A Nebraska workers comp exemption lets certain business owners legally go without workers’ compensation coverage on themselves — Nebraska works the opposite way from most states: owners are excluded automatically and must opt in to be covered. Sole proprietors (“individual employers”), self-employed persons, partners and LLC members are not covered unless they elect coverage in writing (Neb. Rev. Stat. 48-115(10)).
An executive officer of a for-profit corporation who owns 25% or more of the common stock is not an employee unless they elect in. An officer who owns less than 25% is a mandatory employee and cannot opt out (48-115(9)). For nonprofit corporations, an executive officer paid 1000 or less a year is excluded unless they elect in, and one paid more than 1000 is a mandatory employee.
There is no limit on how many officers this applies to. Confirm with the Nebraska Workers’ Compensation Court and a licensed attorney. — while the law still requires coverage for employees once a business has 1 or more. This guide explains who qualifies for the Nebraska workers comp exemption, the exact form, where to file it, what it costs, and what an exempt owner gives up.
Verified against Nebraska sources as of October 2026.
Nebraska at a Glance
| Coverage required at | 1 employee(s) |
| Who may elect out | Nebraska works the opposite way from most states: owners are excluded automatically and must opt in to be covered. Sole proprietors (“individual employers”), self-employed persons, partners and LLC members are not covered unless they elect coverage in writing (Neb. Rev. Stat. 48-115(10)). An executive officer of a for-profit corporation who owns 25% or more of the common stock is not an employee unless they elect in. An officer who owns less than 25% is a mandatory employee and cannot opt out (48-115(9)). For nonprofit corporations, an executive officer paid 1000 or less a year is excluded unless they elect in, and one paid more than 1000 is a mandatory employee. There is no limit on how many officers this applies to. Confirm with the Nebraska Workers’ Compensation Court and a licensed attorney. |
| Exemption form | NONE (Nebraska has no state exemption form. Owners are excluded by default. An owner who wants coverage files a written election with the insurer under 48-115(9) or (10); the statute names no state form number.) |
| Filed with | No exemption is filed with the state. An owner’s written election to be covered is filed with the workers’ comp insurer, plus the corporate secretary for officers and the PEO if one is used. Insurers report policies to the Nebraska Workers’ Compensation Court; employers do not file proof of coverage themselves (https://www.wcc.ne.gov/employers/employer-frequently-asked-questions). |
| Renewal | There is no renewal and no expiration date. An owner’s election to be covered stays in effect for the current and later policies from the same insurer until ended in writing or until that insurer stops covering the business, so it must be filed again with a new insurer. An exempt farm employer that bought coverage voluntarily, or crossed the 10-employee threshold, can return to exempt status only after posting written notice for at least 90 days and then letting the policy lapse. A farm employer that crossed the threshold must also keep coverage for the rest of that calendar year and all of the next one (48-106(5)–(6)). |
| Penalty for being uninsured | Under Neb. Rev. Stat. 48-145.01(1), willfully failing to secure compensation is a Class I misdemeanor: up to 1 year in jail, a fine of up to 1000, or both (28-106). For corporations, LLCs and LLPs, any officer, member, manager, partner or employee with authority to buy coverage is individually guilty and personally liable, jointly and severally, for the compensation owed. Under 48-145.01(2), the employer can be barred from doing business in Nebraska until it complies, and the Workers’ Compensation Court or a district court can impose a civil penalty of up to 1000 per violation, with each day counted as a separate violation. Under 48-145(3), the uninsured employer must also answer in damages to the injured employee, or to their dependents if the injury is fatal. |
In This Nebraska Guide:
Who Qualifies for A Nebraska Workers Comp Exemption
Nebraska works the opposite way from most states: owners are excluded automatically and must opt in to be covered. Sole proprietors (“individual employers”), self-employed persons, partners and LLC members are not covered unless they elect coverage in writing (Neb. Rev. Stat. 48-115(10)). An executive officer of a for-profit corporation who owns 25% or more of the common stock is not an employee unless they elect in.
An officer who owns less than 25% is a mandatory employee and cannot opt out (48-115(9)). For nonprofit corporations, an executive officer paid 1000 or less a year is excluded unless they elect in, and one paid more than 1000 is a mandatory employee. There is no limit on how many officers this applies to. Confirm with the Nebraska Workers’ Compensation Court and a licensed attorney.
Neb. Rev. Stat. 48-115(9). An executive officer of a corporation (elected or appointed under its charter, articles or bylaws) who owns less than 25% of the common stock is an employee under the Act. An officer who owns 25% or more is not an employee unless they elect in. The election must be in writing and filed with the corporation’s secretary and with the workers’ comp insurer.
