An Iowa workers comp exemption lets certain business owners legally go without workers’ compensation coverage on themselves — Proprietors (sole proprietors), LLC members, limited liability partners and partners (including limited partnerships and joint ventures) are generally outside Iowa coverage unless they choose in. Under Iowa Code 85.1A, one who works in the business substantially full-time may elect coverage by buying a policy that names them.
Otherwise they can record a “nonelection” under Iowa Code 87.22. Corporate officers are covered by default. Up to 4 officers per corporation (president, vice president, secretary and treasurer) may reject coverage under Iowa Code 87.22.
Officers of a family farm corporation cannot use this rejection. — while the law still requires coverage for employees once a business has 1 (Iowa Code 87.1 and 87.14A require every employer covered by chapters 85, 85A, 85B and 86 to carry workers’ comp insurance or be approved to self-insure. Iowa sets no minimum employee count. Specific classes of workers are exempt instead; see exempt_workers.) or more.
This guide explains who qualifies for the Iowa workers comp exemption, the exact form, where to file it, what it costs, and what an exempt owner gives up. Verified against Iowa sources as of October 2026.
Iowa at a Glance
| Coverage required at | 1 (Iowa Code 87.1 and 87.14A require every employer covered by chapters 85, 85A, 85B and 86 to carry workers’ comp insurance or be approved to self-insure. Iowa sets no minimum employee count. Specific classes of workers are exempt instead; see exempt_workers.) employee(s) |
| Who may elect out | Proprietors (sole proprietors), LLC members, limited liability partners and partners (including limited partnerships and joint ventures) are generally outside Iowa coverage unless they choose in. Under Iowa Code 85.1A, one who works in the business substantially full-time may elect coverage by buying a policy that names them. Otherwise they can record a “nonelection” under Iowa Code 87.22. Corporate officers are covered by default. Up to 4 officers per corporation (president, vice president, secretary and treasurer) may reject coverage under Iowa Code 87.22. Officers of a family farm corporation cannot use this rejection. |
| Exemption form | Two different forms. (1) Nonelection of Workers’ Compensation or Employers’ Liability Coverage, Form No. 14-0175, for proprietors, LLC members, limited liability partners and partners (Iowa Code 87.22; 876 IAC 3.1). (2) Rejection of Workers’ Compensation or Employers’ Liability Coverage, the corporate officer exclusion, Form No. 14-0061, for corporate officers (Iowa Code 87.22; 876 IAC 3.1). If a policy is issued, the signed form is attached to the policy rather than filed with the state. |
| Filed with | If a workers’ comp or employers’ liability policy exists, the signed form is attached to the policy through the insurer, and the Division does not require it to be filed. If no policy exists, the form is signed in front of 2 disinterested witnesses and filed with the Iowa Division of Workers’ Compensation (Department of Inspections, Appeals, and Licensing) using its online form. Nonelection: https://dial.iowa.gov/hearings/workers-comp/compliance/reporting/nonelection-workers-comp-or-liability-coverage. Officer rejection: https://dial.iowa.gov/hearings/workers-comp/compliance/reporting/rejection-coverage |
| Renewal | No set expiration and no renewal requirement is stated. Under Iowa Code 87.22 the nonelection or rejection stays in effect until the person signs a written notice of termination, witnessed by 2 disinterested non-affiliated people and filed by the employer with the commissioner. The Division provides separate Termination of Nonelection and Termination of Rejection filings. |
| Penalty for being uninsured | Iowa Code 87.14A: willfully and knowingly operating without required coverage is a class “D” felony. Under Iowa Code 902.9 that carries up to 5 years and a fine of 1025 to 10245. Iowa Code 87.2: an uninsured employer must post a notice to employees saying it has failed to insure, and failing to post it is a simple misdemeanor. Iowa Code 87.19: the commissioner notifies the employer by certified mail, and if it does not comply within 15 days, the Attorney General seeks an injunction. Iowa Code 87.21: an injured employee may sue for damages or claim compensation. In a lawsuit the employer’s negligence is presumed and the employer cannot use the contributory negligence, assumption of risk or fellow-servant defenses. |
In This Iowa Guide:
Who Qualifies for An Iowa Workers Comp Exemption
Proprietors (sole proprietors), LLC members, limited liability partners and partners (including limited partnerships and joint ventures) are generally outside Iowa coverage unless they choose in. Under Iowa Code 85.1A, one who works in the business substantially full-time may elect coverage by buying a policy that names them. Otherwise they can record a “nonelection” under Iowa Code 87.22. Corporate officers are covered by default.
