Are Owners Exempt from Workers’ Compensation?
Are owners exempt from workers’ compensation? Workers’ compensation insurance is a state-mandated and regulated program. Basically, nearly every employer is required to carry a policy that covers workers who have sustained work-related injuries. The coverage provides benefits to pay for medical expenses and a percentage of lost wages.
Every state sets its workers’ compensation rules. In some cases, some employees and business owners can be exempt. This means that they can opt-out of or waive a workers’ compensation policy. Some states will have simple rules to this effect, while others will require candidates to file documentation.
If you have been injured in a work-related accident and are having trouble with your workers’ compensation claim, discuss your case with a Union City Personal Injury Attorney.
Workers’ Compensation Exemptions for Owners and Employees
States will often extend exemptions to some employees, depending on the nature of their work. This usually applies to workers who earn relatively little or only work of a nominal number of days for a year. In most states, real estate agents and agricultural workers are exempt from workers’ compensation because of these reasons.
When a company hires an independent contractor, they might not be liable for providing them with coverage. Such employees are exempt due to the temporary nature of their work. An independent contractor doesn’t receive their work instructions or tools from the business owner.
Most states also have exemptions related to business owners. Eligible candidates can opt-out of their business’s workers’ compensation coverage. They include:
- Sole proprietors
- Corporate officers that own more than a certain percentage in company stocks
- Members of limited liability companies
Owner Exclusion Rules Vary by State
In most states, owner inclusion or exclusion in workers’ compensation is automatic. The executive officers in a corporation are included in the coverage by default but can opt-out. Sole proprietors and partners are typically exempt but can opt-in for coverage.
As a business owner, you should study exemption rules in your state before purchasing a workers’ compensation policy. This will help you determine the options available and how you can apply for them. You might be required to file some documents to process your exemptions.
How to Qualify for Workers’ Comp Exemption
If you intend to opt-out of workers’ compensation coverage, you typically need to pay a processing fee and complete an Acord 130 form with the regulatory agency in your state. Your form should indicate your exemption preference. The process is usually repeated at every renewal.
Remember, you will still be required to purchase a cover for your non-exempt employees.
How Can a Union City Personal Injury Attorney Help?
Generally, workers’ compensation exclusion rules will vary across states, insurers, and business types. Your exemption status will also likely depend on the number of business owners in your company and their percentage ownership. An expert workers’ comp attorney can help you better understand the exemption regulations in your state.
At Anthony Carbone Law, we are dedicated to helping injured workers get their deserved benefits. Attorney Carbone uses his expertise to help clients whose injury claims have been denied.
If you are facing such a problem or have questions concerning workers’ compensation in the state, contact us to set up a consultation with the Union City Personal Injury Attorney.