A Virginia workers comp exemption lets certain business owners legally go without workers’ compensation coverage on themselves — Coverage is required once an employer regularly employs 3 or more part-time or full-time employees. Separately, owners can affect their own coverage. Sole proprietors and partners are not covered by default; they are covered only if they elect coverage under the business’s policy and notify the insurer.
Corporate executive officers (president, vice-president, secretary, treasurer or other elected or appointed officer) and LLC managers count as employees, but each may individually reject coverage on Form 16A. Directors, chairmen and plain LLC members cannot use Form 16A. Virginia sets no ownership-percentage or officer-count limit. — while the law still requires coverage for employees once a business has 3 or more.
This guide explains who qualifies for the Virginia workers comp exemption, the exact form, where to file it, what it costs, and what an exempt owner gives up. Verified against Virginia sources as of October 2026.
Virginia at a Glance
| Coverage required at | 3 employee(s) |
| Who may elect out | Coverage is required once an employer regularly employs 3 or more part-time or full-time employees. Separately, owners can affect their own coverage. Sole proprietors and partners are not covered by default; they are covered only if they elect coverage under the business’s policy and notify the insurer. Corporate executive officers (president, vice-president, secretary, treasurer or other elected or appointed officer) and LLC managers count as employees, but each may individually reject coverage on Form 16A. Directors, chairmen and plain LLC members cannot use Form 16A. Virginia sets no ownership-percentage or officer-count limit. |
| Exemption form | Form 16A, “Officer/Manager Rejection of Coverage” (current revision 01/25). This form is only for corporate executive officers and LLC managers. Virginia has no exemption or waiver form for employers below the 3-employee threshold or for sole proprietors with no employees. |
| Filed with | The officer serves Form 16A on the employer, and a copy is filed with the Virginia Workers’ Compensation Commission. The Commission offers an online version and a paper version: https://workcomp.virginia.gov/forms/rejection-coverage-form-16a-online and https://workcomp.virginia.gov/forms/rejection-coverage-form-16a. Both the officer and an employer representative must sign, and the employer must have a current workers’ compensation policy. A sole proprietor or partner who wants coverage elects it through the insurer on the policy. |
| Penalty for being uninsured | Under Va. Code § 65.2-805, a civil penalty of up to 250 per day of noncompliance, with a maximum of 50000. Under Va. Code § 65.2-806, knowingly and intentionally failing to insure is a Class 2 misdemeanor, punishable by up to 6 months in jail and a fine of up to 1000. |
In This Virginia Guide:
Who Qualifies for A Virginia Workers Comp Exemption
Coverage is required once an employer regularly employs 3 or more part-time or full-time employees. Separately, owners can affect their own coverage. Sole proprietors and partners are not covered by default; they are covered only if they elect coverage under the business’s policy and notify the insurer.
Corporate executive officers (president, vice-president, secretary, treasurer or other elected or appointed officer) and LLC managers count as employees, but each may individually reject coverage on Form 16A. Directors, chairmen and plain LLC members cannot use Form 16A. Virginia sets no ownership-percentage or officer-count limit.
Va. Code § 65.2-300 lets an executive officer reject coverage. The officer must give notice to the employer before an accident, either by registered letter or personal delivery, and file a copy with the Commission. Rejection covers injury or death by accident only; occupational disease stays covered.
Under § 65.2-101, an executive officer who rejects coverage and is not paid regular, agreed salary or wages is not counted as an employee toward the 3-employee threshold.
An LLC manager elected or appointed under the articles of organization or operating agreement is an “executive officer”. The manager is covered as an employee but may reject coverage on Form 16A under § 65.2-300. A plain LLC member cannot file Form 16A; the Commission notes the statute is silent on multi-member LLCs.
Partners, like sole proprietors, are not covered unless they elect coverage under the business’s policy and notify the insurer (§ 65.2-101).
How to File the Virginia Workers Comp Exemption
The form is Form 16A, “Officer/Manager Rejection of Coverage” (current revision 01/25). This form is only for corporate executive officers and LLC managers. Virginia has no exemption or waiver form for employers below the 3-employee threshold or for sole proprietors with no employees.. It is filed with The officer serves Form 16A on the employer, and a copy is filed with the Virginia Workers’ Compensation Commission.
The Commission offers an online version and a paper version: https://workcomp.virginia.gov/forms/rejection-coverage-form-16a-online and https://workcomp.virginia.gov/forms/rejection-coverage-form-16a. Both the officer and an employer representative must sign, and the employer must have a current workers’ compensation policy. A sole proprietor or partner who wants coverage elects it through the insurer on the policy..
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.
