What to Do if Your Employer Is Exempt From Workers’ Compensation

By bwhlawoffices | Updated on August 12, 2025

Being injured on the job is traumatic, and finding out your employer doesn’t carry workers’ compensation can feel even more devastating. But you still have legal options, and there are pathways to seek the financial support you need during recovery. If you’re uncertain whether your employer is exempt or just avoiding the law, consult with a workers’ comp attorney as soon as possible. With proper guidance, you can get the care, compensation, and justice you deserve.

Getting injured while at work is bad enough, but getting hurt and not having access to workers’ compensation coverage can become a downright nightmare. Did you know it’s possible for some employers not to have to carry workers’ compensation insurance? If that’s the case for you, and your employer qualifies for workers’ compensation exemption, you’re probably wondering how you can receive the compensation you deserve.

Let’s consider what’s possible if you’ve been hurt at work and your employer does not carry workers’ compensation insurance.

What Does It Mean to Be Exempt From Workers’ Compensation?

Workers’ compensation laws are determined at the state level, and most states require employers to carry workers’ compensation insurance to cover medical expenses, lost wages, and rehabilitation costs for employees injured on the job. However, there are some exceptions.

An employer exemption means the business is not legally required to carry workers’ compensation insurance. This can occur for a variety of reasons, including:

The size of the business
The type of work being performed
The classification of workers employed

Being exempt does not automatically shield the employer from legal liability, but it does mean that the normal workers’ compensation process may not apply.

Types of Employers That May Be Exempt From Workers’ Comp Coverage

While laws vary from state to state, here are the most common types of businesses or individuals that may legally be exempt:

1. Sole Proprietors and Partnerships Without Employees

In many states, sole proprietors or companies that do not employ anyone else other than the owner are not required to carry workers’ compensation insurance. They may choose to buy coverage for themselves, but it’s not mandatory.

2. Small Businesses With Few Employees

Some states set a threshold on the number of employees a business must have before coverage is required. In Georgia, an employer with fewer than three employees—full-time, part-time, or seasonal—may be exempt.

3. Agricultural or Domestic Workers

Georgia allows some employers workers’ comp exemptions if they employ farm laborers or domestic employees, such as nannies, housekeepers, caregivers, etc.

4. Independent Contractors

While not technically a business exemption, many workers labeled as independent contractors are not covered by their client’s workers’ comp policies. However, misclassification is a common issue wherein the employer misclassifies an eligible employee as an independent contractor. These cases can lead to legal disputes should an incident occur.

However, being exempt does not always relieve an employer of responsibility for employee injuries. If you’re hurt on the job, you may still have legal avenues for compensation.

What to Do if You’re Injured and Your Employer Is Exempt From Workers’ Compensation

Man in a neck brace and arm sling filling out an injury report for his workers' compensation claim. If you’ve been hurt at work and your employer is exempt from workers’ compensation, still take the following steps:

1. Seek Immediate Medical Attention

Your health should always come first. Visit a doctor or hospital right away, and inform your care team that your injury is work-related. It’s crucial to keep all documentation of your diagnosis, treatment, and related costs as you pursue compensation.

2. Notify Your Employer of Injury in Writing

Even if your employer doesn’t have workers’ comp insurance, it’s still important to report the injury promptly. Submit a written report of the incident and injury with the date, time, and description of the accident.

Pro tip: Provide a copy of the report to your employer, and ask them to sign your copy as proof that they read and acknowledged the report.

3. Consult a Workers’ Compensation Attorney

A qualified attorney can review your situation and advise you on what to do if your employer is truly exempt from carrying coverage. If they were supposed to carry coverage but didn’t, you may have additional legal leverage. If they are truly exempt from carrying coverage, you may be able to file a personal injury claim if the injury occurred because of your employer’s negligence.

4. Consider Filing a Personal Injury Lawsuit

Unlike the workers’ comp system, which is a no-fault process, personal injury lawsuits require proving negligence. If your employer’s failure to maintain a safe workplace caused your injury, you may be able to sue for:

Medical bills
Lost income
Pain and suffering
Future rehabilitation needs
Loss of life in cases where death occurs

5. Explore Other Compensation Options

If the injury occurred due to faulty equipment, unsafe working conditions, or another third party’s involvement, you may be able to file a claim against:

A property owner (in a premises liability case)
A contractor or subcontractor
A product manufacturer

What if My Employer Is Not Exempt But Still Doesn’t Carry Workers’ Comp?

If your employer should have workers’ compensation coverage but doesn’t, they are still subject to the jurisdiction of the State Board of Workers’ Compensation. The employer is therefore immune to a personal injury lawsuit. However, the employee may still pursue a workers’ compensation claim, possibly leading to the employer being held personally responsible for the benefits recognized under the Workers’ Compensation Act.

No matter what, it’s vital to work with a workers’ compensation attorney who can assess your options and ensure your rights are protected.

Are You Dealing With a Workplace Injury and an Employer Exempt From Carrying Workers’ Compensation? Call Buzzell, Welsh & Hill Today: 478-217-2072

Our workers’ compensation attorneys fight for our clients’ rights to financial support, even if their employers are exempt from carrying workers’ compensation coverage. Regardless of the severity of your injury or the status of your employer, partner with our firm to get back on your feet without the financial strain.

Tell us about your case today: 478-217-2072

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