An Alaska workers comp exemption lets certain business owners legally go without workers’ compensation coverage on themselves — Alaska has no “opt out” for employers with employees, but some owners are not counted as employees. (1) A sole proprietor or partner is not required to have coverage when they are the only people doing the work for the business.
They may choose to be covered by applying in writing to an insurer (AS 23.30.239). (2) A corporate executive officer or LLC member is automatically not an employee if they own at least 10 percent of the business (AS 23.30.240(a)). An officer or member who owns less than 10 percent is an employee and must be insured.
There is no limit on how many officers can be excluded; the 10 percent ownership test is the only limit. (3) Executive officers of municipal corporations and nonprofit corporations (charitable, religious, educational or other) are not employees, whatever they own. Only individual people can be exempt.
A whole business can never be exempt, even when it is a shareholder of another business. — while the law still requires coverage for employees once a business has 1 (Alaska requires coverage from the first employee. The Division’s Employer’s Guide says “There are no exemptions for a certain number of employees or for the number of days or hours worked by employees.” Part-time and temporary employees count.
Coverage is required under AS 23.30.075(a).) or more. This guide explains who qualifies for the Alaska workers comp exemption, the exact form, where to file it, what it costs, and what an exempt owner gives up. Verified against Alaska sources as of October 2026.
Alaska at a Glance
| Coverage required at | 1 (Alaska requires coverage from the first employee. The Division’s Employer’s Guide says “There are no exemptions for a certain number of employees or for the number of days or hours worked by employees.” Part-time and temporary employees count. Coverage is required under AS 23.30.075(a).) employee(s) |
| Who may elect out | Alaska has no “opt out” for employers with employees, but some owners are not counted as employees. (1) A sole proprietor or partner is not required to have coverage when they are the only people doing the work for the business. They may choose to be covered by applying in writing to an insurer (AS 23.30.239). (2) A corporate executive officer or LLC member is automatically not an employee if they own at least 10 percent of the business (AS 23.30.240(a)). An officer or member who owns less than 10 percent is an employee and must be insured. There is no limit on how many officers can be excluded; the 10 percent ownership test is the only limit. (3) Executive officers of municipal corporations and nonprofit corporations (charitable, religious, educational or other) are not employees, whatever they own. Only individual people can be exempt. A whole business can never be exempt, even when it is a shareholder of another business. |
| Exemption form | NONE. No state exemption form or certificate exists today. Officer and LLC member exemptions are automatic under AS 23.30.240 once the 10 percent ownership test is met. Choosing to add coverage, or for a sole proprietor or partner to opt in, is done in writing with the insurer on the policy. The former “Petition for Executive Officer Waiver,” Form 07-6131, was discontinued after July 31, 2019. Construction contractors fill out the licensing form 08-4815c “Workers’ Compensation Worksheet” (rev. 7/30/19) for the Division of Corporations, Business and Professional Licensing. That form records whether they have employees and coverage; it is not an exemption form. |
| Filed with | Nothing is filed with the Division of Workers’ Compensation to be exempt. Choosing to cover an exempt officer or member, or a proprietor or partner opting in, goes to the insurer (AS 23.30.239(a), AS 23.30.240(b)). For enforcement, the Division looks at the business’s registration with the Division of Corporations, Business and Professional Licensing (CBPL). That registration must be current, active and in good standing, with listed ownership adding up to 100 percent. Construction contractors file the 08-4815c worksheet with the CBPL Construction Contractors Program, PO Box 110806, Juneau AK 99811-0806, https://www.commerce.alaska.gov/web/cbpl/professionallicensing/constructioncontractors.aspx |
| Filing fee | Free |
| Renewal | NONE for the exemption itself, because it is automatic and continues while the 10 percent ownership holds. A choice to cover an officer or member lasts for the policy term (AS 23.30.240(b)). For licensed construction contractors, CBPL checks ownership at each two-year license renewal. |
