A Wisconsin workers comp exemption lets certain business owners legally go without workers’ compensation coverage on themselves — Sole proprietors, partners and LLC members are not employees under the Act, so they are excluded automatically and do not need to file anything (s. 102.075). Corporate officers are employees and are covered by default.
In a closely held corporation (10 or fewer stockholders), no more than 2 officers may elect to exclude themselves (s. 102.076). The statute sets no ownership-percentage requirement; the limits are the stockholder count and the officer count. — while the law still requires coverage for employees once a business has 3 (coverage is required from the day the 3rd full- or part-time employee is hired).
Coverage is also required with only 1 employee if the employer pays gross wages of 500 or more in any calendar quarter for work done in Wisconsin. In that case coverage must be in place by the 10th day of the 1st month of the next quarter (s. 102.04(1)(b)).
Farm employers must cover workers once they have 6 or more employees on 20 or more days in a calendar year. or more. This guide explains who qualifies for the Wisconsin workers comp exemption, the exact form, where to file it, what it costs, and what an exempt owner gives up. Verified against Wisconsin sources as of October 2026.
Wisconsin at a Glance
| Coverage required at | 3 (coverage is required from the day the 3rd full- or part-time employee is hired). Coverage is also required with only 1 employee if the employer pays gross wages of 500 or more in any calendar quarter for work done in Wisconsin. In that case coverage must be in place by the 10th day of the 1st month of the next quarter (s. 102.04(1)(b)). Farm employers must cover workers once they have 6 or more employees on 20 or more days in a calendar year. employee(s) |
| Who may elect out | Sole proprietors, partners and LLC members are not employees under the Act, so they are excluded automatically and do not need to file anything (s. 102.075). Corporate officers are employees and are covered by default. In a closely held corporation (10 or fewer stockholders), no more than 2 officers may elect to exclude themselves (s. 102.076). The statute sets no ownership-percentage requirement; the limits are the stockholder count and the officer count. |
| Exemption form | WKC-7602-E, Corporate Officer Option Notice (DWD calls it the “Notice of Corporate Officer Option”). It is only for closely held corporations with 1 or 2 officers and no other employees. If the corporation has other employees, there is no state form: the officer exclusion is made by an endorsement on the policy. Sole proprietors, partners and LLC members need no form because they are excluded automatically. |
| Filed with | Wisconsin Department of Workforce Development, Worker’s Compensation Division, Bureau of Insurance Programs, P.O. Box 7901, Madison, WI 53707-7901. The form is posted at https://dwd.wisconsin.gov/dwd/forms/WKC/wkc-7602-e.htm (PDF: https://dwd.wisconsin.gov/dwd/forms/WKC/pdf/wkc-7602.pdf). If the division mails a letter about the election, the corporation must return the form within 15 days of the letter’s date. Endorsement-based exclusions are arranged through the corporation’s WC insurer. |
| Renewal | For the notice filed with DWD (no-policy corporations), the election stays in effect until the officer rescinds it in writing to the department, so no renewal is required (s. 102.076). For the endorsement method, the exclusion is tied to the policy, so it applies for the policy period and should be confirmed at each renewal. A sole proprietor’s, partner’s or LLC member’s elected coverage stays in force until withdrawn with 30 days’ written notice to the insurer and the WCRB. |
| Penalty for being uninsured | Under s. 102.82(2)(a), the penalty for an illegal lapse is twice the premium that would have been paid for the uninsured period, or 750, whichever is greater. Under s. 102.82(2)(ag), a lapse of 7 consecutive days or less is instead penalized at 100 per uninsured day, up to 7 days, if the employer has no prior illegal lapse and no injury occurred. These penalties are mandatory and non-negotiable. The WC Division may order the business to stop operating until it has coverage. If a worker is hurt, the Uninsured Employers Fund may pay benefits, and the uninsured employer must repay the fund (s. 102.82(1)). |
In This Wisconsin Guide:
Who Qualifies for A Wisconsin Workers Comp Exemption
Sole proprietors, partners and LLC members are not employees under the Act, so they are excluded automatically and do not need to file anything (s. 102.075). Corporate officers are employees and are covered by default. In a closely held corporation (10 or fewer stockholders), no more than 2 officers may elect to exclude themselves (s. 102.076).
The statute sets no ownership-percentage requirement; the limits are the stockholder count and the officer count.
Wis. Stat. s. 102.076. No more than 2 officers of a corporation with no more than 10 stockholders may elect not to be subject to Chapter 102. (1) If the corporation has a WC policy (required when it has other employees or officers), the officer may elect out at any time during the policy period.