It takes effect when the insurer receives it, applies to the current and later policies from that insurer, and lasts until the officer ends it in writing filed with the insurer (and the corporate secretary) or until that insurer stops covering the corporation. If coverage is through a PEO master or multiple coordinated policy, the election also goes to the PEO.
Nonprofit officers: excluded if paid 1000 or less a year, covered if paid more than 1000.
Neb. Rev. Stat. 48-115(10). Partners, LLC members, individual employers and self-employed persons who work in the business on a substantially full-time basis are covered only if they elect in. The election is in writing and filed with the workers’ comp insurer (and with the PEO if coverage is through a PEO master policy).
It takes effect when the insurer receives it and lasts until it is ended in writing with the insurer or until that insurer stops covering the business. Case law: a working partner is not an employee entitled to compensation (Rasmussen v. Trico Feed Mills, 148 Neb. 855 (1947)).
How to File the Nebraska Workers Comp Exemption
The form is NONE (Nebraska has no state exemption form. Owners are excluded by default. An owner who wants coverage files a written election with the insurer under 48-115(9) or (10); the statute names no state form number.). It is filed with No exemption is filed with the state.
An owner’s written election to be covered is filed with the workers’ comp insurer, plus the corporate secretary for officers and the PEO if one is used. Insurers report policies to the Nebraska Workers’ Compensation Court; employers do not file proof of coverage themselves (https://www.wcc.ne.gov/employers/employer-frequently-asked-questions).. Renewal: There is no renewal and no expiration date.
An owner’s election to be covered stays in effect for the current and later policies from the same insurer until ended in writing or until that insurer stops covering the business, so it must be filed again with a new insurer.
An exempt farm employer that bought coverage voluntarily, or crossed the 10-employee threshold, can return to exempt status only after posting written notice for at least 90 days and then letting the policy lapse. A farm employer that crossed the threshold must also keep coverage for the rest of that calendar year and all of the next one (48-106(5)–(6))..
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.
Nebraska Workers Comp Exemption Rules at a Glance
The exact Nebraska workers comp exemption rules every owner should check before deciding to go without coverage:
| Employee threshold | 1 |
| Who may elect out | Nebraska works the opposite way from most states: owners are excluded automatically and must opt in to be covered. Sole proprietors (“individual employers”), self-employed persons, partners and LLC members are not covered unless they elect coverage in writing (Neb. Rev. Stat. 48-115(10)). An executive officer of a for-profit corporation who owns 25% or more of the common stock is not an employee unless they elect in. An officer who owns less than 25% is a mandatory employee and cannot opt out (48-115(9)). For nonprofit corporations, an executive officer paid 1000 or less a year is excluded unless they elect in, and one paid more than 1000 is a mandatory employee. There is no limit on how many officers this applies to. Confirm with the Nebraska Workers’ Compensation Court and a licensed attorney. |
| Corporate officers | Neb. Rev. Stat. 48-115(9). An executive officer of a corporation (elected or appointed under its charter, articles or bylaws) who owns less than 25% of the common stock is an employee under the Act. An officer who owns 25% or more is not an employee unless they elect in. The election must be in writing and filed with the corporation’s secretary and with the workers’ comp insurer. It takes effect when the insurer receives it, applies to the current and later policies from that insurer, and lasts until the officer ends it in writing filed with the insurer (and the corporate secretary) or until that insurer stops covering the corporation. If coverage is through a PEO master or multiple coordinated policy, the election also goes to the PEO. Nonprofit officers: excluded if paid 1000 or less a year, covered if paid more than 1000. |
| LLC members and partners | Neb. Rev. Stat. 48-115(10). Partners, LLC members, individual employers and self-employed persons who work in the business on a substantially full-time basis are covered only if they elect in. The election is in writing and filed with the workers’ comp insurer (and with the PEO if coverage is through a PEO master policy). It takes effect when the insurer receives it and lasts until it is ended in writing with the insurer or until that insurer stops covering the business. Case law: a working partner is not an employee entitled to compensation (Rasmussen v. Trico Feed Mills, 148 Neb. 855 (1947)). |
| Form | NONE (Nebraska has no state exemption form. Owners are excluded by default. An owner who wants coverage files a written election with the insurer under 48-115(9) or (10); the statute names no state form number.) |
| Where to file | No exemption is filed with the state. An owner’s written election to be covered is filed with the workers’ comp insurer, plus the corporate secretary for officers and the PEO if one is used. Insurers report policies to the Nebraska Workers’ Compensation Court; employers do not file proof of coverage themselves (https://www.wcc.ne.gov/employers/employer-frequently-asked-questions). |
