A Pennsylvania workers comp exemption lets certain business owners legally go without workers’ compensation coverage on themselves — Sole proprietors and partners are not employees under the Pennsylvania Act, so they are automatically outside coverage and file no exemption form. LLC members are generally not covered either, but they may choose to buy coverage voluntarily.
Corporate executive officers are covered by default and may elect to be excluded only if they meet one of these rules: (a) in a Subchapter S corporation, any ownership interest; (b) in a Subchapter C corporation, at least a 5 percent interest; (c) in a nonprofit corporation, the officer serves voluntarily and without pay. The search results showed no limit on how many officers may be excluded.
The LIBC-513 declarations filed together must account for 100 percent of the ownership. — while the law still requires coverage for employees once a business has 1 or more. This guide explains who qualifies for the Pennsylvania workers comp exemption, the exact form, where to file it, what it costs, and what an exempt owner gives up. Verified against Pennsylvania sources as of October 2026.
Pennsylvania at a Glance
| Coverage required at | 1 employee(s) |
| Who may elect out | Sole proprietors and partners are not employees under the Pennsylvania Act, so they are automatically outside coverage and file no exemption form. LLC members are generally not covered either, but they may choose to buy coverage voluntarily. Corporate executive officers are covered by default and may elect to be excluded only if they meet one of these rules: (a) in a Subchapter S corporation, any ownership interest; (b) in a Subchapter C corporation, at least a 5 percent interest; (c) in a nonprofit corporation, the officer serves voluntarily and without pay. The search results showed no limit on how many officers may be excluded. The LIBC-513 declarations filed together must account for 100 percent of the ownership. |
| Exemption form | Form LIBC-509, “Application for Executive Officer Exception,” filed together with one Form LIBC-513, “Executive Officer’s Declaration,” for each officer. The religious exception uses Form LIBC-14A, “Section 304.2 Application for Religious Exception of Specified Employes from the Provisions of the Pennsylvania Workers’ Compensation Act,” with one of these per employee: Form LIBC-14B (affidavit and waiver), a previously issued LIBC-14C certification, or an approved IRS Form 4029. |
| Filed with | If the employer has a policy covering other employees, LIBC-509/513 go to that insurance carrier. If the employer has no other employees, they go to the Compliance Section, Bureau of Workers’ Compensation, Pennsylvania Department of Labor and Industry. LIBC-14A is filed with the Bureau’s Compliance Section. Forms and information: https://www.pa.gov/agencies/dli/resources/for-employers-and-educators/workers–compensation-for-employers/workers–compensation-compliance |
| Penalty for being uninsured | Section 305 of the Act (77 P.S. § 501) makes it a crime not to carry coverage. Unintentional failure is a third-degree misdemeanor with a fine up to 2500 and up to 1 year in prison. Intentional failure is a third-degree felony with a fine up to 15000 and up to 7 years in prison. Each day without coverage is a separate offense. Separately, Act 72 penalties for misclassifying construction workers run up to 1000 for a first violation and up to 2500 for each later violation, per misclassified worker. |
In This Pennsylvania Guide:
Who Qualifies for A Pennsylvania Workers Comp Exemption
Sole proprietors and partners are not employees under the Pennsylvania Act, so they are automatically outside coverage and file no exemption form. LLC members are generally not covered either, but they may choose to buy coverage voluntarily.
Corporate executive officers are covered by default and may elect to be excluded only if they meet one of these rules: (a) in a Subchapter S corporation, any ownership interest; (b) in a Subchapter C corporation, at least a 5 percent interest; (c) in a nonprofit corporation, the officer serves voluntarily and without pay. The search results showed no limit on how many officers may be excluded.
The LIBC-513 declarations filed together must account for 100 percent of the ownership.
Pennsylvania Workers’ Compensation Act Section 104 (77 P.S. § 22) lets executive officers elect not to be employees under the Act. A for-profit S-corporation may exclude officers who hold any ownership interest (as defined in the Tax Reform Code of 1971). A C-corporation may exclude officers who hold at least a 5 percent interest. A nonprofit may exclude officers who serve voluntarily and without pay.
The exclusion starts only after Form LIBC-509 and each officer’s Form LIBC-513 are filed.
Partners and sole proprietors are not employees under the Act and are automatically outside coverage; they file no form. LLC members are generally not covered under Section 104 as amended by Act 20 of 2011 (effective August 29, 2011), and that law also lets LLC members buy coverage voluntarily. Confirm the exact section with the Bureau of Workers’ Compensation.