The exclusion is made by an endorsement on the corporation’s policy that names each excluded officer. (2) If the corporation has no more than 10 stockholders, no more than 2 officers, no other employees, and is not otherwise required to carry a policy, each officer files a notice with the department on a department-approved form. That election lasts until the officer rescinds it by written notice to the department.
An excluded officer is still counted as an employee, and their wages still count toward the 3-employee and 500-per-quarter thresholds.
Partners and LLC members are not counted as employees and are excluded from coverage (s. 102.075). Any sole proprietor, partner or LLC member working in the business on a substantially full-time basis may choose to be covered by buying insurance. This can be an endorsement on an existing WC policy or a separate policy.
All Wisconsin WC policies exclude sole proprietors, partners and LLC members unless the policy is specifically endorsed to include them. A person who elected coverage may withdraw the election with 30 days’ prior written notice to the insurer and the Wisconsin Compensation Rating Bureau.
How to File the Wisconsin Workers Comp Exemption
The form is WKC-7602-E, Corporate Officer Option Notice (DWD calls it the “Notice of Corporate Officer Option”). It is only for closely held corporations with 1 or 2 officers and no other employees. If the corporation has other employees, there is no state form: the officer exclusion is made by an endorsement on the policy. Sole proprietors, partners and LLC members need no form because they are excluded automatically..
It is filed with Wisconsin Department of Workforce Development, Worker’s Compensation Division, Bureau of Insurance Programs, P.O. Box 7901, Madison, WI 53707-7901. The form is posted at https://dwd.wisconsin.gov/dwd/forms/WKC/wkc-7602-e.htm (PDF: https://dwd.wisconsin.gov/dwd/forms/WKC/pdf/wkc-7602.pdf). If the division mails a letter about the election, the corporation must return the form within 15 days of the letter’s date. Endorsement-based exclusions are arranged through the corporation’s WC insurer..
Renewal: For the notice filed with DWD (no-policy corporations), the election stays in effect until the officer rescinds it in writing to the department, so no renewal is required (s. 102.076). For the endorsement method, the exclusion is tied to the policy, so it applies for the policy period and should be confirmed at each renewal.
A sole proprietor’s, partner’s or LLC member’s elected coverage stays in force until withdrawn with 30 days’ written notice to the insurer and the WCRB.. 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.
Wisconsin Workers Comp Exemption Rules at a Glance
The exact Wisconsin workers comp exemption rules every owner should check before deciding to go without coverage:
| Employee threshold | 3 (coverage is required from the day the 3rd full- or part-time employee is hired). Coverage is also required with only 1 employee if the employer pays gross wages of 500 or more in any calendar quarter for work done in Wisconsin. In that case coverage must be in place by the 10th day of the 1st month of the next quarter (s. 102.04(1)(b)). Farm employers must cover workers once they have 6 or more employees on 20 or more days in a calendar year. |
| Who may elect out | Sole proprietors, partners and LLC members are not employees under the Act, so they are excluded automatically and do not need to file anything (s. 102.075). Corporate officers are employees and are covered by default. In a closely held corporation (10 or fewer stockholders), no more than 2 officers may elect to exclude themselves (s. 102.076). The statute sets no ownership-percentage requirement; the limits are the stockholder count and the officer count. |
| Corporate officers | Wis. Stat. s. 102.076. No more than 2 officers of a corporation with no more than 10 stockholders may elect not to be subject to Chapter 102. (1) If the corporation has a WC policy (required when it has other employees or officers), the officer may elect out at any time during the policy period. The exclusion is made by an endorsement on the corporation’s policy that names each excluded officer. (2) If the corporation has no more than 10 stockholders, no more than 2 officers, no other employees, and is not otherwise required to carry a policy, each officer files a notice with the department on a department-approved form. That election lasts until the officer rescinds it by written notice to the department. An excluded officer is still counted as an employee, and their wages still count toward the 3-employee and 500-per-quarter thresholds. |
| LLC members and partners | Partners and LLC members are not counted as employees and are excluded from coverage (s. 102.075). Any sole proprietor, partner or LLC member working in the business on a substantially full-time basis may choose to be covered by buying insurance. This can be an endorsement on an existing WC policy or a separate policy. All Wisconsin WC policies exclude sole proprietors, partners and LLC members unless the policy is specifically endorsed to include them. A person who elected coverage may withdraw the election with 30 days’ prior written notice to the insurer and the Wisconsin Compensation Rating Bureau. |
| Form | WKC-7602-E, Corporate Officer Option Notice (DWD calls it the “Notice of Corporate Officer Option”). It is only for closely held corporations with 1 or 2 officers and no other employees. If the corporation has other employees, there is no state form: the officer exclusion is made by an endorsement on the policy. Sole proprietors, partners and LLC members need no form because they are excluded automatically. |
