An Arkansas workers comp exemption lets certain business owners legally go without workers’ compensation coverage on themselves — typically sole proprietors, partners, LLC members and corporate officers — while the law still requires coverage for employees once a business has 3 (Ark. Code Ann. § 11-9-102(11)).
The number is lower in some trades: 2 or more employees for anyone doing building or building-repair work, and 1 or more employees for a contractor who subcontracts any part of a contract or for a subcontractor. or more. This guide explains who qualifies for the Arkansas workers comp exemption, the exact form, where to file it, what it costs, and what an exempt owner gives up.
Verified against Arkansas sources as of October 2026.
Arkansas at a Glance
| Coverage required at | 3 (Ark. Code Ann. § 11-9-102(11)). The number is lower in some trades: 2 or more employees for anyone doing building or building-repair work, and 1 or more employees for a contractor who subcontracts any part of a contract or for a subcontractor. employee(s) |
| Exemption form | AWCC Form AR-A, “Application for Certificate of Non-Coverage”. It needs the applicant’s Social Security number, a notarized signature on an attached affidavit, an email address, a phone number and a description of the business. Corporate officers do not use Form AR-A; they elect on the policy through the carrier. |
| Filed with | Form AR-A is filed with the Arkansas Workers’ Compensation Commission, 324 South Spring Street, Little Rock, AR 72203 (phone 501-682-3930). Form and instructions: https://labor.arkansas.gov/workers-comp/awcc-certificates-of-noncoverage/ and https://labor.arkansas.gov/wp-content/uploads/forma_with_aff.pdf. Corporate-officer exclusions go to the insurance agent or carrier. |
| Filing fee | $50 (check or money order payable to the Arkansas Workers’ Compensation Commission) |
| Renewal | A Certificate of Non-Coverage is valid for 2 years from the effective date on its face and expires at midnight 2 years from issue. The effective and expiration dates are printed on the certificate. A new application is needed to renew it. A corporate officer’s exclusion generally follows the policy term with the carrier (confirm with your carrier). |
| Penalty for being uninsured | Under § 11-9-406, an employer required to carry coverage that fails to do so faces a fine of up to 10000, set by the Commission and paid to the Death and Permanent Total Disability Trust Fund, or is guilty of a Class D felony (up to 10000 fine and up to 6 years in prison). The Commission may also fine up to 1000 per day of violation. If the employer still doesn’t comply after a final order, the Commission may ask the Pulaski County Circuit Court, or the circuit court where the employer’s main place of business is, to stop the employer from employing anyone. Separately, under § 11-9-105(b), an injured worker of an uninsured employer may claim compensation or sue for damages. In that lawsuit the employer cannot use the fellow-servant, assumption-of-risk or contributory-negligence defenses. |
In This Arkansas Guide:
Who Qualifies for An Arkansas Workers Comp Exemption
Arkansas limits the election to owners with a real stake in the business; the table below lists the classes and any ownership-percentage or officer-count limit.
Corporate officers are the most common filers of an Arkansas workers comp exemption. The rule usually requires the officer to own a minimum share of the company and to file the election in writing before an injury, not after.
Sole proprietors, partners and LLC members who work as subcontractors may apply to the Arkansas Workers’ Compensation Commission (AWCC) for a Certificate of Non-Coverage (§ 11-9-102(9)(D) and § 11-9-402).
If they give a current certificate to the prime contractor, they are “conclusively presumed” not to be covered by the law or to be the prime contractor’s employees for the certificate’s term, and the prime contractor’s insurer is not liable for their injuries (§ 11-9-402). If they are not subcontractors, they handle any exclusion with their own policy’s carrier.
How to File the Arkansas Workers Comp Exemption
The form is AWCC Form AR-A, “Application for Certificate of Non-Coverage”. It needs the applicant’s Social Security number, a notarized signature on an attached affidavit, an email address, a phone number and a description of the business. Corporate officers do not use Form AR-A; they elect on the policy through the carrier..
It is filed with Form AR-A is filed with the Arkansas Workers’ Compensation Commission, 324 South Spring Street, Little Rock, AR 72203 (phone 501-682-3930). Form and instructions: https://labor.arkansas.gov/workers-comp/awcc-certificates-of-noncoverage/ and https://labor.arkansas.gov/wp-content/uploads/forma_with_aff.pdf. Corporate-officer exclusions go to the insurance agent or carrier.. The fee is $50 (check or money order payable to the Arkansas Workers’ Compensation Commission).
Renewal: A Certificate of Non-Coverage is valid for 2 years from the effective date on its face and expires at midnight 2 years from issue. The effective and expiration dates are printed on the certificate. A new application is needed to renew it. A corporate officer’s exclusion generally follows the policy term with the carrier (confirm with your carrier)..
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.