| Penalty for being uninsured | Civil penalty of up to 1000 for each employee for each day worked without coverage (AS 23.30.080(f)). The Division’s guide describes the range as 10 to 1000. A stop order bars the use of employee labor (AS 23.30.080(d)–(e)). Breaking a stop order brings a civil penalty of 1000 a day and a 3-year ban from state and local public contracts. Criminal penalty on conviction: a 10000 fine and up to 1 year in prison (AS 23.30.075(b)). Corporate officers with authority to buy coverage are personally, jointly and severally liable for benefits. An injured employee may sue an uninsured employer in court instead of claiming comp (AS 23.30.055). In that lawsuit the employer loses its usual defenses and is presumed negligent (AS 23.30.080(a)–(c)). The limitation period for failure-to-insure actions is 6 years. The Benefits Guaranty Fund pays uninsured claims and then collects the money back from the employer. The guide says it is a felony for an uninsured employer to fail to pay benefits that are owed. |
In This Alaska Guide:
Who Qualifies for An Alaska Workers Comp Exemption
Alaska has no “opt out” for employers with employees, but some owners are not counted as employees. (1) A sole proprietor or partner is not required to have coverage when they are the only people doing the work for the business. They may choose to be covered by applying in writing to an insurer (AS 23.30.239).
(2) A corporate executive officer or LLC member is automatically not an employee if they own at least 10 percent of the business (AS 23.30.240(a)). An officer or member who owns less than 10 percent is an employee and must be insured. There is no limit on how many officers can be excluded; the 10 percent ownership test is the only limit.
(3) Executive officers of municipal corporations and nonprofit corporations (charitable, religious, educational or other) are not employees, whatever they own. Only individual people can be exempt. A whole business can never be exempt, even when it is a shareholder of another business.
AS 23.30.240(a), repealed and reenacted effective August 1, 2019. An executive officer “elected or appointed and empowered in accordance with the charter and bylaws of a corporation” is not an employee if the officer “owns at least 10 percent of the business entity.” Under AS 23.30.240(b), the corporation may choose to cover an exempt officer by naming the officer in the insurance contract.
That choice lasts for as long as the policy is in effect. The old Executive Officer Waiver program (8 AAC 45.184, Form 07-6131) was repealed. The Division stopped issuing waivers after July 31, 2019. The Employer’s Guide adds that “individual ownership interest in a parent company transfers to the subsidiary company.”
LLC members (LLCs organized under AS 10.50): the same 10 percent rule as officers applies under AS 23.30.240(a). A member who owns 10 percent or more is automatically not an employee. A member who owns less than 10 percent must be insured. The LLC can choose to cover an exempt member in its policy (AS 23.30.240(b)).
Partners: AS 23.30.239 says partners (and sole proprietors) are not employees unless they choose coverage. To do that they apply in writing to an insurer, which sets an assumed monthly wage. They can cancel by written notice to the insurer, and the cancellation takes effect the day after the notice is filed.
How to File the Alaska Workers Comp Exemption
The form is NONE. No state exemption form or certificate exists today. Officer and LLC member exemptions are automatic under AS 23.30.240 once the 10 percent ownership test is met. Choosing to add coverage, or for a sole proprietor or partner to opt in, is done in writing with the insurer on the policy. The former “Petition for Executive Officer Waiver,” Form 07-6131, was discontinued after July 31, 2019.
Construction contractors fill out the licensing form 08-4815c “Workers’ Compensation Worksheet” (rev. 7/30/19) for the Division of Corporations, Business and Professional Licensing. That form records whether they have employees and coverage; it is not an exemption form.. It is filed with Nothing is filed with the Division of Workers’ Compensation to be exempt.
Choosing to cover an exempt officer or member, or a proprietor or partner opting in, goes to the insurer (AS 23.30.239(a), AS 23.30.240(b)). For enforcement, the Division looks at the business’s registration with the Division of Corporations, Business and Professional Licensing (CBPL). That registration must be current, active and in good standing, with listed ownership adding up to 100 percent.