| Where to file | Wisconsin Department of Workforce Development, Worker’s Compensation Division, Bureau of Insurance Programs, P.O. Box 7901, Madison, WI 53707-7901. The form is posted at https://dwd.wisconsin.gov/dwd/forms/WKC/wkc-7602-e.htm (PDF: https://dwd.wisconsin.gov/dwd/forms/WKC/pdf/wkc-7602.pdf). If the division mails a letter about the election, the corporation must return the form within 15 days of the letter’s date. Endorsement-based exclusions are arranged through the corporation’s WC insurer. |
| Renewal | For the notice filed with DWD (no-policy corporations), the election stays in effect until the officer rescinds it in writing to the department, so no renewal is required (s. 102.076). For the endorsement method, the exclusion is tied to the policy, so it applies for the policy period and should be confirmed at each renewal. A sole proprietor’s, partner’s or LLC member’s elected coverage stays in force until withdrawn with 30 days’ written notice to the insurer and the WCRB. |
| Proof of exemption or coverage | The Wisconsin Compensation Rating Bureau Coverage Lookup (https://www.wcrb.org/coverage-lookup/, linked from DWD at https://dwd.wisconsin.gov/wc/er-ins-lookup.htm) shows whether an employer has a current Wisconsin WC policy, searchable by employer name or address and by accident date from October 1991 on. The data is updated weekly. Clients and general contractors usually also ask the insurer for a certificate of insurance. For an excluded corporate officer, proof is the filed WKC-7602-E or the policy endorsement naming the excluded officer. If an employer can’t be found, DWD says not to assume they lack coverage and to contact [email protected] or 608-266-3046. |
What A Wisconsin Workers Comp Exemption Gives Up
An exempt owner who is hurt on the job in Wisconsin 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 Wisconsin 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.
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Workers Exempt by Law in Wisconsin
Separate from the owner’s election, Wisconsin 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 Wisconsin Workers Comp Exemption or Coverage
The Wisconsin Compensation Rating Bureau Coverage Lookup (https://www.wcrb.org/coverage-lookup/, linked from DWD at https://dwd.wisconsin.gov/wc/er-ins-lookup.htm) shows whether an employer has a current Wisconsin WC policy, searchable by employer name or address and by accident date from October 1991 on. The data is updated weekly. Clients and general contractors usually also ask the insurer for a certificate of insurance.
For an excluded corporate officer, proof is the filed WKC-7602-E or the policy endorsement naming the excluded officer. If an employer can’t be found, DWD says not to assume they lack coverage and to contact [email protected] or 608-266-3046.
Why the Wisconsin Workers Comp Exemption Matters
The Wisconsin 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) An employer that has gone a full calendar year without 3 or more employees and without paying 500 or more in gross wages in any quarter may drop coverage by filing a notice of withdrawal with the WC Division and waiting 30 days. (2) Excluded corporate officers are still counted as employees, with their wages included, when deciding whether coverage is required.
(3) Employers may apply for an exemption for workers who belong to a qualifying religious sect. The sect must have a long-standing history (25 years is presumed long-standing) of supporting its injured members, the worker must waive WC rights, and the sect must agree to provide benefits (s. 102.28). (4) Independent-contractor status requires meeting all 9 parts of the s. 102.07(8) test.
(5) The policy must list Wisconsin as a covered state in Item 3-A. Confirm details with the DWD Worker’s Compensation Division and a licensed attorney. If the Wisconsin 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 Wisconsin 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 Wisconsin?
Sole proprietors, partners and LLC members are not employees under the Act, so they are excluded automatically and do not need to file anything (s. 102.075). Corporate officers are employees and are covered by default. In a closely held corporation (10 or fewer stockholders), no more than 2 officers may elect to exclude themselves (s. 102.076).
The statute sets no ownership-percentage requirement; the limits are the stockholder count and the officer count.
What form is the Wisconsin workers comp exemption?
WKC-7602-E, Corporate Officer Option Notice (DWD calls it the “Notice of Corporate Officer Option”). It is only for closely held corporations with 1 or 2 officers and no other employees. If the corporation has other employees, there is no state form: the officer exclusion is made by an endorsement on the policy. Sole proprietors, partners and LLC members need no form because they are excluded automatically..
File it on the state’s own site; filing services charge for the same form.
Can an exempt owner in Wisconsin 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 Wisconsin Sources & Resources
- Wisconsin Wisconsin Department of Workforce Development (DWD), Worker’s Compensation Division: https://dwd.wisconsin.gov/wc/
- Wisconsin Workers’ Comp Statute: https://docs.legis.wisconsin.gov/statutes/statutes/102/076
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
This Wisconsin workers comp exemption guide was last verified against official Wisconsin 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.