Up to 4 officers per corporation (president, vice president, secretary and treasurer) may reject coverage under Iowa Code 87.22. Officers of a family farm corporation cannot use this rejection.
Iowa Code 87.22 lets the president, vice president, secretary and treasurer of a corporation reject coverage under chapters 85, 85A and 85B. A family farm corporation is excluded from this rule, and no more than 4 officers per corporation may reject. The officer must reject knowingly and voluntarily by signing a written rejection and attaching it to the workers’ comp or employers’ liability policy.
If no policy is issued, the officer signs a written rejection witnessed by 2 disinterested people with no formal or informal tie to the employer, and the employer files it with the workers’ compensation commissioner. The form must include the statement “I understand that by signing this statement I reject the coverage of chapters 85, 85A, and 85B of the Code of Iowa relating to workers’ compensation.”
Iowa Code 85.1A: a proprietor, LLC member, limited liability partner or partner working in the business substantially full-time may elect coverage by buying insurance that specifically includes them. The election makes the employer liable for workers’ comp for that person while the policy is in force, and that person then accepts workers’ comp as their only remedy. Iowa Code 87.22: such a person may file a written nonelection instead.
It is either attached to the policy or, if no policy is issued, witnessed by 2 disinterested non-affiliated people and filed by the employer with the commissioner.
How to File the Iowa Workers Comp Exemption
The form is Two different forms. (1) Nonelection of Workers’ Compensation or Employers’ Liability Coverage, Form No. 14-0175, for proprietors, LLC members, limited liability partners and partners (Iowa Code 87.22; 876 IAC 3.1). (2) Rejection of Workers’ Compensation or Employers’ Liability Coverage, the corporate officer exclusion, Form No. 14-0061, for corporate officers (Iowa Code 87.22; 876 IAC 3.1).
If a policy is issued, the signed form is attached to the policy rather than filed with the state.. It is filed with If a workers’ comp or employers’ liability policy exists, the signed form is attached to the policy through the insurer, and the Division does not require it to be filed.
If no policy exists, the form is signed in front of 2 disinterested witnesses and filed with the Iowa Division of Workers’ Compensation (Department of Inspections, Appeals, and Licensing) using its online form. Nonelection: https://dial.iowa.gov/hearings/workers-comp/compliance/reporting/nonelection-workers-comp-or-liability-coverage. Officer rejection: https://dial.iowa.gov/hearings/workers-comp/compliance/reporting/rejection-coverage. Renewal: No set expiration and no renewal requirement is stated.
Under Iowa Code 87.22 the nonelection or rejection stays in effect until the person signs a written notice of termination, witnessed by 2 disinterested non-affiliated people and filed by the employer with the commissioner. The Division provides separate Termination of Nonelection and Termination of Rejection filings..
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.
