An Ohio workers comp exemption lets certain business owners legally go without workers’ compensation coverage on themselves — Ohio works the other way round from most states.
Business owners in these groups are left out of coverage automatically and have to opt in if they want it: sole proprietors, partners, LLCs acting as a sole proprietor or partnership, officers of a family farm corporation, an individual incorporated as a corporation (one owner and no employees), and ordained or associate ministers of a religious organization. Other corporate officers count as employees and must be covered.
There is no ownership-percentage limit or officer-count limit beyond the one-owner, no-employee test for an individual incorporated as a corporation. Confirm with Ohio BWC 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 Ohio workers comp exemption, the exact form, where to file it, what it costs, and what an exempt owner gives up. Verified against Ohio sources as of October 2026.
Ohio at a Glance
| Coverage required at | 1 employee(s) |
| Who may elect out | Ohio works the other way round from most states. Business owners in these groups are left out of coverage automatically and have to opt in if they want it: sole proprietors, partners, LLCs acting as a sole proprietor or partnership, officers of a family farm corporation, an individual incorporated as a corporation (one owner and no employees), and ordained or associate ministers of a religious organization. Other corporate officers count as employees and must be covered. There is no ownership-percentage limit or officer-count limit beyond the one-owner, no-employee test for an individual incorporated as a corporation. Confirm with Ohio BWC and a licensed attorney. |
| Exemption form | There is no form to opt out, because exempt owners are left out by default. Owners who want coverage file form U-3S, “Application for or Request to Cancel Elective Coverage.” The same form cancels that coverage. The only true exemption form is U-3E, “Application for Exemption from Ohio Workers’ Coverage and Waiver of Benefits.” It is for the religious exemption under ORC 4123.15. |
| Filed with | Ohio Bureau of Workers’ Compensation (BWC). Ohio is monopolistic, so there are no private insurers to file with. U-3S: https://dam.assets.ohio.gov/image/upload/info.bwc.ohio.gov/forms/U-3S.pdf ; U-3E: https://dam.assets.ohio.gov/image/upload/info.bwc.ohio.gov/forms/U-3E.pdf ; general site: https://info.bwc.ohio.gov |
| Renewal | An owner who never opts in stays uncovered with no renewal needed. Elective coverage starts on the date BWC receives the U-3S. It renews automatically every July and stays in force until the owner cancels in writing. Employers with an approved U-3E religious exemption must still file a payroll report every 6 months and pay the minimum administrative cost. |
In This Ohio Guide:
Who Qualifies for An Ohio Workers Comp Exemption
Ohio works the other way round from most states. Business owners in these groups are left out of coverage automatically and have to opt in if they want it: sole proprietors, partners, LLCs acting as a sole proprietor or partnership, officers of a family farm corporation, an individual incorporated as a corporation (one owner and no employees), and ordained or associate ministers of a religious organization.
Other corporate officers count as employees and must be covered. There is no ownership-percentage limit or officer-count limit beyond the one-owner, no-employee test for an individual incorporated as a corporation. Confirm with Ohio BWC and a licensed attorney.
Under ORC 4123.01(A)(1), BWC treats corporate officers as employees who must be covered. There are two exceptions. (1) Officers of a family farm corporation are excluded unless the corporation chooses to include them. (2) An individual incorporated as a corporation, meaning a sole owner with no employees, is not covered unless they opt in with form U-3S.
Partners and LLC members acting as a sole proprietor or partnership are not covered automatically under ORC 4123.01. They may opt in with form U-3S. If they do, the payroll they report must be at least 50% and at most 150% of the statewide average weekly wage (SAWW).
How to File the Ohio Workers Comp Exemption
The form is There is no form to opt out, because exempt owners are left out by default. Owners who want coverage file form U-3S, “Application for or Request to Cancel Elective Coverage.” The same form cancels that coverage. The only true exemption form is U-3E, “Application for Exemption from Ohio Workers’ Coverage and Waiver of Benefits.” It is for the religious exemption under ORC 4123.15..
It is filed with Ohio Bureau of Workers’ Compensation (BWC). Ohio is monopolistic, so there are no private insurers to file with. U-3S: https://dam.assets.ohio.gov/image/upload/info.bwc.ohio.gov/forms/U-3S.pdf ; U-3E: https://dam.assets.ohio.gov/image/upload/info.bwc.ohio.gov/forms/U-3E.pdf ; general site: https://info.bwc.ohio.gov. Renewal: An owner who never opts in stays uncovered with no renewal needed. Elective coverage starts on the date BWC receives the U-3S. It renews automatically every July and stays in force until the owner cancels in writing.
Employers with an approved U-3E religious exemption must still file a payroll report every 6 months and pay the minimum administrative cost.. 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.
