Ohio Workers’ Comp Exemption
We file workers’ compensation exemptions for Ohio sole proprietors, LLC members, and corporate officers. Send us your details and we’ll confirm whether you qualify and handle the filing.
When coverage is required in Ohio
Ohio is a MONOPOLISTIC state: the Bureau of Workers' Compensation (BWC) is the exclusive state fund -- private carriers are not permitted. Any employer with one or more employees must maintain coverage through BWC.
Who can be excluded in Ohio
Sole proprietors
A sole proprietor is not, by default, an 'employee' under Ohio Revised Code Section 4123.01 and is not automatically covered. The owner is an 'elective coverage person' who may elect to be covered by filing Form U-3S with BWC; coverage is effective on the date BWC receives the application and continues until cancellation is requested.
Partners
A member of a partnership is likewise an 'elective coverage person' under ORC 4123.01, not automatically an employee, and may elect coverage via Form U-3S using the same mechanism as a sole proprietor.
LLC members
The text of ORC 4123.01 I was able to retrieve names sole proprietorships, partnerships, individuals incorporated as a corporation with no employees, and family farm corporations as the 'elective coverage entity' categories -- it does not use 'LLC member' as its own distinct statutory label. How a specific LLC is treated depends on whether it is structured/taxed as a sole proprietorship or partnership for this purpose. I could not independently confirm LLC-specific mechanics from an official source in this pass -- flag for direct BWC confirmation before publishing LLC-specific guidance.
Corporate officers
Default is INCLUDED (mandatory) if the corporation has one or more other employees -- ordinary corporate officers of an operating corporation appear to be automatically covered with no opt-out described in the ORC 4123.01 text retrieved. Two narrow exceptions are elective (optional), per Form U-3S: (1) an individual incorporated as a corporation with NO employees, and (2) officers of a family farm corporation -- both may elect coverage but are not automatically covered.
How the exemption is filed
There is no 'exemption certificate' in Ohio -- since it is monopolistic, the only two states for a qualifying owner/officer are (a) not covered by default (sole proprietor, partner, a no-employee incorporated individual, or family farm officer), or (b) covered because they filed to elect coverage. To elect coverage, the employer files Form U-3S (Application for or Request to Cancel Elective Coverage) with BWC. Ordinary corporate officers of a corporation that has other employees are mandatorily covered with no exemption route found in the sources reviewed.
- Statute
- Ohio Revised Code Section 4123.01 (definitions; elective coverage persons/entities)
- Market
- Monopolistic — coverage is bought only from the Ohio state fund, not a private carrier.
Notes and open questions
Ohio is a monopolistic state -- BWC is the sole coverage source, no private endorsement route exists. 'Exemption' in Ohio functionally means falling outside the ORC 4123.01 definition of 'employee' (sole proprietors, partners, no-employee incorporated individuals, family-farm officers); those who want coverage file U-3S to opt IN, the reverse of an exemption filing. Ordinary corporate officers of a corporation with other employees did not show any opt-out in the statute text retrieved and should be treated as mandatorily covered unless BWC says otherwise. LLC-specific treatment was not independently confirmed and needs direct follow-up with BWC.
Sources
- https://codes.ohio.gov/ohio-revised-code/section-4123.01
- https://dam.assets.ohio.gov/image/upload/info.bwc.ohio.gov/forms/U-3S.pdf
Source material dated ORC page reflects the 2025 Ohio Revised Code as published on codes.ohio.gov; U-3S PDF path accessed 2026-08-30 (form's own revision date could not be extracted from the binary). Compiled from official Ohio sources as a starting point, not legal advice — rules change, and your situation may turn on facts this page cannot see. Confirm with Ohio Bureau of Workers' Compensation (BWC) or ask us and we’ll check it for you.
Workers' comp exemption filing in Ohio
Tell us about your Ohio business and we'll confirm whether you qualify for an exemption.