Which Agricultural Employers are Required to Purchase Workers’ Compensation in Maryland and Surrounding States?

A farmer is kneeling in a lush green field, holding a crate full of freshly harvested spinach. In the background, other farm workers continue to pick crops under a bright, sunny sky.

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Introduction

Workers’ Compensation is a type of insurance that most non-agricultural employers and some agricultural employers must purchase or provide that compensates employees when they are injured on the job. State law generally dictates which employers are required to obtain workers’ compensation, and businesses with operations in more than one state may be subject to the workers’ compensation laws of multiple states.  So, it is important for multi-state operations to discuss their individual circumstances with their insurance agent and/or attorney. This article outlines which employers are required to purchase workers’ compensation insurance, and if any agricultural exemptions apply in Maryland, Delaware, Pennsylvania, Virginia, or West Virginia.

Maryland

In Maryland, all employers are required to purchase workers’ compensation insurance if the employer has at least one covered employee.[1] Some “farmers,” however, are exempt from the requirements if their annual payroll is less than $15,000 or if they have less than three full-time employees.[2] There is not a clear definition of “farmer,” though, so agricultural employers will want to seek guidance from their counsel.

Delaware

In Delaware, all employers with at least one worker usually must carry workers’ compensation insurance unless an exemption applies.[3] “Farm laborers” are fully exempt, and Delaware courts have said that a farm laborer is someone “who works on a farm doing activities that are traditionally performed on a farm.”[4]  They also include employees who repair farm equipment essential to running the farm, and employees driving vehicles that carry the farm’s products.[5]

Pennsylvania

All employers in Pennsylvania must provide workers’ compensation insurance unless an exemption applies.[6] Agricultural employers are not required to provide coverage unless, during a calendar year, the employer either:

1.      pays $1,200 or more in wages for “agricultural labor” to one “employee,” or

2.      employs one “employee” in “agricultural labor” for 30 or more days.[7]

Spouses and children usually do not count as “employees” unless there is a written employment contract.  And, although Pennsylvania law does not clearly define “agricultural labor” in this section, courts have used common dictionary meanings of agriculture, such as farming, raising crops, and caring for livestock, to determine whether the agricultural exemption applies.[8] Courts have also included marketing farm products at a farm stand.[9] Courts have excluded landscape gardening and commercial greenhouses, meaning that these businesses would be required to provide workers’ compensation to their employees.[10]

Virginia

In Virginia, employers with three or more employees are required to provide workers’ compensation unless an exception applies.[11] Virginia has provided an exception for farm and horticultural employers. Under Virginia law, farm and horticultural employers do not have to purchase workers’ compensation unless they have more than three full-time employees regularly in service.[12] There is not a statutory definition or definition developed by the court system for farm or horticultural employers. Similarly, there is not a statutory definition of “regularly in service,” but Virginia courts have developed a test.[13]

West Virginia

In West Virginia, employers are required to purchase workers’ compensation insurance if the employer has one or more employees, unless an exemption applies.[14] The West Virginia Legislature did provide an exemption for some agricultural employers. Agricultural employers are exempt from the state workers’ compensation requirements if the employer has five or fewer full-time employees engaged in agricultural work.[15] Agricultural work has not been defined in West Virginia statutes or through case law.

Conclusion

None of the referenced states have defined which employers fall under the agricultural exceptions and exemptions within their statutes, and only two―Delaware and Pennsylvania―have had assistance from the courts in determining what types of agricultural work apply. Because of this, employers who think their state’s exceptions and exemptions might apply are encouraged to discuss their specific operations with their lawyers and insurance agents. Despite the varying requirements for agricultural employers, workers’ compensation is beneficial to protect both the employer and the employee, so employers can always choose to provide the coverage for their employees.

Maryland employers can learn more about their rights and responsibilities regarding workers’ compensation by reading our guide on the UMES Extension website.

[1] Md. Code Ann., Lab. & Empl. § 9-201 (West 2026).

[2] Md. Code Ann., Lab. & Empl. § 9-210(b)(2) (West 2026).

[3] Del. Code Ann. tit. 19 § 2306(a) (2026).

[4] Del. Code Ann. tit. 19 § 2307(b) (2026).; Irish Hunt Farms, Inc. v. Stafford, No. C.A. 99A-02-003 WCC, 2000 WL 972656, at *4 (Del. Super. Ct. Apr. 28, 2000).

[5] Lowe v. Vincent Farms, Inc., C.A. No. 11A-12-001 RFS, 2012 WL 1413580, at 3 (Del. Super. Ct. Feb. 23, 2012).; Bailey v. RNJ Farms, LLC, C.A. No. N24A-03-003 JRJ, 2024 WL 3675605, at 3 (Del. Super. Ct. Aug. 6, 2024).

[6] 77 Pa. Stat. and Cons. Stat. Ann. § 21 (West 2026).

[7] 77 Pa. Stat. and Cons. Stat. Ann. § 463 (West 2026).

[8] Hardy v. Gapen, 14 A.2d 892, 893 (Pa. Super. Ct. 1940).; Bucher v. American Fruit Growers’ Co., 163 A. 33, 35 (Pa. Super. Ct. 1932).

[9] Rosenberry v. Gillan Bros.197 A. 523, 525 (Pa. Super. Ct. 1938).

[10] Lallo v. Shinn, 40 Pa. D & C 75 (Pa. Philadelphia County Ct. 1941).; Hein v. Ludwig, 179 A. 917, 918 (Pa. Super. Ct. 1935).

[11] Va. Code Ann. § 65.2-101 (West 2026).

[12] Va. Code Ann. § 65.2-101 (West 2026).

[13] Cotman v. Green, 356 S.E.2d 447, 448 (Va. Ct. App. 1987).

[14] W. Va. Code § 23-2-1(a) (2026).

[15] W. Va. Code § 23-2-1(b)(2) (2026).