Construction contractors file the 08-4815c worksheet with the CBPL Construction Contractors Program, PO Box 110806, Juneau AK 99811-0806, https://www.commerce.alaska.gov/web/cbpl/professionallicensing/constructioncontractors.aspx. Filing is free. Renewal: NONE for the exemption itself, because it is automatic and continues while the 10 percent ownership holds. A choice to cover an officer or member lasts for the policy term (AS 23.30.240(b)). For licensed construction contractors, CBPL checks ownership at each two-year license renewal..
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.
Alaska Workers Comp Exemption Rules at a Glance
The exact Alaska workers comp exemption rules every owner should check before deciding to go without coverage:
| Employee threshold | 1 (Alaska requires coverage from the first employee. The Division’s Employer’s Guide says “There are no exemptions for a certain number of employees or for the number of days or hours worked by employees.” Part-time and temporary employees count. Coverage is required under AS 23.30.075(a).) |
| Who may elect out | Alaska has no “opt out” for employers with employees, but some owners are not counted as employees. (1) A sole proprietor or partner is not required to have coverage when they are the only people doing the work for the business. They may choose to be covered by applying in writing to an insurer (AS 23.30.239). (2) A corporate executive officer or LLC member is automatically not an employee if they own at least 10 percent of the business (AS 23.30.240(a)). An officer or member who owns less than 10 percent is an employee and must be insured. There is no limit on how many officers can be excluded; the 10 percent ownership test is the only limit. (3) Executive officers of municipal corporations and nonprofit corporations (charitable, religious, educational or other) are not employees, whatever they own. Only individual people can be exempt. A whole business can never be exempt, even when it is a shareholder of another business. |
| Corporate officers | AS 23.30.240(a), repealed and reenacted effective August 1, 2019. An executive officer “elected or appointed and empowered in accordance with the charter and bylaws of a corporation” is not an employee if the officer “owns at least 10 percent of the business entity.” Under AS 23.30.240(b), the corporation may choose to cover an exempt officer by naming the officer in the insurance contract. That choice lasts for as long as the policy is in effect. The old Executive Officer Waiver program (8 AAC 45.184, Form 07-6131) was repealed. The Division stopped issuing waivers after July 31, 2019. The Employer’s Guide adds that “individual ownership interest in a parent company transfers to the subsidiary company.” |
| LLC members and partners | LLC members (LLCs organized under AS 10.50): the same 10 percent rule as officers applies under AS 23.30.240(a). A member who owns 10 percent or more is automatically not an employee. A member who owns less than 10 percent must be insured. The LLC can choose to cover an exempt member in its policy (AS 23.30.240(b)). Partners: AS 23.30.239 says partners (and sole proprietors) are not employees unless they choose coverage. To do that they apply in writing to an insurer, which sets an assumed monthly wage. They can cancel by written notice to the insurer, and the cancellation takes effect the day after the notice is filed. |
| Workers exempt by law | AS 23.30.230(a) lists the people not covered: (1) part-time babysitters; (2) cleaning persons (per the Division, those cleaning a personal home who are hired directly by the resident, not business or commercial units); (3) harvest help and similar part-time or transient help; (4) contract sports officials at events where players are not paid; (5) contract entertainers; (6) commercial fishermen as defined in AS 16.05.940; (7) taxicab drivers whose pay and written contract meet AS 23.10.055(a)(13) and whose hours or areas are not restricted; (8) Alaska temporary assistance program participants doing required work activities, other than subsidized or unsubsidized work or on-the-job training; (9) professional hockey players and coaches who have qualifying team health coverage; (10) qualified real estate licensees paid by sales or output under a written contract saying they are not employees; (11) transportation network company (ride-share) drivers who transport passengers, which does not include couriers, personal shoppers or food delivery drivers; (12) independent contractors who meet all of criteria (A) through (G) and at least 2 of the 3 criteria in (H). There is no exemption for domestic workers in general, for agricultural workers beyond “harvest help,” or for family, friends or volunteers of a for-profit business. |
