A Kansas workers comp exemption lets certain business owners legally go without workers’ compensation coverage on themselves — Sole proprietors, partners and LLC members are left out of coverage automatically. Each one may choose to be covered by having their policy clearly include them (K.S.A. 44-542a). A corporate employee who owns 10 percent or more of the company’s outstanding stock may choose to opt out of coverage (K.S.A. 44-543).
Officers who own less than 10 percent must be covered. The statute does not limit how many officers may opt out. — while the law still requires coverage for employees once a business has 1 (Kansas uses a payroll test, not a headcount test. An employer must have coverage once its gross annual payroll is more than 20000. Payroll paid both in Kansas and in other states counts, under K.S.A.
44-505) or more. This guide explains who qualifies for the Kansas workers comp exemption, the exact form, where to file it, what it costs, and what an exempt owner gives up. Verified against Kansas sources as of October 2026.
Kansas at a Glance
| Coverage required at | 1 (Kansas uses a payroll test, not a headcount test. An employer must have coverage once its gross annual payroll is more than 20000. Payroll paid both in Kansas and in other states counts, under K.S.A. 44-505) employee(s) |
| Who may elect out | Sole proprietors, partners and LLC members are left out of coverage automatically. Each one may choose to be covered by having their policy clearly include them (K.S.A. 44-542a). A corporate employee who owns 10 percent or more of the company’s outstanding stock may choose to opt out of coverage (K.S.A. 44-543). Officers who own less than 10 percent must be covered. The statute does not limit how many officers may opt out. |
| Exemption form | K-WC 50, “Election Not to Accept Coverage Under Kansas Workers Compensation Act by Employee Who Owns 10% or More of Corporate Stock of Corporate Employer.” It is cancelled with Form K-WC 50-A. Owners who want to opt in use Form K-WC 113. |
| Filed with | Kansas Department of Labor, Division of Workers Compensation. The form can be emailed to [email protected], faxed to 785-296-0025, mailed to the address printed on the form, or filed through the Division’s OSCAR system. A copy must also be given to the employer. The election takes effect when the Division receives it. https://www.dol.ks.gov/workers-compensation/overview |
| Renewal | The election does not need to be renewed. It stays in effect for as long as the person works for that corporation, or until they cancel it with Form K-WC 50-A (K.S.A. 44-543). |
| Penalty for being uninsured | K.S.A. 44-532. If an employer knowingly and intentionally fails to carry workers’ comp, the director can charge a civil penalty of twice the annual premium the employer would have paid, or 25000, whichever is greater. The same failure is also a class A misdemeanor. The director may not fine a self-employed subcontractor for not covering themselves personally, but the penalty still applies for that subcontractor’s employees. |
In This Kansas Guide:
Who Qualifies for A Kansas Workers Comp Exemption
Sole proprietors, partners and LLC members are left out of coverage automatically. Each one may choose to be covered by having their policy clearly include them (K.S.A. 44-542a). A corporate employee who owns 10 percent or more of the company’s outstanding stock may choose to opt out of coverage (K.S.A. 44-543). Officers who own less than 10 percent must be covered.
The statute does not limit how many officers may opt out.
K.S.A. 44-543. Any employee of a corporation who owns 10 percent or more of its outstanding stock may file a written statement with the director, before any injury, choosing not to accept the Workers Compensation Act. A copy must be filed with the employer at the same time. The choice is valid only while the person works for that employer.
It can be reversed by filing a new written statement with the director and the employer. Any contract that makes opting out a condition of employment is void. Even when officers opt out, their wages still count toward the corporation’s 20000 payroll threshold.
K.S.A. 44-542a. Individual employers, partners, LLC members and self-employed people are outside the Act by default. They may choose to be covered by buying insurance that clearly shows the intent to cover them under K.S.A. 44-532(b)(1). The state election form for this is K-WC 113, “Election of Individual, Partner, Member of an LLC or Self-Employed Individual.”
How to File the Kansas Workers Comp Exemption
The form is K-WC 50, “Election Not to Accept Coverage Under Kansas Workers Compensation Act by Employee Who Owns 10% or More of Corporate Stock of Corporate Employer.” It is cancelled with Form K-WC 50-A. Owners who want to opt in use Form K-WC 113.. It is filed with Kansas Department of Labor, Division of Workers Compensation.
The form can be emailed to [email protected], faxed to 785-296-0025, mailed to the address printed on the form, or filed through the Division’s OSCAR system. A copy must also be given to the employer. The election takes effect when the Division receives it. https://www.dol.ks.gov/workers-compensation/overview. Renewal: The election does not need to be renewed.
It stays in effect for as long as the person works for that corporation, or until they cancel it with Form K-WC 50-A (K.S.A. 44-543).. Filing on the state’s own site costs nothing beyond any statutory fee — the “exemption filing services” that advertise on this search charge for the same form.
