Workers’ Comp Exemption

A Workers' Compensation Exemption is a state-issued certificate that allows a qualifying sole proprietor, corporate officer, or partner to legally opt out of Workers' Comp coverage. Exemption rules vary by state: some states allow unlimited exemptions, others cap them (for example, Florida limits exemptions in the construction industry). When a subcontractor claims exempt status, a GC should never accept the claim verbally. Collect the actual state-issued exemption certificate and store it with the sub's compliance file.