| Form | NONE. No state exemption form or certificate exists today. Officer and LLC member exemptions are automatic under AS 23.30.240 once the 10 percent ownership test is met. Choosing to add coverage, or for a sole proprietor or partner to opt in, is done in writing with the insurer on the policy. The former “Petition for Executive Officer Waiver,” Form 07-6131, was discontinued after July 31, 2019. Construction contractors fill out the licensing form 08-4815c “Workers’ Compensation Worksheet” (rev. 7/30/19) for the Division of Corporations, Business and Professional Licensing. That form records whether they have employees and coverage; it is not an exemption form. |
| Where to file | Nothing is filed with the Division of Workers’ Compensation to be exempt. Choosing to cover an exempt officer or member, or a proprietor or partner opting in, goes to the insurer (AS 23.30.239(a), AS 23.30.240(b)). For enforcement, the Division looks at the business’s registration with the Division of Corporations, Business and Professional Licensing (CBPL). That registration must be current, active and in good standing, with listed ownership adding up to 100 percent. Construction contractors file the 08-4815c worksheet with the CBPL Construction Contractors Program, PO Box 110806, Juneau AK 99811-0806, https://www.commerce.alaska.gov/web/cbpl/professionallicensing/constructioncontractors.aspx |
| Fee | Free |
| Renewal | NONE for the exemption itself, because it is automatic and continues while the 10 percent ownership holds. A choice to cover an officer or member lasts for the policy term (AS 23.30.240(b)). For licensed construction contractors, CBPL checks ownership at each two-year license renewal. |
| Proof of exemption or coverage | Covered employers give a certificate of insurance from their agent or broker. Anyone can check coverage on a given date with the Division’s Online Employer Coverage Verification Service at https://labor.alaska.gov/wc/exit.html. If a business is not found there, the Special Investigations Unit (907-269-4002) can run a compliance check. An exempt owner has no state exemption certificate. Proof is the business’s CBPL registration showing at least 10 percent ownership; contractors also have the license record with the 08-4815c worksheet. Without proof, a hiring contractor may be charged premium for an uninsured subcontractor’s workers and may be jointly liable for their injuries. |
What An Alaska Workers Comp Exemption Gives Up
An exempt owner, officer or member gets no Alaska workers’ comp benefits (medical, wage loss or death benefits) if hurt on the job. The CBPL exemption form wording reads “should an injury occur on a jobsite, I/we will not be eligible to seek benefits under the Alaska Workers’ Compensation Act.” An exempt owner is not an “employee,” so the exclusive-remedy rule in AS 23.30.055 does not cover them.
Whether they can sue anyone over their own injury is a separate question to take to a licensed attorney. Employees cannot give up their own benefits; the Division says any verbal or written agreement to do so is invalid.
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 an Alaska 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 Alaska
AS 23.30.230(a) lists the people not covered: (1) part-time babysitters; (2) cleaning persons (per the Division, those cleaning a personal home who are hired directly by the resident, not business or commercial units); (3) harvest help and similar part-time or transient help; (4) contract sports officials at events where players are not paid; (5) contract entertainers; (6) commercial fishermen as defined in AS 16.05.940;
📨 Get Free Workers Comp Guides Alerts
Free · No spam · Unsubscribe anytime
(7) taxicab drivers whose pay and written contract meet AS 23.10.055(a)(13) and whose hours or areas are not restricted; (8) Alaska temporary assistance program participants doing required work activities, other than subsidized or unsubsidized work or on-the-job training; (9) professional hockey players and coaches who have qualifying team health coverage; (10) qualified real estate licensees paid by sales or output under a written contract saying they are not employees;
(11) transportation network company (ride-share) drivers who transport passengers, which does not include couriers, personal shoppers or food delivery drivers; (12) independent contractors who meet all of criteria (A) through (G) and at least 2 of the 3 criteria in (H).
