Workers' Comp Exemption by State

We've researched exemption rules for sole proprietors, LLC members, and corporate officers in the states below, with real statute and agency sources cited on every page. Don't see your state yet? Ask us directly.

United States map with research documents, representing state-by-state workers compensation exemption research

California

Sole proprietors with no employees generally aren't required to carry coverage on themselves, but California is unusual in requiring several specific contractor license classifications to carry workers' comp regardless of employee count.

View CA rules

Colorado

Sole proprietors and general partners are excluded from mandatory coverage by default unless they perform construction work on a construction site, while corporate officers and LLC members must file an affirmative rejection tied to an ownership and control test.

View CO rules

Florida

Florida's exemption rules split sharply by industry: non-construction sole proprietors and officers are excluded or capped loosely by default, while construction-industry owners face a reversed default and a hard 3-officer exemption cap.

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Georgia

Georgia treats sole proprietors and corporate officers as legal opposites: proprietors and partners are excluded by default, while up to 5 corporate officers or LLC members per company can waive coverage using the same statutory cap.

View GA rules

Illinois

Illinois runs entirely on private carrier notice with no state-issued exemption form, and flips its default from excluded to covered for "extra-hazardous" businesses like construction.

View IL rules

New York

New York excludes self-employed people with no employees by default, but its corporate officer exclusion is unusually rigid — available only to corporations with one or two officers who together own 100% of the stock.

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North Carolina

North Carolina excludes owners by default, but its most important quirk is that officers excluded at the policy level still count toward the state's 3-employee mandatory-coverage threshold.

View NC rules

Ohio

Ohio is a monopolistic state-fund state — all coverage routes through Ohio BWC directly — and its officer rule runs opposite most states: standard corporate officers are covered by default with no general opt-out.

View OH rules

Pennsylvania

Pennsylvania's default runs opposite many states: sole proprietors and LLC members are excluded by default and must opt in, while corporate officers are covered by default and must file to opt out.

View PA rules

Texas

Texas is a "non-subscriber" state — workers' comp coverage is elective, not mandatory, for most private employers, which reframes the whole exemption question around whether the business carries a policy at all.

View TX rules

We've currently researched 10 states in depth, with real sources cited on every page. We're continuing to add more states — if yours isn't listed yet, Workers Comp Exemption can still help; get in touch and we'll research it or point you to your state's agency directly.

Not Sure What Your State Requires?

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