How to File the Pennsylvania Workers Comp Exemption
The form is Form LIBC-509, “Application for Executive Officer Exception,” filed together with one Form LIBC-513, “Executive Officer’s Declaration,” for each officer. The religious exception uses Form LIBC-14A, “Section 304.2 Application for Religious Exception of Specified Employes from the Provisions of the Pennsylvania Workers’ Compensation Act,” with one of these per employee: Form LIBC-14B (affidavit and waiver), a previously issued LIBC-14C certification, or an approved IRS Form 4029..
It is filed with If the employer has a policy covering other employees, LIBC-509/513 go to that insurance carrier. If the employer has no other employees, they go to the Compliance Section, Bureau of Workers’ Compensation, Pennsylvania Department of Labor and Industry. LIBC-14A is filed with the Bureau’s Compliance Section. Forms and information: https://www.pa.gov/agencies/dli/resources/for-employers-and-educators/workers–compensation-for-employers/workers–compensation-compliance.
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.
Pennsylvania Workers Comp Exemption Rules at a Glance
The exact Pennsylvania workers comp exemption rules every owner should check before deciding to go without coverage:
| Employee threshold | 1 |
| Who may elect out | Sole proprietors and partners are not employees under the Pennsylvania Act, so they are automatically outside coverage and file no exemption form. LLC members are generally not covered either, but they may choose to buy coverage voluntarily. Corporate executive officers are covered by default and may elect to be excluded only if they meet one of these rules: (a) in a Subchapter S corporation, any ownership interest; (b) in a Subchapter C corporation, at least a 5 percent interest; (c) in a nonprofit corporation, the officer serves voluntarily and without pay. The search results showed no limit on how many officers may be excluded. The LIBC-513 declarations filed together must account for 100 percent of the ownership. |
| Corporate officers | Pennsylvania Workers’ Compensation Act Section 104 (77 P.S. § 22) lets executive officers elect not to be employees under the Act. A for-profit S-corporation may exclude officers who hold any ownership interest (as defined in the Tax Reform Code of 1971). A C-corporation may exclude officers who hold at least a 5 percent interest. A nonprofit may exclude officers who serve voluntarily and without pay. The exclusion starts only after Form LIBC-509 and each officer’s Form LIBC-513 are filed. |
| LLC members and partners | Partners and sole proprietors are not employees under the Act and are automatically outside coverage; they file no form. LLC members are generally not covered under Section 104 as amended by Act 20 of 2011 (effective August 29, 2011), and that law also lets LLC members buy coverage voluntarily. Confirm the exact section with the Bureau of Workers’ Compensation. |
| Workers exempt by law | Domestic service workers are excluded under Section 321 unless the employer applies to the Department of Labor and Industry and is approved to come under the Act. Agricultural laborers are excluded unless the employer pays one agricultural worker 1200 or more in wages in a calendar year, or employs one for 30 or more days in a calendar year. A farmer’s spouse and minor children (under 18) are not covered unless the farmer elects coverage. Casual workers are not employees under Section 104 if the work is casual and not in the regular course of the employer’s business. Construction independent contractors are excluded only if they meet the Construction Workplace Misclassification Act (Act 72 of 2010): a written contract, freedom from control, and an independently established business. Otherwise the worker is presumed to be an employee. Workers of an approved religious exception (Section 304.2, for members of sects such as the Amish who are opposed to insurance) are also excluded. |
| Form | Form LIBC-509, “Application for Executive Officer Exception,” filed together with one Form LIBC-513, “Executive Officer’s Declaration,” for each officer. The religious exception uses Form LIBC-14A, “Section 304.2 Application for Religious Exception of Specified Employes from the Provisions of the Pennsylvania Workers’ Compensation Act,” with one of these per employee: Form LIBC-14B (affidavit and waiver), a previously issued LIBC-14C certification, or an approved IRS Form 4029. |
| Where to file | If the employer has a policy covering other employees, LIBC-509/513 go to that insurance carrier. If the employer has no other employees, they go to the Compliance Section, Bureau of Workers’ Compensation, Pennsylvania Department of Labor and Industry. LIBC-14A is filed with the Bureau’s Compliance Section. Forms and information: https://www.pa.gov/agencies/dli/resources/for-employers-and-educators/workers–compensation-for-employers/workers–compensation-compliance |
| Proof of exemption or coverage | A certificate of insurance from the employer’s carrier. Anyone can look up coverage with the Bureau’s Workers’ Compensation Insurance Search Form (https://www.pa.gov/agencies/dli/resources/for-claimants-workers/workers–compensation-insurance-search-form-), which draws on Pennsylvania Compensation Rating Bureau data. A carrier-approved LIBC-509/513 or a Bureau-issued LIBC-14C religious certification shows the exclusion. Many Pennsylvania municipalities also require their own workers’ comp exemption affidavit before issuing building permits. |
What A Pennsylvania Workers Comp Exemption Gives Up
An excluded executive officer is not an employee under the Act, so they get no wage-loss or medical benefits if hurt on the job. Their injuries would generally have to be covered by personal health or disability insurance. Sole proprietors and partners have no workers’ comp coverage unless they buy it voluntarily. Religious-exception employees sign an affidavit waiving their workers’ compensation benefits.
