A New Jersey workers comp exemption lets certain business owners legally go without workers’ compensation coverage on themselves — Sole proprietors, partners (including limited liability partners) and LLC members are not counted as “employees” under N.J.S.A. 34:15-36, so they are left off the policy by default. There is no form to file to leave them off.
They are included only if the business chooses coverage for them when it buys or renews its policy. No ownership-percentage or officer-count limit was found. Corporate officers cannot exclude themselves. — while the law still requires coverage for employees once a business has 1 or more.
This guide explains who qualifies for the New Jersey workers comp exemption, the exact form, where to file it, what it costs, and what an exempt owner gives up. Verified against New Jersey sources as of October 2026.
New Jersey at a Glance
| Coverage required at | 1 employee(s) |
| Who may elect out | Sole proprietors, partners (including limited liability partners) and LLC members are not counted as “employees” under N.J.S.A. 34:15-36, so they are left off the policy by default. There is no form to file to leave them off. They are included only if the business chooses coverage for them when it buys or renews its policy. No ownership-percentage or officer-count limit was found. Corporate officers cannot exclude themselves. |
| Exemption form | NONE. New Jersey has no state exemption certificate or exclusion form. Sole proprietors, partners and LLC members are excluded by default, and including them is an election made on the insurance policy when it is bought or renewed. Corporate officers have no exclusion option. |
| Filed with | NONE. Nothing is filed with the state. Any election to include owners, partners or members is made with the insurance carrier on the policy, at purchase or renewal. |
| Renewal | NONE. There is no exemption certificate to renew. The decision to include or leave out owners, partners or members is made each time the policy is bought or renewed. |
In This New Jersey Guide:
Who Qualifies for A New Jersey Workers Comp Exemption
Sole proprietors, partners (including limited liability partners) and LLC members are not counted as “employees” under N.J.S.A. 34:15-36, so they are left off the policy by default. There is no form to file to leave them off. They are included only if the business chooses coverage for them when it buys or renews its policy. No ownership-percentage or officer-count limit was found. Corporate officers cannot exclude themselves.
N.J.S.A. 34:15-36 defines “employee” as “all natural persons, including officers of corporations, who perform service for an employer for financial consideration.” Corporate officers are therefore covered automatically, and no statutory way for them to opt out was found. N.J.S.A. 34:15-79 also makes any officer actively engaged in the corporate business (president, vice-president, secretary, treasurer) personally liable if the corporation fails to carry coverage.
Under N.J.S.A. 34:15-36, a business, LLP, LLC or partnership does not have to buy a policy unless it has at least 1 employee who is not a self-employed person, LLP partner, LLC member or partner actively performing services for the business. LLC members and partners are treated as “employees” (for benefits and premiums) only if the business elects that coverage when it buys or renews its policy.
How to File the New Jersey Workers Comp Exemption
The form is NONE. New Jersey has no state exemption certificate or exclusion form. Sole proprietors, partners and LLC members are excluded by default, and including them is an election made on the insurance policy when it is bought or renewed. Corporate officers have no exclusion option.. It is filed with NONE. Nothing is filed with the state.
Any election to include owners, partners or members is made with the insurance carrier on the policy, at purchase or renewal.. Renewal: NONE. There is no exemption certificate to renew. The decision to include or leave out owners, partners or members is made each time the policy is bought or renewed..
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.
