A Massachusetts workers comp exemption lets certain business owners legally go without workers’ compensation coverage on themselves — Sole proprietors, partners (including LLP partners) and LLC members are not required to carry coverage for themselves, so they don’t need to file anything. Corporate officers or directors who own at least 25% of the issued and outstanding stock may exempt themselves by filing Form 153.
No more than 4 such officers or directors may be named on one Form 153, and every officer or director owning 25% or more must be listed and must sign. Any employee who is not an owner must still be covered, no matter how many hours they work or how many employees there are.
Family members who work in the business must also be covered, even if they are the only employees. — while the law still requires coverage for employees once a business has 1 or more. This guide explains who qualifies for the Massachusetts workers comp exemption, the exact form, where to file it, what it costs, and what an exempt owner gives up. Verified against Massachusetts sources as of October 2026.
Massachusetts at a Glance
| Coverage required at | 1 employee(s) |
| Who may elect out | Sole proprietors, partners (including LLP partners) and LLC members are not required to carry coverage for themselves, so they don’t need to file anything. Corporate officers or directors who own at least 25% of the issued and outstanding stock may exempt themselves by filing Form 153. No more than 4 such officers or directors may be named on one Form 153, and every officer or director owning 25% or more must be listed and must sign. Any employee who is not an owner must still be covered, no matter how many hours they work or how many employees there are. Family members who work in the business must also be covered, even if they are the only employees. |
| Exemption form | Form 153, Affidavit of Exemption for Certain Corporate Officers or Directors (Massachusetts Department of Industrial Accidents). Sole proprietors, partners and LLC members file no exemption form. For building permits and municipal licenses, they instead check the matching status box on the DIA “Workers’ Compensation Insurance Affidavit” (General Businesses version, or Builders/Contractors/Electricians/Plumbers version). |
| Filed with | Form 153 goes to the Department of Industrial Accidents, Office of Investigations. You can email it to [email protected], fax it to (617) 727-7749, deliver it in person, or mail it to the address printed on the form. Form and instructions: https://www.mass.gov/how-to/request-an-exemption-from-workers-compensation-coverage. If the corporation has a policy, it must also give a copy of the approved Form 153 to its insurer. The Workers’ Compensation Insurance Affidavit for permits and licenses is filed with the city or town issuing the permit or license, not with the DIA. |
| Renewal | No fixed expiration was found. If the corporation has a policy, a copy of the Form 153 should go to the insurer every year before the policy renews, to confirm the statements still hold. If any officer’s or director’s status changes, a new Form 153 must be filed with the DIA and given to the insurer. |
| Penalty for being uninsured | Under M.G.L. c. 152, §25C, the DIA issues a stop work order shutting down all business operations at the workplace or job site. The civil penalty is 100 per day, starting the day the order is served and running until the penalty is paid and proof of insurance is shown. The employer may appeal within 10 days, and a hearing follows within 14 days. If the stop work order is upheld, the penalty becomes 250 per day of noncompliance. Criminal penalty: a fine of up to 1500, up to 1 year in prison, or both. Continuing to go uninsured after being punished counts as a new violation. |
In This Massachusetts Guide:
Who Qualifies for A Massachusetts Workers Comp Exemption
Sole proprietors, partners (including LLP partners) and LLC members are not required to carry coverage for themselves, so they don’t need to file anything. Corporate officers or directors who own at least 25% of the issued and outstanding stock may exempt themselves by filing Form 153.
No more than 4 such officers or directors may be named on one Form 153, and every officer or director owning 25% or more must be listed and must sign. Any employee who is not an owner must still be covered, no matter how many hours they work or how many employees there are.
Family members who work in the business must also be covered, even if they are the only employees.
Under M.G.L. c. 152, §1(4), coverage is optional for an officer or director of a corporation who owns at least 25% of the issued and outstanding stock. This applies only if that officer gives the Commissioner of the Department of Industrial Accidents a written waiver of their rights under chapter 152, which is done on Form 153.
All eligible officers must sign and check “exempt” or “not exempt.” A corporation whose only workers are exempted officers may legally operate without coverage. Once it hires anyone else, those workers must be covered.
LLC members, LLP partners and sole proprietors of an unincorporated business are not required to carry workers’ comp for themselves, and no exemption form is needed. Anyone working for the LLC or LLP who is not a member or partner must be covered.
How to File the Massachusetts Workers Comp Exemption
The form is Form 153, Affidavit of Exemption for Certain Corporate Officers or Directors (Massachusetts Department of Industrial Accidents). Sole proprietors, partners and LLC members file no exemption form. For building permits and municipal licenses, they instead check the matching status box on the DIA “Workers’ Compensation Insurance Affidavit” (General Businesses version, or Builders/Contractors/Electricians/Plumbers version)..
It is filed with Form 153 goes to the Department of Industrial Accidents, Office of Investigations. You can email it to [email protected], fax it to (617) 727-7749, deliver it in person, or mail it to the address printed on the form. Form and instructions: https://www.mass.gov/how-to/request-an-exemption-from-workers-compensation-coverage. If the corporation has a policy, it must also give a copy of the approved Form 153 to its insurer.
The Workers’ Compensation Insurance Affidavit for permits and licenses is filed with the city or town issuing the permit or license, not with the DIA.. Renewal: No fixed expiration was found. If the corporation has a policy, a copy of the Form 153 should go to the insurer every year before the policy renews, to confirm the statements still hold.
If any officer’s or director’s status changes, a new Form 153 must be filed with the DIA and given to the insurer.. 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.
