A Mississippi workers comp exemption lets certain business owners legally go without workers’ compensation coverage on themselves — Under Miss. Code Ann. § 71-3-5, an employer may elect to be exempt from the Workers’ Compensation Law for three kinds of owners: (1) its sole proprietor, (2) a partner in a partnership, and (3) an employee who owns 15% or more of the corporation’s stock.
Two things are required: written action by the employer’s own governing authority, and the owner’s own voluntary written agreement. The statute sets no limit on how many officers may be excluded. The 15% stock-ownership minimum applies only to corporate employees and officers.
Owners who are exempted this way are not counted toward the 5-employee threshold. — while the law still requires coverage for employees once a business has 5 or more. This guide explains who qualifies for the Mississippi workers comp exemption, the exact form, where to file it, what it costs, and what an exempt owner gives up. Verified against Mississippi sources as of October 2026.
Mississippi at a Glance
| Coverage required at | 5 employee(s) |
| Who may elect out | Under Miss. Code Ann. § 71-3-5, an employer may elect to be exempt from the Workers’ Compensation Law for three kinds of owners: (1) its sole proprietor, (2) a partner in a partnership, and (3) an employee who owns 15% or more of the corporation’s stock. Two things are required: written action by the employer’s own governing authority, and the owner’s own voluntary written agreement. The statute sets no limit on how many officers may be excluded. The 15% stock-ownership minimum applies only to corporate employees and officers. Owners who are exempted this way are not counted toward the 5-employee threshold. |
| Exemption form | NONE. The Commission publishes no standard exemption or exclusion form number. The election is made by written action of the employer’s governing authority plus the owner’s written agreement, and in practice it is handled with the insurer on the policy. Ask the MWCC (601-987-4200) whether it has a current form. |
| Penalty for being uninsured | Under § 71-3-83, an employer required to secure compensation that fails to do so is guilty of a misdemeanor, with a fine of not more than 1000 on conviction. The Commission may also assess a civil penalty of up to 10000, decided case by case. Under § 71-3-9, if the employer has not secured payment of compensation, the injured employee may sue the employer in court instead of being limited to workers’ comp. In that lawsuit, the uninsured employer generally loses the common-law defenses of contributory negligence, fellow-servant rule and assumption of risk. |
In This Mississippi Guide:
Who Qualifies for A Mississippi Workers Comp Exemption
Under Miss. Code Ann. § 71-3-5, an employer may elect to be exempt from the Workers’ Compensation Law for three kinds of owners: (1) its sole proprietor, (2) a partner in a partnership, and (3) an employee who owns 15% or more of the corporation’s stock. Two things are required: written action by the employer’s own governing authority, and the owner’s own voluntary written agreement.
The statute sets no limit on how many officers may be excluded. The 15% stock-ownership minimum applies only to corporate employees and officers. Owners who are exempted this way are not counted toward the 5-employee threshold.
Miss. Code Ann. § 71-3-5 lets the employer, by written action of its own governing authority, exempt “its employee who is the owner of fifteen percent (15%) or more of its stock in a corporation,” as long as that employee also voluntarily agrees in writing. Officers who own less than 15% cannot be excluded. An excluded 15%-plus owner is left out of the employee count for the 5-worker coverage threshold.
How to File the Mississippi Workers Comp Exemption
The form is NONE. The Commission publishes no standard exemption or exclusion form number. The election is made by written action of the employer’s governing authority plus the owner’s written agreement, and in practice it is handled with the insurer on the policy. Ask the MWCC (601-987-4200) whether it has a current form..
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.
Mississippi Workers Comp Exemption Rules at a Glance
The exact Mississippi workers comp exemption rules every owner should check before deciding to go without coverage:
| Employee threshold | 5 |
| Who may elect out | Under Miss. Code Ann. § 71-3-5, an employer may elect to be exempt from the Workers’ Compensation Law for three kinds of owners: (1) its sole proprietor, (2) a partner in a partnership, and (3) an employee who owns 15% or more of the corporation’s stock. Two things are required: written action by the employer’s own governing authority, and the owner’s own voluntary written agreement. The statute sets no limit on how many officers may be excluded. The 15% stock-ownership minimum applies only to corporate employees and officers. Owners who are exempted this way are not counted toward the 5-employee threshold. |
| Corporate officers | Miss. Code Ann. § 71-3-5 lets the employer, by written action of its own governing authority, exempt “its employee who is the owner of fifteen percent (15%) or more of its stock in a corporation,” as long as that employee also voluntarily agrees in writing. Officers who own less than 15% cannot be excluded. An excluded 15%-plus owner is left out of the employee count for the 5-worker coverage threshold. |
| Form | NONE. The Commission publishes no standard exemption or exclusion form number. The election is made by written action of the employer’s governing authority plus the owner’s written agreement, and in practice it is handled with the insurer on the policy. Ask the MWCC (601-987-4200) whether it has a current form. |
What A Mississippi Workers Comp Exemption Gives Up
An exempted owner has no right to workers’ comp benefits (medical, wage-loss, disability or death benefits) through the business’s coverage if injured on the job. Workers’ comp is the exclusive remedy for covered employees under § 71-3-9. Because an exempted owner is outside the system, they would generally have to rely on personal health, disability or life insurance. Confirm with your state board 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 Mississippi 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 Mississippi
Separate from the owner’s election, Mississippi 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 A Mississippi Workers Comp Exemption or Coverage
General contractors and clients in Mississippi ask for proof before work starts: a certificate of insurance for covered employers, or the filed exemption certificate for exempt owners. Many states also run a public coverage-verification lookup on the agency site.
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Why the Mississippi Workers Comp Exemption Matters
The Mississippi 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) Mississippi’s threshold is 5 employees “regularly in the same business or in or about the same establishment.” (2) Excluded sole proprietors, partners and 15%-plus stockholders do not count toward that 5-worker threshold.
(3) The exclusion needs both a formal written act by the employer’s governing authority and the owner’s own voluntary written agreement; one alone is not enough. (4) Employers with fewer than 5 employees generally may still buy coverage voluntarily. Confirm details with the MWCC and a licensed attorney.
If the Mississippi 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 Mississippi 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 Mississippi?
Under Miss. Code Ann. § 71-3-5, an employer may elect to be exempt from the Workers’ Compensation Law for three kinds of owners: (1) its sole proprietor, (2) a partner in a partnership, and (3) an employee who owns 15% or more of the corporation’s stock. Two things are required: written action by the employer’s own governing authority, and the owner’s own voluntary written agreement.
The statute sets no limit on how many officers may be excluded. The 15% stock-ownership minimum applies only to corporate employees and officers. Owners who are exempted this way are not counted toward the 5-employee threshold.
What form is the Mississippi workers comp exemption?
NONE. The Commission publishes no standard exemption or exclusion form number. The election is made by written action of the employer’s governing authority plus the owner’s written agreement, and in practice it is handled with the insurer on the policy. Ask the MWCC (601-987-4200) whether it has a current form.. File it on the state’s own site; filing services charge for the same form.
Can an exempt owner in Mississippi 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 Mississippi Sources & Resources
- Mississippi Mississippi Workers’ Compensation Commission (MWCC): https://www.mwcc.ms.gov
- Mississippi Workers’ Comp Statute: https://law.justia.com/codes/mississippi/title-71/chapter-3/general-provisions/section-71-3-5/
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
This Mississippi workers comp exemption guide was last verified against official Mississippi 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.