46,600 per employee, so a business with high earners pays premium only up to the cap, not on full wages. WSI's manual states that it “utilizes classification codes unique to North Dakota and classification codes or systems utilized in other jurisdictions do not apply”, so we publish no NCCI-keyed rate table for the state — the authoritative figures are the rates in WSI's own classification manual.
Because you cannot lower your rate by switching carriers, the levers that actually move a North Dakota premium are correct classification, your experience/loss history, participation in WSI safety and risk-management programs, and the annual dividend. A misclassification — being placed in a higher-rated class than your operations warrant — costs more here than almost anywhere, because no competing insurer can undercut the state fund to compensate. This mirrors the situation in Ohio, the other Midwestern monopolistic fund, where group and program discounts rather than carrier shopping drive the real price. Low-hazard work such as 8810 Clerical Office Employees sits near the bottom of the WSI schedule, while construction codes like 5213 Concrete Construction NOC and retail operations such as 8017 Retail Store NOC carry higher rates.
Coverage, Owners, and Compliance in North Dakota
North Dakota has no minimum-employee threshold: with limited exceptions the law requires coverage for all employees — full-time, part-time, seasonal, and occasional — before they begin working, so the obligation attaches the moment you hire your first worker. Private insurance does not satisfy North Dakota; an other-states policy from a private carrier does not cover North Dakota payroll, and you must have an active WSI account in force before work begins. Out-of-state employers are pulled in when an employee earns 25% or more of their gross annual wages for work performed in North Dakota, or when 25% or more of the employer's gross annual payroll is for North Dakota services.
Business owners are treated differently from employees. Sole proprietors, partners, and certain corporate officers and LLC members are generally not automatically covered on themselves but may apply to WSI for optional personal coverage. Compliance is enforced aggressively: operating without required coverage can trigger a Cease & Desist Order, penalties up to $10,000, and an additional $100 per day for each day the violation continues. Employers adding North Dakota payroll for the first time should open a WSI account before any work starts, because the exclusive-remedy protection that shields an employer from injury lawsuits depends on active WSI coverage.
Sources
- WSI 2026 Classification Manual, effective July 1, 2026 (141 North Dakota-specific employment classifications; “classification codes or systems utilized in other jurisdictions do not apply”; $46,600 payroll cap; $250 minimum premium) (retrieved 2026-07-29)
- North Dakota WSI — Premium Information (rate applied to taxable payroll; $250 minimum premium; payroll capped at 70% of state average annual wage, effective July 1) (retrieved 2026-07-27)
- North Dakota WSI — Coverage Requirements (no minimum-employee threshold; private insurers not allowed; out-of-state 25% rule; penalties up to $10,000 plus $100/day) (retrieved 2026-07-27)
- Workforce Safety & Insurance — Financial Statements, June 30, 2024 and 2023 (50% dividend credit for FY2024, estimated $83 million, under NDCC 65-04-02 with Governor approval) (retrieved 2026-07-27)
- North Dakota WSI — 2025 Classification Manual (WSI's own classification system and rate basis, not NCCI advisory loss costs) (retrieved 2026-07-27)
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Frequently Asked Questions
Related Guides for North Dakota Employers
- The Complete Guide to Workers' Comp Costs in 2026
National benchmarks, the 2026 state rate-change table, and how to budget your premium.
- Compare Workers' Comp Rates by State
Rank the states that are rated on NCCI class codes per $100 of payroll. North Dakota is not among them — see the pricing model above.
- Workers' Comp Premium Calculator
Walks through the standard rating-bureau premium algorithm step by step. It works from an NCCI class-code rate per $100 of payroll, so it does not model WSI premium — use it to understand the mechanics, not to price a North Dakota policy.
- Workers' Comp Class Codes Explained
How NCCI assigns a code to each job and why it creates a 10–25× swing in your rate.
- NCCI Class Code Lookup & Directory
Search workers' comp class codes by keyword to find the four-digit NCCI (or North Dakota bureau) code for your business — then see how it is rated above.
- Experience Modification Rate (EMR) Explained
How your claims history becomes a multiplier that raises or lowers your North Dakota premium.
- 5 Proven Ways to Lower Your Workers' Comp Premium
Tactics any small business can use to reduce cost at next renewal — from classification audits to return-to-work programs.
- How Rates Are Calculated: NCCI vs Independent States
Whether North Dakota uses NCCI or an independent bureau — and why the difference changes how your premium is set.
Coverage in North Dakota Comes From the State Fund
Private carriers cannot write workers' compensation in North Dakota, so there is no market to shop. Buy coverage and get your own rate from WSI directly.
Go to WSI