Workers Compensation for Executive Officers, Sole Proprietors, and Partners

November 4, 2014

State-By-State Summary

This chart presents a state-by-state checklist showing if executive officers, partners, and sole proprietors are subject to the particular state's workers compensation (WC) laws. Some states allow these classes of workers to be exempt from the WC laws, while other states make them subject to the provisions of the WC laws. The chart is based on the most recent information available.

1Nonprofit corporation executive officers are not subject but may elect to be covered.

2Many exceptions apply; consult the statute for specific information.

3Up to eight officers who are stockholders of a corporation may choose to be exempt.

4Corporate officers who own less than 10 percent of all issued and outstanding stock, and who are also directors of the corporation (if the corporation has directors) are not subject, but may choose to be covered.

5Up to four officers may choose to be exempt.

6Corporate officers or partners who own more than 10 percent of the corporation's stock may choose to be exempt.

7Corporate officers who own at least 20 percent of the corporation's outstanding voting stock may choose to be exempt.

8Certain officers who own at least 20 percent of the corporation's outstanding capital stock may choose to be exempt.

9Officers who own at least 10 percent of the corporation's stock may choose to be exempt when the corporation has 10 or fewer stockholders and the corporation approves the exemption.

10Employees who own more than 15 percent of a corporation's stock may choose to be exempt.

11 Certain officers are exempt but may be covered if their employer elects coverage for them.

12 Executive officers who own 25 percent or more of the corporation's common stock are not subject but may elect to be covered.

13 Certain officers may choose to reject coverage.

14 Certain officers may choose to reject coverage.

15 Executive officers of nonprofit corporations are not subject.

16 An executive officer may reject coverage for injury or death by accident, but not for occupational disease.

17 Those officers who exercise substantial control in the daily management of the corporation and whose primary responsibilities do not include manual labor are not subject.

18 Up to two officers may be exempt for corporations having ten stockholders or less.

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