From Gregory Boop,
Your Guide to Business Insurance.
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A. Workers' Compensation is required in all fifty states. However, each state is somewhat different in its requirements.

North Dakota, Ohio, Washington, West Virginia, and Wyoming:

These states are monopolistic markets. The state sets rates and operates a state administered fund of workers compensation insurance. In these states contact the state workers compensation administrative body. NOTE: West Virginia will cease being a monopolistic market on July 1, 2008.

California, Delaware, D.C., Indiana, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Carolina,Wisconsin:

These states allow private insurers to provide workers compensation subject to ratings and administration developed by that particular state.

Texas:

I put Texas into a separate class because it is the only state that allows some employers to go "bare" and have no insurance. The workers compensation system in Texas failed about ten years ago and the state has overhauled the system.

All other states not listed above:

The remaining states allow private insurance; however, the systems are managed and rated by the National Council on Compensation Insurance (NCCI). These states are referred to as "NCCI" states.