Iowa Workers Comp Exemption Rules at a Glance
The exact Iowa workers comp exemption rules every owner should check before deciding to go without coverage:
| Employee threshold | 1 (Iowa Code 87.1 and 87.14A require every employer covered by chapters 85, 85A, 85B and 86 to carry workers’ comp insurance or be approved to self-insure. Iowa sets no minimum employee count. Specific classes of workers are exempt instead; see exempt_workers.) |
| Who may elect out | Proprietors (sole proprietors), LLC members, limited liability partners and partners (including limited partnerships and joint ventures) are generally outside Iowa coverage unless they choose in. Under Iowa Code 85.1A, one who works in the business substantially full-time may elect coverage by buying a policy that names them. Otherwise they can record a “nonelection” under Iowa Code 87.22. Corporate officers are covered by default. Up to 4 officers per corporation (president, vice president, secretary and treasurer) may reject coverage under Iowa Code 87.22. Officers of a family farm corporation cannot use this rejection. |
| Corporate officers | Iowa Code 87.22 lets the president, vice president, secretary and treasurer of a corporation reject coverage under chapters 85, 85A and 85B. A family farm corporation is excluded from this rule, and no more than 4 officers per corporation may reject. The officer must reject knowingly and voluntarily by signing a written rejection and attaching it to the workers’ comp or employers’ liability policy. If no policy is issued, the officer signs a written rejection witnessed by 2 disinterested people with no formal or informal tie to the employer, and the employer files it with the workers’ compensation commissioner. The form must include the statement “I understand that by signing this statement I reject the coverage of chapters 85, 85A, and 85B of the Code of Iowa relating to workers’ compensation.” |
| LLC members and partners | Iowa Code 85.1A: a proprietor, LLC member, limited liability partner or partner working in the business substantially full-time may elect coverage by buying insurance that specifically includes them. The election makes the employer liable for workers’ comp for that person while the policy is in force, and that person then accepts workers’ comp as their only remedy. Iowa Code 87.22: such a person may file a written nonelection instead. It is either attached to the policy or, if no policy is issued, witnessed by 2 disinterested non-affiliated people and filed by the employer with the commissioner. |
| Workers exempt by law | Under Iowa Code 85.1: (1) Household or domestic employees who earned less than 1500 from the employer in the 12 consecutive months before the injury. (2) Casual employees who were not hired for the employer’s trade or business and earned less than 1500 in the 12 consecutive months before the injury. (3) Agricultural employees if the employer’s nonexempt cash payroll was less than 2500 in the preceding calendar year. (4) Relatives of a farm employer or the employer’s spouse, and relatives of a partner or partner’s spouse, working in farming. (5) Workers covered by federal workers’ comp law. Independent contractors are not “employees” under Iowa Code 85.61. A licensed real estate salesperson counts as an independent contractor only if both apply: at least 75% of their pay comes from one company and is tied to sales rather than hours, and a written contract says they are not an employee for state tax purposes (Iowa Code 85.61). Trucking owner-operators who are independent contractors are excluded (Iowa Code 87.23). Marketplace-platform contractors are excluded if they meet the 4 conditions in Iowa Code 93.2. |
| Form | Two different forms. (1) Nonelection of Workers’ Compensation or Employers’ Liability Coverage, Form No. 14-0175, for proprietors, LLC members, limited liability partners and partners (Iowa Code 87.22; 876 IAC 3.1). (2) Rejection of Workers’ Compensation or Employers’ Liability Coverage, the corporate officer exclusion, Form No. 14-0061, for corporate officers (Iowa Code 87.22; 876 IAC 3.1). If a policy is issued, the signed form is attached to the policy rather than filed with the state. |
| Where to file | If a workers’ comp or employers’ liability policy exists, the signed form is attached to the policy through the insurer, and the Division does not require it to be filed. If no policy exists, the form is signed in front of 2 disinterested witnesses and filed with the Iowa Division of Workers’ Compensation (Department of Inspections, Appeals, and Licensing) using its online form. Nonelection: https://dial.iowa.gov/hearings/workers-comp/compliance/reporting/nonelection-workers-comp-or-liability-coverage. Officer rejection: https://dial.iowa.gov/hearings/workers-comp/compliance/reporting/rejection-coverage |
| Renewal | No set expiration and no renewal requirement is stated. Under Iowa Code 87.22 the nonelection or rejection stays in effect until the person signs a written notice of termination, witnessed by 2 disinterested non-affiliated people and filed by the employer with the commissioner. The Division provides separate Termination of Nonelection and Termination of Rejection filings. |
| Proof of exemption or coverage | Covered employers give a certificate of workers’ compensation insurance from their insurer. The Division uses NCCI to verify coverage, and the public can check through NCCI’s online coverage database (https://dial.iowa.gov/hearings/workers-comp/compliance/reporting/verification). Exempt owners can point to the Division’s public lists of nonelections filed on or after November 1, 2019 and of officer rejections, both public records under Iowa Code 87.22. A copy of the witnessed, filed form also serves as proof. Iowa Code 87.23 requires motor carriers to get a workers’ comp certificate from owner-operators covering the owner-operator’s employees. |
What An Iowa Workers Comp Exemption Gives Up
A proprietor, partner or LLC member who does not elect coverage, or who files a nonelection, generally gets no Iowa workers’ comp benefits for a work injury. That means no wage-loss, medical or disability benefits under chapters 85, 85A and 85B. A corporate officer who rejects coverage also loses those benefits.