| Renewal | There is no renewal and no expiration date. An owner’s election to be covered stays in effect for the current and later policies from the same insurer until ended in writing or until that insurer stops covering the business, so it must be filed again with a new insurer. An exempt farm employer that bought coverage voluntarily, or crossed the 10-employee threshold, can return to exempt status only after posting written notice for at least 90 days and then letting the policy lapse. A farm employer that crossed the threshold must also keep coverage for the rest of that calendar year and all of the next one (48-106(5)–(6)). |
| Proof of exemption or coverage | A certificate of insurance from the insurer, or the Nebraska Workers’ Compensation Court’s online Coverage Lookup app (search by employer name and/or FEIN and the coverage date). The state issues no exemption certificate. Under 48-116, an owner or general contractor who in good faith requires a contractor or subcontractor to carry Nebraska workers’ comp insurance avoids being treated as the employer of that subcontractor’s workers. |
What A Nebraska Workers Comp Exemption Gives Up
An owner who has not elected in gets no workers’ comp benefits (medical, wage loss, disability or death benefits) if injured. 48-115(9) and (10) protect these owners in one way: if their health, accident or other insurance policy excludes injuries that workers’ comp would cover, that exclusion is void as to them.
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A farm employer that is exempt under 48-106(2)(d) must give unrelated employees, at hiring (or more than 30 days before any injury), a signed written notice saying they are not covered by the Act. Failing to do so brings the employer under the Act for that employee (48-106(7)). Employees of an exempt employer also keep their health-policy coverage, because 48-106(8) voids work-comp exclusions for them.
Confirm effects on lawsuit rights with 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 Nebraska 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 Nebraska
Separate from the owner’s election, Nebraska 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 Nebraska Workers Comp Exemption or Coverage
A certificate of insurance from the insurer, or the Nebraska Workers’ Compensation Court’s online Coverage Lookup app (search by employer name and/or FEIN and the coverage date). The state issues no exemption certificate. Under 48-116, an owner or general contractor who in good faith requires a contractor or subcontractor to carry Nebraska workers’ comp insurance avoids being treated as the employer of that subcontractor’s workers.
Why the Nebraska Workers Comp Exemption Matters
The Nebraska 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) Nebraska is an opt-in state for owners. Sole proprietors, partners, LLC members and officers owning 25% or more are excluded automatically, so there is no exemption filing.
(2) The farm exemption ends once an employer has 10 or more unrelated full-time employees for 13 weeks in a calendar year. Exempt farm employers must give each unrelated employee a signed written notice of non-coverage, using the exact wording in 48-106(7). (3) Leaving voluntary coverage requires posting notice for at least 90 days (48-106(6)).
(4) Owners of commercial vehicles leased to a self-insured motor carrier based in Nebraska may elect coverage through a written agreement with the carrier (48-115(11)). (5) Coverage-court help line: 800-599-5155 or 402-471-6468. If the Nebraska 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 Nebraska 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 Nebraska?
Nebraska works the opposite way from most states: owners are excluded automatically and must opt in to be covered. Sole proprietors (“individual employers”), self-employed persons, partners and LLC members are not covered unless they elect coverage in writing (Neb. Rev. Stat. 48-115(10)). An executive officer of a for-profit corporation who owns 25% or more of the common stock is not an employee unless they elect in.
An officer who owns less than 25% is a mandatory employee and cannot opt out (48-115(9)). For nonprofit corporations, an executive officer paid 1000 or less a year is excluded unless they elect in, and one paid more than 1000 is a mandatory employee. There is no limit on how many officers this applies to. Confirm with the Nebraska Workers’ Compensation Court and a licensed attorney.
What form is the Nebraska workers comp exemption?
NONE (Nebraska has no state exemption form. Owners are excluded by default. An owner who wants coverage files a written election with the insurer under 48-115(9) or (10); the statute names no state form number.). File it on the state’s own site; filing services charge for the same form.
Can an exempt owner in Nebraska 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 Nebraska Sources & Resources
- Nebraska Nebraska Workers’ Compensation Court: https://www.wcc.ne.gov/
- Nebraska Workers’ Comp Statute: https://nebraskalegislature.gov/laws/statutes.php?statute=48-115
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
This Nebraska workers comp exemption guide was last verified against official Nebraska 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.