Massachusetts Workers Comp Exemption Rules at a Glance
The exact Massachusetts workers comp exemption rules every owner should check before deciding to go without coverage:
| Employee threshold | 1 |
| Who may elect out | Sole proprietors, partners (including LLP partners) and LLC members are not required to carry coverage for themselves, so they don’t need to file anything. Corporate officers or directors who own at least 25% of the issued and outstanding stock may exempt themselves by filing Form 153. No more than 4 such officers or directors may be named on one Form 153, and every officer or director owning 25% or more must be listed and must sign. Any employee who is not an owner must still be covered, no matter how many hours they work or how many employees there are. Family members who work in the business must also be covered, even if they are the only employees. |
| Corporate officers | Under M.G.L. c. 152, §1(4), coverage is optional for an officer or director of a corporation who owns at least 25% of the issued and outstanding stock. This applies only if that officer gives the Commissioner of the Department of Industrial Accidents a written waiver of their rights under chapter 152, which is done on Form 153. All eligible officers must sign and check “exempt” or “not exempt.” A corporation whose only workers are exempted officers may legally operate without coverage. Once it hires anyone else, those workers must be covered. |
| LLC members and partners | LLC members, LLP partners and sole proprietors of an unincorporated business are not required to carry workers’ comp for themselves, and no exemption form is needed. Anyone working for the LLC or LLP who is not a member or partner must be covered. |
| Form | Form 153, Affidavit of Exemption for Certain Corporate Officers or Directors (Massachusetts Department of Industrial Accidents). Sole proprietors, partners and LLC members file no exemption form. For building permits and municipal licenses, they instead check the matching status box on the DIA “Workers’ Compensation Insurance Affidavit” (General Businesses version, or Builders/Contractors/Electricians/Plumbers version). |
| Where to file | Form 153 goes to the Department of Industrial Accidents, Office of Investigations. You can email it to [email protected], fax it to (617) 727-7749, deliver it in person, or mail it to the address printed on the form. Form and instructions: https://www.mass.gov/how-to/request-an-exemption-from-workers-compensation-coverage. If the corporation has a policy, it must also give a copy of the approved Form 153 to its insurer. The Workers’ Compensation Insurance Affidavit for permits and licenses is filed with the city or town issuing the permit or license, not with the DIA. |
| Renewal | No fixed expiration was found. If the corporation has a policy, a copy of the Form 153 should go to the insurer every year before the policy renews, to confirm the statements still hold. If any officer’s or director’s status changes, a new Form 153 must be filed with the DIA and given to the insurer. |
| Proof of exemption or coverage | Insured businesses show a certificate of insurance from their insurer, and the policy can be checked with the DIA’s online Proof of Coverage lookup (DIA Office of Investigations). Exempt corporate officers show their approved Form 153. For building permits and licenses, the applicant files the DIA Workers’ Compensation Insurance Affidavit with the city or town, either listing the insurer, policy number and expiration date, or checking a status such as sole proprietor or partnership with no employees, or homeowner doing all work. Out-of-state employers whose policy lists Massachusetts under Item 3C need their insurer to submit Form 154. |
What A Massachusetts Workers Comp Exemption Gives Up
An exempt owner who is hurt on the job in Massachusetts 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 Massachusetts 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.
Workers Exempt by Law in Massachusetts
Separate from the owner’s election, Massachusetts 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.
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Proving A Massachusetts Workers Comp Exemption or Coverage
Insured businesses show a certificate of insurance from their insurer, and the policy can be checked with the DIA’s online Proof of Coverage lookup (DIA Office of Investigations). Exempt corporate officers show their approved Form 153.
For building permits and licenses, the applicant files the DIA Workers’ Compensation Insurance Affidavit with the city or town, either listing the insurer, policy number and expiration date, or checking a status such as sole proprietor or partnership with no employees, or homeowner doing all work. Out-of-state employers whose policy lists Massachusetts under Item 3C need their insurer to submit Form 154.
Why the Massachusetts Workers Comp Exemption Matters
The Massachusetts 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. Massachusetts requires coverage starting with 1 employee, no matter how many hours they work. The only hour-based exception is domestic workers under 16 hours per week.
Family members must be covered even when they are the only workers. Only one Form 153 route exists (corporate officers or directors owning 25% or more, at most 4 per form), and all qualifying owners must be named and sign. Cities and towns must collect a DIA Workers’ Compensation Insurance Affidavit before issuing building permits and many business licenses.
Out-of-state employers working in Massachusetts need their insurer to file Form 154. This is general reference only, so confirm your situation with the DIA and a licensed attorney. If the Massachusetts 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 Massachusetts 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 Massachusetts?
Sole proprietors, partners (including LLP partners) and LLC members are not required to carry coverage for themselves, so they don’t need to file anything. Corporate officers or directors who own at least 25% of the issued and outstanding stock may exempt themselves by filing Form 153.
No more than 4 such officers or directors may be named on one Form 153, and every officer or director owning 25% or more must be listed and must sign. Any employee who is not an owner must still be covered, no matter how many hours they work or how many employees there are.
Family members who work in the business must also be covered, even if they are the only employees.
What form is the Massachusetts workers comp exemption?
Form 153, Affidavit of Exemption for Certain Corporate Officers or Directors (Massachusetts Department of Industrial Accidents). Sole proprietors, partners and LLC members file no exemption form. For building permits and municipal licenses, they instead check the matching status box on the DIA “Workers’ Compensation Insurance Affidavit” (General Businesses version, or Builders/Contractors/Electricians/Plumbers version).. File it on the state’s own site; filing services charge for the same form.
Can an exempt owner in Massachusetts 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 Massachusetts Sources & Resources
- Massachusetts Massachusetts Department of Industrial Accidents (DIA): https://www.mass.gov/orgs/department-of-industrial-accidents
- Massachusetts Workers’ Comp Statute: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter152/Section1
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
This Massachusetts workers comp exemption guide was last verified against official Massachusetts 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.