Confirm with the Bureau and a licensed attorney how an exclusion affects the right to sue.
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 Pennsylvania 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 Pennsylvania
Domestic service workers are excluded under Section 321 unless the employer applies to the Department of Labor and Industry and is approved to come under the Act. Agricultural laborers are excluded unless the employer pays one agricultural worker 1200 or more in wages in a calendar year, or employs one for 30 or more days in a calendar year.
A farmer’s spouse and minor children (under 18) are not covered unless the farmer elects coverage. Casual workers are not employees under Section 104 if the work is casual and not in the regular course of the employer’s business. Construction independent contractors are excluded only if they meet the Construction Workplace Misclassification Act (Act 72 of 2010): a written contract, freedom from control, and an independently established business.
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Otherwise the worker is presumed to be an employee. Workers of an approved religious exception (Section 304.2, for members of sects such as the Amish who are opposed to insurance) are also excluded.
Proving A Pennsylvania Workers Comp Exemption or Coverage
A certificate of insurance from the employer’s carrier. Anyone can look up coverage with the Bureau’s Workers’ Compensation Insurance Search Form (https://www.pa.gov/agencies/dli/resources/for-claimants-workers/workers–compensation-insurance-search-form-), which draws on Pennsylvania Compensation Rating Bureau data. A carrier-approved LIBC-509/513 or a Bureau-issued LIBC-14C religious certification shows the exclusion. Many Pennsylvania municipalities also require their own workers’ comp exemption affidavit before issuing building permits.
Why the Pennsylvania Workers Comp Exemption Matters
The Pennsylvania 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. Pennsylvania has a religious exception (Section 304.2, Form LIBC-14A) for employees who belong to sects opposed to insurance, such as the Amish and some Mennonites.
Each employee must waive benefits with a notarized LIBC-14B or an approved IRS Form 4029. Act 72 (the Construction Workplace Misclassification Act, effective February 10, 2011) presumes construction workers are employees unless all three independent-contractor tests are met. Employers who come under the Act by election (for example, for domestic workers) may not later use the Section 321 exclusion as a defense.
Confirm details with the Bureau of Workers’ Compensation and a licensed attorney. If the Pennsylvania 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 Pennsylvania 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 Pennsylvania?
Sole proprietors and partners are not employees under the Pennsylvania Act, so they are automatically outside coverage and file no exemption form. LLC members are generally not covered either, but they may choose to buy coverage voluntarily.
Corporate executive officers are covered by default and may elect to be excluded only if they meet one of these rules: (a) in a Subchapter S corporation, any ownership interest; (b) in a Subchapter C corporation, at least a 5 percent interest; (c) in a nonprofit corporation, the officer serves voluntarily and without pay. The search results showed no limit on how many officers may be excluded.
The LIBC-513 declarations filed together must account for 100 percent of the ownership.
What form is the Pennsylvania workers comp exemption?
Form LIBC-509, “Application for Executive Officer Exception,” filed together with one Form LIBC-513, “Executive Officer’s Declaration,” for each officer. The religious exception uses Form LIBC-14A, “Section 304.2 Application for Religious Exception of Specified Employes from the Provisions of the Pennsylvania Workers’ Compensation Act,” with one of these per employee: Form LIBC-14B (affidavit and waiver), a previously issued LIBC-14C certification, or an approved IRS Form 4029..
File it on the state’s own site; filing services charge for the same form.
Can an exempt owner in Pennsylvania 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 Pennsylvania Sources & Resources
- Pennsylvania Pennsylvania Department of Labor and Industry, Bureau of Workers’ Compensation. The State Workers’ Insurance Fund (SWIF) is a competitive insurer of last resort.: https://www.pa.gov/agencies/dli/programs-services/workers-compensation
- Pennsylvania Workers’ Comp Statute: https://www.legis.state.pa.us/WU01/LI/LI/US/HTM/1915/0/0338..HTM
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
This Pennsylvania workers comp exemption guide was last verified against official Pennsylvania 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.