Kansas Workers Comp Exemption Rules at a Glance
The exact Kansas workers comp exemption rules every owner should check before deciding to go without coverage:
| Employee threshold | 1 (Kansas uses a payroll test, not a headcount test. An employer must have coverage once its gross annual payroll is more than 20000. Payroll paid both in Kansas and in other states counts, under K.S.A. 44-505) |
| Who may elect out | Sole proprietors, partners and LLC members are left out of coverage automatically. Each one may choose to be covered by having their policy clearly include them (K.S.A. 44-542a). A corporate employee who owns 10 percent or more of the company’s outstanding stock may choose to opt out of coverage (K.S.A. 44-543). Officers who own less than 10 percent must be covered. The statute does not limit how many officers may opt out. |
| Corporate officers | K.S.A. 44-543. Any employee of a corporation who owns 10 percent or more of its outstanding stock may file a written statement with the director, before any injury, choosing not to accept the Workers Compensation Act. A copy must be filed with the employer at the same time. The choice is valid only while the person works for that employer. It can be reversed by filing a new written statement with the director and the employer. Any contract that makes opting out a condition of employment is void. Even when officers opt out, their wages still count toward the corporation’s 20000 payroll threshold. |
| LLC members and partners | K.S.A. 44-542a. Individual employers, partners, LLC members and self-employed people are outside the Act by default. They may choose to be covered by buying insurance that clearly shows the intent to cover them under K.S.A. 44-532(b)(1). The state election form for this is K-WC 113, “Election of Individual, Partner, Member of an LLC or Self-Employed Individual.” |
| Form | K-WC 50, “Election Not to Accept Coverage Under Kansas Workers Compensation Act by Employee Who Owns 10% or More of Corporate Stock of Corporate Employer.” It is cancelled with Form K-WC 50-A. Owners who want to opt in use Form K-WC 113. |
| Where to file | Kansas Department of Labor, Division of Workers Compensation. The form can be emailed to [email protected], faxed to 785-296-0025, mailed to the address printed on the form, or filed through the Division’s OSCAR system. A copy must also be given to the employer. The election takes effect when the Division receives it. https://www.dol.ks.gov/workers-compensation/overview |
| Renewal | The election does not need to be renewed. It stays in effect for as long as the person works for that corporation, or until they cancel it with Form K-WC 50-A (K.S.A. 44-543). |
| Proof of exemption or coverage | The insurer issues a certificate of insurance. Anyone can check coverage free on KDOL’s online Proof of Coverage tool by business name or FEIN (dol.ks.gov). An exempt officer can show a copy of the K-WC 50 filed with the Division. The Division’s compliance unit can be reached at 785-296-4000 option 4 or [email protected]. |
What A Kansas Workers Comp Exemption Gives Up
An exempt owner who is hurt on the job in Kansas has no workers’ comp claim: no medical coverage from the policy, no wage replacement and no disability award. Health insurance may exclude work injuries. Most owners who physically work the job keep themselves covered for that reason.
One honest paragraph on the “ghost policy”: a minimum-premium policy with no employees sold to owners who need a certificate of insurance. It is legal in many states, but it is not a Kansas workers comp exemption — it is coverage with nobody on it. If you add a worker, it must be reported, or the audit will find them.
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Workers Exempt by Law in Kansas
Separate from the owner’s election, Kansas law exempts some classes of workers from coverage — commonly domestic workers below a threshold, casual labor, some farm labor and licensed real-estate agents paid by commission. A worker who does not fit a listed class counts toward the threshold, no matter what the 1099 says.
Proving A Kansas Workers Comp Exemption or Coverage
The insurer issues a certificate of insurance. Anyone can check coverage free on KDOL’s online Proof of Coverage tool by business name or FEIN (dol.ks.gov). An exempt officer can show a copy of the K-WC 50 filed with the Division. The Division’s compliance unit can be reached at 785-296-4000 option 4 or [email protected].
Why the Kansas Workers Comp Exemption Matters
The Kansas workers comp exemption is a trade: lower cost today against no safety net if you are hurt. The second half of the trade is the one the search results never lead with. If the Kansas workers comp exemption rules above leave any doubt about whether a worker counts, ask the state agency before you decide — the answer is free, and the penalty for guessing wrong is not.
Employer side: the Kansas requirements guide covers the threshold, who counts and the penalties in full. Hurt while exempt? You may still have a claim against a third party — a licensed attorney can say.
Frequently Asked Questions
Who can file a workers comp exemption in Kansas?
Sole proprietors, partners and LLC members are left out of coverage automatically. Each one may choose to be covered by having their policy clearly include them (K.S.A. 44-542a). A corporate employee who owns 10 percent or more of the company’s outstanding stock may choose to opt out of coverage (K.S.A. 44-543). Officers who own less than 10 percent must be covered.
The statute does not limit how many officers may opt out.
What form is the Kansas workers comp exemption?
K-WC 50, “Election Not to Accept Coverage Under Kansas Workers Compensation Act by Employee Who Owns 10% or More of Corporate Stock of Corporate Employer.” It is cancelled with Form K-WC 50-A. Owners who want to opt in use Form K-WC 113.. File it on the state’s own site; filing services charge for the same form.
Can an exempt owner in Kansas still collect benefits if hurt?
No. An exemption removes the owner from coverage, so there is no claim for medical care or lost wages. That is the trade.
Official Kansas Sources & Resources
- Kansas Kansas Department of Labor, Division of Workers Compensation: https://www.dol.ks.gov/workers-compensation/overview
- Kansas Workers’ Comp Statute: https://ksrevisor.gov/statutes/chapters/ch44/044_005_0043.html
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
This Kansas workers comp exemption guide was last verified against official Kansas sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
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Disclaimer: This guide is informational only and is not legal, medical, or financial advice. Workers Comp Explained is an independent educational resource, not a law firm or insurer. Workers’ comp benefits, settlement values, deadlines, and requirements vary by state and by the specific facts of your injury and change over time, and any settlement figures here are illustrative only.
Confirm your rights and any deadline with your state’s workers’ compensation board and a licensed attorney before you act.