Virginia Workers Comp Exemption Rules at a Glance
The exact Virginia workers comp exemption rules every owner should check before deciding to go without coverage:
| Employee threshold | 3 |
| Who may elect out | Coverage is required once an employer regularly employs 3 or more part-time or full-time employees. Separately, owners can affect their own coverage. Sole proprietors and partners are not covered by default; they are covered only if they elect coverage under the business’s policy and notify the insurer. Corporate executive officers (president, vice-president, secretary, treasurer or other elected or appointed officer) and LLC managers count as employees, but each may individually reject coverage on Form 16A. Directors, chairmen and plain LLC members cannot use Form 16A. Virginia sets no ownership-percentage or officer-count limit. |
| Corporate officers | Va. Code § 65.2-300 lets an executive officer reject coverage. The officer must give notice to the employer before an accident, either by registered letter or personal delivery, and file a copy with the Commission. Rejection covers injury or death by accident only; occupational disease stays covered. Under § 65.2-101, an executive officer who rejects coverage and is not paid regular, agreed salary or wages is not counted as an employee toward the 3-employee threshold. |
| LLC members and partners | An LLC manager elected or appointed under the articles of organization or operating agreement is an “executive officer”. The manager is covered as an employee but may reject coverage on Form 16A under § 65.2-300. A plain LLC member cannot file Form 16A; the Commission notes the statute is silent on multi-member LLCs. Partners, like sole proprietors, are not covered unless they elect coverage under the business’s policy and notify the insurer (§ 65.2-101). |
| Workers exempt by law | Under Va. Code § 65.2-101, these workers are excluded: casual employees; domestic servants; farm and horticultural laborers, unless the employer regularly has more than 3 full-time employees; licensed real estate salespersons and associated brokers who meet three conditions (paid substantially all by commission, written independent-contractor contract, and not treated as employees for federal income tax); and taxicab and executive sedan drivers, under conditions in the statute. True independent contractors are not employees, but a statutory-employer analysis can still bring subcontracted workers within coverage. |
| Form | Form 16A, “Officer/Manager Rejection of Coverage” (current revision 01/25). This form is only for corporate executive officers and LLC managers. Virginia has no exemption or waiver form for employers below the 3-employee threshold or for sole proprietors with no employees. |
| Where to file | The officer serves Form 16A on the employer, and a copy is filed with the Virginia Workers’ Compensation Commission. The Commission offers an online version and a paper version: https://workcomp.virginia.gov/forms/rejection-coverage-form-16a-online and https://workcomp.virginia.gov/forms/rejection-coverage-form-16a. Both the officer and an employer representative must sign, and the employer must have a current workers’ compensation policy. A sole proprietor or partner who wants coverage elects it through the insurer on the policy. |
| Proof of exemption or coverage | The employer shows a certificate of insurance from its carrier. The Commission also offers an online employer insurance coverage lookup at workcomp.virginia.gov. Virginia issues no exemption certificate. An officer’s rejection is shown by the filed Form 16A, which still requires an active policy. |
What A Virginia Workers Comp Exemption Gives Up
An officer or manager who rejects coverage gets no workers’ compensation benefits for injury or death by accident; occupational disease remains covered. A sole proprietor or partner who doesn’t elect coverage has no benefits under the business’s policy. Whether rejecting coverage restores a right to sue in civil court wasn’t verified; confirm with the Commission and a licensed attorney.
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 Virginia 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 Virginia
Under Va. Code § 65.2-101, these workers are excluded: casual employees; domestic servants; farm and horticultural laborers, unless the employer regularly has more than 3 full-time employees; licensed real estate salespersons and associated brokers who meet three conditions (paid substantially all by commission, written independent-contractor contract, and not treated as employees for federal income tax); and taxicab and executive sedan drivers, under conditions in the statute.
True independent contractors are not employees, but a statutory-employer analysis can still bring subcontracted workers within coverage.
Proving A Virginia Workers Comp Exemption or Coverage
The employer shows a certificate of insurance from its carrier. The Commission also offers an online employer insurance coverage lookup at workcomp.virginia.gov. Virginia issues no exemption certificate. An officer’s rejection is shown by the filed Form 16A, which still requires an active policy.
Why the Virginia Workers Comp Exemption Matters
The Virginia 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. Rejecting coverage in Virginia only works for injury by accident and never for occupational disease. Form 16A requires an active policy, so it can’t be used to avoid buying insurance. Under-threshold employers get no exemption paperwork.
Subcontracted workers can count toward a general contractor’s 3-employee threshold under the statutory-employer rules. The employee definition, including the officer, manager, sole proprietor and partner rules, is at https://law.lis.virginia.gov/vacode/title65.2/chapter1/section65.2-101/. If the Virginia 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 Virginia 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 Virginia?
Coverage is required once an employer regularly employs 3 or more part-time or full-time employees. Separately, owners can affect their own coverage. Sole proprietors and partners are not covered by default; they are covered only if they elect coverage under the business’s policy and notify the insurer.
Corporate executive officers (president, vice-president, secretary, treasurer or other elected or appointed officer) and LLC managers count as employees, but each may individually reject coverage on Form 16A. Directors, chairmen and plain LLC members cannot use Form 16A. Virginia sets no ownership-percentage or officer-count limit.
What form is the Virginia workers comp exemption?
Form 16A, “Officer/Manager Rejection of Coverage” (current revision 01/25). This form is only for corporate executive officers and LLC managers. Virginia has no exemption or waiver form for employers below the 3-employee threshold or for sole proprietors with no employees.. File it on the state’s own site; filing services charge for the same form.
Can an exempt owner in Virginia 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 Virginia Sources & Resources
- Virginia Virginia Workers’ Compensation Commission (VWC): https://workcomp.virginia.gov
- Virginia Workers’ Comp Statute: https://law.lis.virginia.gov/vacode/title65.2/chapter3/section65.2-300/
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
This Virginia workers comp exemption guide was last verified against official Virginia 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.