Ohio Workers Comp Exemption Rules at a Glance
The exact Ohio workers comp exemption rules every owner should check before deciding to go without coverage:
| Employee threshold | 1 |
| Who may elect out | Ohio works the other way round from most states. Business owners in these groups are left out of coverage automatically and have to opt in if they want it: sole proprietors, partners, LLCs acting as a sole proprietor or partnership, officers of a family farm corporation, an individual incorporated as a corporation (one owner and no employees), and ordained or associate ministers of a religious organization. Other corporate officers count as employees and must be covered. There is no ownership-percentage limit or officer-count limit beyond the one-owner, no-employee test for an individual incorporated as a corporation. Confirm with Ohio BWC and a licensed attorney. |
| Corporate officers | Under ORC 4123.01(A)(1), BWC treats corporate officers as employees who must be covered. There are two exceptions. (1) Officers of a family farm corporation are excluded unless the corporation chooses to include them. (2) An individual incorporated as a corporation, meaning a sole owner with no employees, is not covered unless they opt in with form U-3S. |
| LLC members and partners | Partners and LLC members acting as a sole proprietor or partnership are not covered automatically under ORC 4123.01. They may opt in with form U-3S. If they do, the payroll they report must be at least 50% and at most 150% of the statewide average weekly wage (SAWW). |
| Form | There is no form to opt out, because exempt owners are left out by default. Owners who want coverage file form U-3S, “Application for or Request to Cancel Elective Coverage.” The same form cancels that coverage. The only true exemption form is U-3E, “Application for Exemption from Ohio Workers’ Coverage and Waiver of Benefits.” It is for the religious exemption under ORC 4123.15. |
| Where to file | Ohio Bureau of Workers’ Compensation (BWC). Ohio is monopolistic, so there are no private insurers to file with. U-3S: https://dam.assets.ohio.gov/image/upload/info.bwc.ohio.gov/forms/U-3S.pdf ; U-3E: https://dam.assets.ohio.gov/image/upload/info.bwc.ohio.gov/forms/U-3E.pdf ; general site: https://info.bwc.ohio.gov |
| Renewal | An owner who never opts in stays uncovered with no renewal needed. Elective coverage starts on the date BWC receives the U-3S. It renews automatically every July and stays in force until the owner cancels in writing. Employers with an approved U-3E religious exemption must still file a payroll report every 6 months and pay the minimum administrative cost. |
What An Ohio Workers Comp Exemption Gives Up
An owner who has not opted in gets no Ohio workers’ comp benefits (medical, wage loss or death) if injured. Workers approved for the religious exemption sign a written waiver of all Chapter 4123 benefits and compensation.
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 Ohio 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 Ohio
Separate from the owner’s election, Ohio 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.
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Proving An Ohio Workers Comp Exemption or Coverage
General contractors and clients in Ohio 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.
Why the Ohio Workers Comp Exemption Matters
The Ohio 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. Ohio is one of the few monopolistic states. Coverage can only be bought from the state insurance fund through BWC, or an employer can self-insure.
The religious exemption under ORC 4123.15 (form U-3E) needs a waiver signed by each worker it covers, plus affidavits from the employer and the worker, and the group must have existed since December 31, 1950. https://codes.ohio.gov/ohio-revised-code/section-4123.15 If the Ohio 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 Ohio 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 Ohio?
Ohio works the other way round from most states. Business owners in these groups are left out of coverage automatically and have to opt in if they want it: sole proprietors, partners, LLCs acting as a sole proprietor or partnership, officers of a family farm corporation, an individual incorporated as a corporation (one owner and no employees), and ordained or associate ministers of a religious organization.
Other corporate officers count as employees and must be covered. There is no ownership-percentage limit or officer-count limit beyond the one-owner, no-employee test for an individual incorporated as a corporation. Confirm with Ohio BWC and a licensed attorney.
What form is the Ohio workers comp exemption?
There is no form to opt out, because exempt owners are left out by default. Owners who want coverage file form U-3S, “Application for or Request to Cancel Elective Coverage.” The same form cancels that coverage. The only true exemption form is U-3E, “Application for Exemption from Ohio Workers’ Coverage and Waiver of Benefits.” It is for the religious exemption under ORC 4123.15..
File it on the state’s own site; filing services charge for the same form.
Can an exempt owner in Ohio 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 Ohio Sources & Resources
- Ohio Ohio Bureau of Workers’ Compensation (BWC); disputed claims go to the Ohio Industrial Commission: https://info.bwc.ohio.gov
- Ohio Workers’ Comp Statute: https://codes.ohio.gov/ohio-revised-code/section-4123.01
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
This Ohio workers comp exemption guide was last verified against official Ohio 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.