Oregon Workers’ Comp Exemption
We file workers’ compensation exemptions for Oregon 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 Oregon
Any employer with one or more 'subject workers' must maintain workers' compensation coverage — there is no numeric employee-count floor; a single subject worker triggers the requirement (ORS 656.017; ORS 656.027 defines who is NOT a subject worker).
Who can be excluded in Oregon
Sole proprietors
Nonsubject (exempt) by default provided the sole proprietor qualifies as an independent contractor when performing contract work; sole proprietors licensed as contractors under ORS 671.525 or 701.021 are conclusively presumed to be independent contractors. May elect coverage by written notice to the insurer (or to the director, if self-insured) — no fee or state form identified (ORS 656.027(7)).
Partners
Nonsubject by default if not engaged in construction work and qualifying as an independent contractor (ORS 656.027(8)). Partners of licensed landscape/construction businesses have a different, narrower rule: family-member partners may elect exemption, and otherwise the number of exempt partners is capped at whichever is greater — two partners, or one partner per 10 partnership employees (ORS 656.027(23)).
LLC members
Single-member LLCs are nonsubject regardless of the type of work performed (ORS 656.027(9)). Multi-member LLCs lose that default exemption for work performed in direct connection with construction of an improvement on real property — in that context LLC members ARE subject workers.
Corporate officers
A corporate officer who is also a board member and owns at least 10% of the corporation's stock is nonsubject by default. Officers performing construction work are capped at whichever is greater: two exempt corporate officers, or one exempt officer per 10 corporate employees (ORS 656.027(10) and, for licensed construction corporations, (24)). If all officers of a corporation are members of the same family (parent, spouse, sibling, child, child-in-law, or grandchild), all such officers may elect nonsubject status regardless of the general cap.
Construction rules in Oregon
Construction work is the pivot point in this statute: it strips multi-member LLCs and general partners/officers of the default exemption unless they fit the narrower licensed-contractor and headcount-capped provisions described above. Contractors licensed under ORS 671.525 (construction contractors) or 701.021 are conclusively presumed independent contractors.
How the exemption is filed
Oregon does not run a state exemption certificate/registry for owners. Exemption from coverage is the statutory default for qualifying sole proprietors, partners, LLC members, and corporate officers. To voluntarily bring an otherwise-exempt officer, member, or partner UNDER coverage, the business simply notifies its insurer in writing (or the Director of the Department of Consumer and Business Services, if self-insured) — no fee or state-issued form was found for this election.
- Form
- No state exemption form — see above
- Statute
- ORS 656.027 (Who are subject workers); ORS 656.017 (Employer required to comply with law); OAR 436-050-0050 (Corporate officers, LLC members, partners; subjectivity)
- Market
- Competitive — coverage is bought from a private carrier.
Notes and open questions
No state-filed exemption certificate exists for owners in Oregon — this is a default-exclusion/insurer-notice regime, not a registry regime. Did not independently confirm whether a fee applies to the insurer-notice election; none was found in the sources reviewed, so treat as unconfirmed rather than assumed zero.
Sources
- https://oregon.public.law/statutes/ors_656.027
- https://oregon.public.law/rules/oar_436-050-0050
- https://wcd.oregon.gov/Publications/2852.pdf
Source material dated Accessed 2026-08-30; oregon.public.law mirrors the current codified ORS/OAR text.. Compiled from official Oregon sources as a starting point, not legal advice — rules change, and your situation may turn on facts this page cannot see. Confirm with Oregon Workers' Compensation Division (WCD), Department of Consumer and Business Services or ask us and we’ll check it for you.
Workers' comp exemption filing in Oregon
Tell us about your Oregon business and we'll confirm whether you qualify for an exemption.