However, Iowa Code 87.22 states that the rejection is not a waiver of any rights or remedies the officer has in a civil action for personal injuries from the employment. A person who does elect coverage under 85.1A accepts workers’ comp as the exclusive remedy. Confirm the effect on your specific situation with the Division 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 an Iowa 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 Iowa
Under Iowa Code 85.1: (1) Household or domestic employees who earned less than 1500 from the employer in the 12 consecutive months before the injury. (2) Casual employees who were not hired for the employer’s trade or business and earned less than 1500 in the 12 consecutive months before the injury. (3) Agricultural employees if the employer’s nonexempt cash payroll was less than 2500 in the preceding calendar year.
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(4) Relatives of a farm employer or the employer’s spouse, and relatives of a partner or partner’s spouse, working in farming. (5) Workers covered by federal workers’ comp law. Independent contractors are not “employees” under Iowa Code 85.61.
A licensed real estate salesperson counts as an independent contractor only if both apply: at least 75% of their pay comes from one company and is tied to sales rather than hours, and a written contract says they are not an employee for state tax purposes (Iowa Code 85.61). Trucking owner-operators who are independent contractors are excluded (Iowa Code 87.23).
Marketplace-platform contractors are excluded if they meet the 4 conditions in Iowa Code 93.2.
Proving An Iowa Workers Comp Exemption or Coverage
Covered employers give a certificate of workers’ compensation insurance from their insurer. The Division uses NCCI to verify coverage, and the public can check through NCCI’s online coverage database (https://dial.iowa.gov/hearings/workers-comp/compliance/reporting/verification). Exempt owners can point to the Division’s public lists of nonelections filed on or after November 1, 2019 and of officer rejections, both public records under Iowa Code 87.22. A copy of the witnessed, filed form also serves as proof.
Iowa Code 87.23 requires motor carriers to get a workers’ comp certificate from owner-operators covering the owner-operator’s employees.
Why the Iowa Workers Comp Exemption Matters
The Iowa 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) Iowa reverses the usual default: proprietors, partners and LLC members are outside coverage unless they buy a policy naming them (Iowa Code 85.1A), while corporate officers are inside unless they reject (Iowa Code 87.22).
(2) Family farm corporation officers cannot use the 87.22 officer rejection. (3) Witnesses must be 2 disinterested people with no formal or informal tie to the employer. (4) Filed nonelections and rejections are public records posted by the Division. (5) Marketplace-platform contractors (Iowa Code 93.2) and owner-operator truckers (Iowa Code 87.23) can be treated as non-employees when the statutory conditions are met.
Rules can change, so confirm current requirements with the Iowa Division of Workers’ Compensation and a licensed attorney. This is general reference, not legal advice. If the Iowa 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 Iowa 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 Iowa?
Proprietors (sole proprietors), LLC members, limited liability partners and partners (including limited partnerships and joint ventures) are generally outside Iowa coverage unless they choose in. Under Iowa Code 85.1A, one who works in the business substantially full-time may elect coverage by buying a policy that names them. Otherwise they can record a “nonelection” under Iowa Code 87.22. Corporate officers are covered by default.
Up to 4 officers per corporation (president, vice president, secretary and treasurer) may reject coverage under Iowa Code 87.22. Officers of a family farm corporation cannot use this rejection.
What form is the Iowa workers comp exemption?
Two different forms. (1) Nonelection of Workers’ Compensation or Employers’ Liability Coverage, Form No. 14-0175, for proprietors, LLC members, limited liability partners and partners (Iowa Code 87.22; 876 IAC 3.1). (2) Rejection of Workers’ Compensation or Employers’ Liability Coverage, the corporate officer exclusion, Form No. 14-0061, for corporate officers (Iowa Code 87.22; 876 IAC 3.1).
If a policy is issued, the signed form is attached to the policy rather than filed with the state.. File it on the state’s own site; filing services charge for the same form.
Can an exempt owner in Iowa 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 Iowa Sources & Resources
- Iowa Iowa Division of Workers’ Compensation (workers’ compensation commissioner), Iowa Department of Inspections, Appeals, and Licensing (DIAL): https://dial.iowa.gov/hearings/workers-comp/compliance
- Iowa Workers’ Comp Statute: https://www.legis.iowa.gov/docs/code/87.22.pdf
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
This Iowa workers comp exemption guide was last verified against official Iowa 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.