New Jersey Workers Comp Exemption Rules at a Glance
The exact New Jersey workers comp exemption rules every owner should check before deciding to go without coverage:
| Employee threshold | 1 |
| Who may elect out | Sole proprietors, partners (including limited liability partners) and LLC members are not counted as “employees” under N.J.S.A. 34:15-36, so they are left off the policy by default. There is no form to file to leave them off. They are included only if the business chooses coverage for them when it buys or renews its policy. No ownership-percentage or officer-count limit was found. Corporate officers cannot exclude themselves. |
| Corporate officers | N.J.S.A. 34:15-36 defines “employee” as “all natural persons, including officers of corporations, who perform service for an employer for financial consideration.” Corporate officers are therefore covered automatically, and no statutory way for them to opt out was found. N.J.S.A. 34:15-79 also makes any officer actively engaged in the corporate business (president, vice-president, secretary, treasurer) personally liable if the corporation fails to carry coverage. |
| LLC members and partners | Under N.J.S.A. 34:15-36, a business, LLP, LLC or partnership does not have to buy a policy unless it has at least 1 employee who is not a self-employed person, LLP partner, LLC member or partner actively performing services for the business. LLC members and partners are treated as “employees” (for benefits and premiums) only if the business elects that coverage when it buys or renews its policy. |
| Form | NONE. New Jersey has no state exemption certificate or exclusion form. Sole proprietors, partners and LLC members are excluded by default, and including them is an election made on the insurance policy when it is bought or renewed. Corporate officers have no exclusion option. |
| Where to file | NONE. Nothing is filed with the state. Any election to include owners, partners or members is made with the insurance carrier on the policy, at purchase or renewal. |
| Renewal | NONE. There is no exemption certificate to renew. The decision to include or leave out owners, partners or members is made each time the policy is bought or renewed. |
| Proof of exemption or coverage | New Jersey issues no state exemption certificate. Proof of coverage is the carrier’s certificate of insurance. Anyone can look up an employer’s coverage for free by business name or FEIN on the NJCRIB “Proof of Coverage” portal: https://www.njcrib.com/PolicyCoverage/Search. A business with no employees has no state document to show its exempt status, so general contractors often ask for a written statement or a minimum policy. That last point is a common practice, not a statute; confirm with the hiring party. |
What A New Jersey Workers Comp Exemption Gives Up
An exempt owner who is hurt on the job in New Jersey has no workers’ comp claim: no medical coverage from the policy, no wage replacement and no disability award. Health insurance may exclude work injuries. Most owners who physically work the job keep themselves covered for that reason.
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 New Jersey 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 New Jersey
Separate from the owner’s election, New Jersey 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 New Jersey Workers Comp Exemption or Coverage
New Jersey issues no state exemption certificate. Proof of coverage is the carrier’s certificate of insurance. Anyone can look up an employer’s coverage for free by business name or FEIN on the NJCRIB “Proof of Coverage” portal: https://www.njcrib.com/PolicyCoverage/Search. A business with no employees has no state document to show its exempt status, so general contractors often ask for a written statement or a minimum policy.
📨 Get Free Workers Comp Guides Alerts
Free · No spam · Unsubscribe anytime
That last point is a common practice, not a statute; confirm with the hiring party.
Why the New Jersey Workers Comp Exemption Matters
The New Jersey 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) Out-of-state employers may need New Jersey coverage if the employment contract is made in New Jersey or the work is done in New Jersey.
(2) Instead of buying insurance, an employer may be approved by the State to self-insure. (3) Corporate officers can never be excluded, and active officers are personally liable when the corporation is uninsured. (4) Workers’ comp rates and coverage records are handled by the NJ Compensation Rating and Inspection Bureau (NJCRIB), phone 973-622-6014.
If the New Jersey 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 New Jersey 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 New Jersey?
Sole proprietors, partners (including limited liability partners) and LLC members are not counted as “employees” under N.J.S.A. 34:15-36, so they are left off the policy by default. There is no form to file to leave them off. They are included only if the business chooses coverage for them when it buys or renews its policy. No ownership-percentage or officer-count limit was found. Corporate officers cannot exclude themselves.
What form is the New Jersey workers comp exemption?
NONE. New Jersey has no state exemption certificate or exclusion form. Sole proprietors, partners and LLC members are excluded by default, and including them is an election made on the insurance policy when it is bought or renewed. Corporate officers have no exclusion option.. File it on the state’s own site; filing services charge for the same form.
Can an exempt owner in New Jersey 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 New Jersey Sources & Resources
- New Jersey New Jersey Department of Labor and Workforce Development, Division of Workers’ Compensation: https://www.nj.gov/labor/workerscompensation/
- New Jersey Workers’ Comp Statute: https://www.nj.gov/labor/workerscompensation/assets/PDFs/Forms/wc_law.pdf
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
This New Jersey workers comp exemption guide was last verified against official New Jersey sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
You May Also Like
More New Jersey Workers’ Comp Guides
- How to File a New Jersey Workers’ Comp Claim
- New Jersey Workers’ Comp Settlements
- New Jersey 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.