Who is Eligible for Workers Compensation Exemption?
Posted February 11th, 2021 by Anthony Carbone.
Categories: Workers Compensation.
As a requirement by the law of New Jersey and other states in America, almost all employees must have workers’ compensation insurance. This is meant to ensure that employees are compensated in case of injuries and illnesses that occur in the line of duty. However, the law exempts certain types of business owners and employees. They have to file a workers compensation exemption form with the state’s workers’ compensation office. Consult a Bayonne Personal Injury attorney for assistance regarding workers’ compensation. The main question people ask is, am I eligible for workers’ compensation exemption?
Job categories that qualify for workers compensation exemption
Rules vary from state to state regarding which job categories they should exempt from workers’ compensation. However, some rules remain common in more than one state. They include:
- Part-time or full-time household domestic employee. Some states may strictly require the employment to be part-time.
- Family members living with the owner in the same home
- Employees under federal programs that cover disease, injury, or death.
- Agents and salespeople who work on the terms of commission.
- Casual employees with uncertain schedules and earn wages below a certain limit set by the state.
The law also allows companies to be excluded from the compensation of independent contractors. The contractors are also not legally required to insure themselves.
Employees who are eligible for workers compensation exception
The owners of the business and some high-level employees have the freedom to opt-out of the compensation. Other common categories include:
- Corporate officers: The president, treasurer, and other managers who have a set percentage of stock are exempted.
- Limited liability company members: employers with this privilege are required to have specific minimum ownership and management roles.
- Construction industry officers: This is only allowed in individual states, but others prohibit exemption because construction is hazardous.
- Family members: Sole proprietors and family members who do not live in the same home can also request an exemption.
Can you apply for an exemption if you are an owner without employees?
Sole proprietors are legally allowed to apply for an exemption based on ownership. However, you may still suffer some challenges as clients might want to see your workers’ compensation insurance before hiring you to work for them. This is because liability falls on them if you get injured on the job, and you don’t have a compensation policy. Employers prefer working with private contractors because they are liable for their workplace safety.
Applying for an exemption
The law requires that you file a workers compensation exemption form with the local workers’ compensation office. Here, you have to provide employee information, type of business, license, proof of ownership, and contact information. Once your application is reviewed and approved, you get your certificate.
New Jersey is a no-fault program meaning that you are entitled to compensation regardless of whose fault it is. However, the process may not be easy without a competent legal representation. Call Bayonne Personal Injury attorney Anthony Carbone to get your deserved compensation. Whatever the situation is, you can be assured of a good outcome.