While many employers provide health insurance and other employee benefits for workers, the law generally does not require a business to do so. Most businesses provide these and other benefits to attract and retain good employees and as an additional form of compensation. However, employers generally must carry workers' compensation insurance to cover workplace injuries and illnesses. Additionally, businesses that employ unionized workers must provide whatever benefits are required by the terms of their union contracts, and it also may be necessary to provide certain types of employee benefits as a condition of doing business with or for certain governmental entities or agencies. A few states have decided to adopt laws requiring employers of a certain size to provide health insurance. Check with your state's insurance or labor department to see if your state has adopted such a law.

(Reviewed 9-08)