Arkansas Workers Comp Exemption Rules at a Glance
The exact Arkansas workers comp exemption rules every owner should check before deciding to go without coverage:
| Employee threshold | 3 (Ark. Code Ann. § 11-9-102(11)). The number is lower in some trades: 2 or more employees for anyone doing building or building-repair work, and 1 or more employees for a contractor who subcontracts any part of a contract or for a subcontractor. |
| LLC members and partners | Sole proprietors, partners and LLC members who work as subcontractors may apply to the Arkansas Workers’ Compensation Commission (AWCC) for a Certificate of Non-Coverage (§ 11-9-102(9)(D) and § 11-9-402). If they give a current certificate to the prime contractor, they are “conclusively presumed” not to be covered by the law or to be the prime contractor’s employees for the certificate’s term, and the prime contractor’s insurer is not liable for their injuries (§ 11-9-402). If they are not subcontractors, they handle any exclusion with their own policy’s carrier. |
| Form | AWCC Form AR-A, “Application for Certificate of Non-Coverage”. It needs the applicant’s Social Security number, a notarized signature on an attached affidavit, an email address, a phone number and a description of the business. Corporate officers do not use Form AR-A; they elect on the policy through the carrier. |
| Where to file | Form AR-A is filed with the Arkansas Workers’ Compensation Commission, 324 South Spring Street, Little Rock, AR 72203 (phone 501-682-3930). Form and instructions: https://labor.arkansas.gov/workers-comp/awcc-certificates-of-noncoverage/ and https://labor.arkansas.gov/wp-content/uploads/forma_with_aff.pdf. Corporate-officer exclusions go to the insurance agent or carrier. |
| Fee | $50 (check or money order payable to the Arkansas Workers’ Compensation Commission) |
| Renewal | A Certificate of Non-Coverage is valid for 2 years from the effective date on its face and expires at midnight 2 years from issue. The effective and expiration dates are printed on the certificate. A new application is needed to renew it. A corporate officer’s exclusion generally follows the policy term with the carrier (confirm with your carrier). |
| Proof of exemption or coverage | Insured employers show a certificate of insurance. Exempt subcontractors give the prime contractor a current AWCC Certificate of Non-Coverage. Contractors and clients can check either one online: the AWCC Coverage Verification Search (https://portal.arkansas.gov/service/ar-wc-insurance-coverage-verification/) and the Non-Coverage Certificate Holder Search (https://portal.arkansas.gov/service/ar-wc-insurance-non-coverage-cert-holder/). Both are listed at https://labor.arkansas.gov/workers-comp/awcc-online-searches/. |
What An Arkansas Workers Comp Exemption Gives Up
An exempt owner gives up workers’ compensation medical and wage-loss benefits for their own on-the-job injuries for as long as the exemption lasts. A subcontractor holding a CNC is presumed not to be an employee of the prime contractor, and the prime contractor’s insurer is not liable for their injuries (§ 11-9-402).
It is a felony for any employer or contractor to force an employee or subcontractor to get a CNC. Confirm your options with the AWCC and a licensed attorney.
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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 Arkansas 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 Arkansas
Separate from the owner’s election, Arkansas 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 An Arkansas Workers Comp Exemption or Coverage
Insured employers show a certificate of insurance. Exempt subcontractors give the prime contractor a current AWCC Certificate of Non-Coverage. Contractors and clients can check either one online: the AWCC Coverage Verification Search (https://portal.arkansas.gov/service/ar-wc-insurance-coverage-verification/) and the Non-Coverage Certificate Holder Search (https://portal.arkansas.gov/service/ar-wc-insurance-non-coverage-cert-holder/). Both are listed at https://labor.arkansas.gov/workers-comp/awcc-online-searches/.
Why the Arkansas Workers Comp Exemption Matters
The Arkansas 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 Arkansas 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 Arkansas 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 Arkansas?
Typically owners with a real stake — sole proprietors, partners, LLC members and qualifying corporate officers — not employees. See the table for Arkansas’s rule.
What form is the Arkansas workers comp exemption?
AWCC Form AR-A, “Application for Certificate of Non-Coverage”. It needs the applicant’s Social Security number, a notarized signature on an attached affidavit, an email address, a phone number and a description of the business. Corporate officers do not use Form AR-A; they elect on the policy through the carrier.. File it on the state’s own site; filing services charge for the same form.
Can an exempt owner in Arkansas 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 Arkansas Sources & Resources
- Arkansas Arkansas Workers’ Compensation Commission (AWCC), Arkansas Department of Labor and Licensing: https://labor.arkansas.gov/workers-comp/
- Arkansas Workers’ Comp Statute: https://law.justia.com/codes/arkansas/title-11/chapter-9/subchapter-1/section-11-9-102/
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
This Arkansas workers comp exemption guide was last verified against official Arkansas 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.