There is no exemption for domestic workers in general, for agricultural workers beyond “harvest help,” or for family, friends or volunteers of a for-profit business.
Proving An Alaska Workers Comp Exemption or Coverage
Covered employers give a certificate of insurance from their agent or broker. Anyone can check coverage on a given date with the Division’s Online Employer Coverage Verification Service at https://labor.alaska.gov/wc/exit.html. If a business is not found there, the Special Investigations Unit (907-269-4002) can run a compliance check. An exempt owner has no state exemption certificate.
Proof is the business’s CBPL registration showing at least 10 percent ownership; contractors also have the license record with the 08-4815c worksheet. Without proof, a hiring contractor may be charged premium for an uninsured subcontractor’s workers and may be jointly liable for their injuries.
Why the Alaska Workers Comp Exemption Matters
The Alaska 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. (1) The 10 percent ownership test (in effect since August 1, 2019) replaced the old waiver system. Waivers issued before then stayed valid only until the policy then in force expired or was cancelled.
(2) Exemptions apply to individual people only, never to whole businesses, and parent and subsidiary companies are treated separately. (3) No industry is exempt, and nonprofits must insure their employees. (4) Employers may not charge employees any part of the premium; doing so is a misdemeanor. (5) Construction contractors that are corporations or LLCs and have employees must file a certificate of insurance with CBPL.
Insurance with an “All Other States” endorsement counts only if the certificate states it “covers activities in Alaska.” (6) A sole proprietor or partner who opts in carries the burden of proving their claim (AS 23.30.239(c)). This is general reference information, not legal advice; confirm with the Alaska Division of Workers’ Compensation and a licensed attorney.
If the Alaska 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 Alaska 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 Alaska?
Alaska has no “opt out” for employers with employees, but some owners are not counted as employees. (1) A sole proprietor or partner is not required to have coverage when they are the only people doing the work for the business. They may choose to be covered by applying in writing to an insurer (AS 23.30.239).
(2) A corporate executive officer or LLC member is automatically not an employee if they own at least 10 percent of the business (AS 23.30.240(a)). An officer or member who owns less than 10 percent is an employee and must be insured. There is no limit on how many officers can be excluded; the 10 percent ownership test is the only limit.
(3) Executive officers of municipal corporations and nonprofit corporations (charitable, religious, educational or other) are not employees, whatever they own. Only individual people can be exempt. A whole business can never be exempt, even when it is a shareholder of another business.
What form is the Alaska workers comp exemption?
NONE. No state exemption form or certificate exists today. Officer and LLC member exemptions are automatic under AS 23.30.240 once the 10 percent ownership test is met. Choosing to add coverage, or for a sole proprietor or partner to opt in, is done in writing with the insurer on the policy. The former “Petition for Executive Officer Waiver,” Form 07-6131, was discontinued after July 31, 2019.
Construction contractors fill out the licensing form 08-4815c “Workers’ Compensation Worksheet” (rev. 7/30/19) for the Division of Corporations, Business and Professional Licensing. That form records whether they have employees and coverage; it is not an exemption form.. File it on the state’s own site; filing services charge for the same form.
Can an exempt owner in Alaska 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 Alaska Sources & Resources
- Alaska Alaska Department of Labor and Workforce Development, Division of Workers’ Compensation (Alaska Workers’ Compensation Board; Special Investigations Unit): https://labor.alaska.gov/wc/
- Alaska Workers’ Comp Statute: https://www.akleg.gov/basis/statutes.asp#23.30.240
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
This Alaska workers comp exemption guide was last verified against official Alaska sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
You May Also Like
More Alaska Workers’ Comp Guides
- How to File an Alaska Workers’ Comp Claim
- Alaska Workers’ Comp Settlements
- Alaska Workers’ Comp Requirements (Employers)
- Workers’ Comp Guides for All 50 States
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.