Virginia Workers’ Comp Exemption
We file workers’ compensation exemptions for Virginia 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 Virginia
Mandatory once an employer 'regularly employs more than two part-time or full-time employees' (i.e., 3 or more). Subcontractors' employees count toward a general contractor's total under the 'statutory employer' doctrine (Va. Code 65.2-302) when the subcontractor is performing the same trade/business/occupation as the contractor or fulfilling a contract obligation of the contractor -- so a GC can be required to carry coverage based on combined headcount even if the GC itself has 2 or fewer direct employees. Executive officers count as employees for purposes of the headcount. Underground coal mine operators cannot use the small-employer exemption regardless of count. Domestic/household workers employed for care/comfort/convenience of household members are excluded with no numerical limit.
Who can be excluded in Virginia
Sole proprietors
A sole proprietor with no employees and no subcontractors is not required to carry coverage. Virginia does NOT issue or accept any waiver/exemption/opt-out filing for a business that is not required to carry coverage in the first place -- there is simply no filing needed. Voluntary coverage can be purchased if desired.
Partners
Not separately addressed in the sources reviewed beyond the general employee-count and statutory-employer rules; partners performing work are generally treated like any other person providing services for pay when assessing whether the business exceeds the 2-employee threshold. Not verified beyond this -- confirm specifics with the Commission if partnership-specific treatment matters.
LLC members
Single-member LLCs: the member is treated as an employee. For multi-member LLCs the statute is silent; treatment depends on whether the member performs work and is compensated as an employee, separate from ownership/membership duties.
Corporate officers
Corporate officers and LLC managers are, by default, defined as employees and are NOT exempt from coverage (i.e., they count toward the employer's headcount and must be covered like any other employee). The only exception: non-compensated officers of a 501(c)(3) tax-exempt corporation or of a property owners' association may be exempt. Officers and LLC managers are the only categories of employee who may affirmatively REJECT coverage -- they do so by filing a Rejection of Coverage form (Form 16A) with the Virginia Workers' Compensation Commission and with the insurer, but only after the business already has a valid workers' comp policy in place (you cannot reject coverage that never existed). No cap on the number of officers who may file a rejection was found in the sources reviewed.
Construction rules in Virginia
General contractors are 'statutory employers' under Va. Code 65.2-302 and are liable for workers' comp coverage of subcontractors' employees performing the contractor's trade/business or fulfilling its contract obligations. Subcontractor employees are added to the contractor's own employee count when determining whether the more-than-two-employee threshold is met, regardless of whether the subcontractor separately carries its own coverage. Contractors should keep proof of subcontractors' coverage.
How the exemption is filed
There is no general state-run 'exemption certificate' registry for businesses below the threshold -- exclusion below 3 employees is automatic and requires no filing. The only state filing in this space is the opposite direction: an already-covered officer or LLC manager affirmatively REJECTS coverage via Form 16A (Rejection of Coverage), filed with the Virginia Workers' Compensation Commission and the insurer. No fee or duration information was found in the sources reviewed for Form 16A; not verified.
- Form
- Rejection of Coverage (Form 16A) -- for officers/LLC managers to reject coverage; no exemption-certificate form exists for the below-threshold exclusion
- Statute
- Va. Code 65.2-101 (definitions / employee threshold), 65.2-302 (statutory employer / subcontractor liability), 65.2-508, 65.2-805
- Market
- Competitive — coverage is bought from a private carrier.
Notes and open questions
Virginia is a 'default exclusion below threshold, policy-endorsement election above it' regime for most owners, but is unusual in that corporate officers/LLC managers are affirmatively INCLUDED as employees by default and must actively reject coverage (opposite of the more common opt-in pattern seen in many other states). Form 16A fee/duration not verified -- could not locate the form itself or its instructions in the sources fetched; treat that detail as unconfirmed.
Sources
- https://workcomp.virginia.gov/employer-faqs
- https://law.lis.virginia.gov/vacode/title65.2/chapter1/section65.2-101/
Source material dated undated (current VWC employer FAQ page and current Code of Virginia as accessed 2026-08-30). Compiled from official Virginia sources as a starting point, not legal advice — rules change, and your situation may turn on facts this page cannot see. Confirm with Virginia Workers' Compensation Commission (VWC) or ask us and we’ll check it for you.
Workers' comp exemption filing in Virginia
Tell us about your Virginia business and we'll confirm whether you qualify for an exemption.