Workers' Comp for Janitorial in North Dakota (2026)

How workers' comp works for janitorial in North Dakota

North Dakota is one of only four monopolistic workers' compensation states in the U.S. All primary workers' compensation coverage must be purchased directly from North Dakota Workforce Safety & Insurance (WSI) — private insurers cannot offer competing primary WC policies in North Dakota. This means every janitorial operator working in the state must establish a WSI account; there is no alternative. WSI sets its own classification system and rate manual, updated annually effective July 1. The state's premiums are assessed only on wages up to a payroll cap per employee ($45,100 as of 7/1/2025), which limits exposure for high-wage workers. WSI also operates a robust managed-care program, contributing to competitive rates.

Class code and rate (2026)

• Code 9007 (WSI) — Building Custodians and Janitorial Service. This is WSI's equivalent of NCCI Code 9014 for commercial and residential cleaning operations. The rate is $1.91 per $100 payroll effective July 1, 2025 (down from $1.93 on 7/1/2024; -1.0% change; per WSI Manual Rates 2025/2026 published April 28, 2025).
• Payroll cap: premiums assessed only on first $45,100 of wages per employee per policy year (effective 7/1/2025).
• WSI Code 9007 covers: commercial and residential cleaning, window washing (including above-ground in the WSI manual), floor care, rug/furniture/furnace cleaning, pool cleaning, chimney sweeps, lawn/grounds maintenance, snow removal by hand or snow blower.
• Note: WSI does not use NCCI Code 9014 — operators must register with WSI directly and receive their WSI classification assignment; do not use NCCI rates for North Dakota.

Indemnity benefits (North Dakota 2025–2026)

• Max weekly TTD/PTD: $1,569 (effective 7/1/2025; = 125% of SAWW $1,255; per WSI Weekly Benefit Levels table; N.D.C.C. §65-05-09 — maximum = 125% of SAWW, in effect since August 1, 2009).
• Min weekly benefit: $753 (effective 7/1/2025; = 60% of SAWW $1,255; minimum applies unless actual net wages are lower, in which case employee receives actual net wages as benefit).
• Waiting period: 5 consecutive days; benefits begin on day 6; retroactive to injury date if disability extends beyond waiting period (N.D.C.C. §65-05-09).
• PPI (permanent partial impairment) rate: $440/week effective 7/1/2025 (= 35% of SAWW $1,255; per WSI benefit levels table; N.D.C.C. §65-05-12.2 — PPI rate = 35% of SAWW effective August 1, 2011).
• Annual COLA (Supplemental Benefit): applied annually to ongoing PTD and death benefits equal to the percent increase in SAWW (N.D.C.C. §65-05-09.3).

Coverage thresholds and exemptions

• Mandatory for all employers with 1 or more employees performing work in North Dakota; N.D.C.C. §65-04-01 — no employee-count threshold.
• Sole proprietors, partners, and LLC members may elect optional coverage via special contract with WSI.
• Domestic servants in private residences and certain casual/agricultural workers are exempt from mandatory coverage but may elect it.
• Independent contractor classification: WSI applies a stringent functional employee test; janitorial cleaning subcontractors are usually treated as covered employees of the general contractor unless they have their own WSI account.

Failure-to-insure penalty

Under N.D. Century Code §65-04-27.2, WSI has authority to issue a Cease & Desist Order against any employer operating without required coverage. Employers face a penalty of $10,000 plus $100 per day for each day the violation continues. The employer is also liable for the actual cost and reserves of any claim attributable to the period of non-coverage (§65-04-33(4)), and injured employees may sue the uninsured employer directly for damages. General contractors who knowingly allow uninsured subcontractors to work face a separate penalty of $5,000 plus $100 per day and are jointly liable for the subcontractor's premiums and any applicable penalty (§65-04-26.2).

Cost drivers specific to janitorial in North Dakota

• Top injuries (BLS NAICS 561720): slips/falls, back/shoulder strains, chemical exposure — North Dakota's oilfield economy (Bakken region) drives significant industrial facility cleaning demand alongside traditional commercial and government-building accounts.
• WSI's payroll cap ($45,100/employee) limits premium for higher-wage workers — a meaningful cost containment feature for janitorial firms with supervisory staff earning above this threshold.
• WSI's $1.91/$100 rate for Code 9007 is competitive nationally; the payroll cap further reduces effective costs for large operations.
• Bid-math note: at $1.91/$100 (capped payroll), load WC at approximately 1.9% of gross wages (below the payroll cap) in North Dakota bids. For employees earning above $45,100, the effective WC rate as a percentage of total wages is lower.

Primary sources

• North Dakota Workforce Safety & Insurance (WSI)
• WSI — North Dakota Weekly Benefit Levels (7/1/2025: max $1,569, min $753)
• WSI — Manual Rates 2025/2026 (Code 9007: $1.91/$100)
• WSI — Failure to Secure Coverage (penalties: $10,000 + $100/day)
• BLS NAICS 561720 Injury Data