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GLOSSARY TERM

Exemption

A workers' compensation status that removes an otherwise covered owner, officer, member, worker, or employment category from a statutory coverage requirement when state law allows it.

Exemption rules are created by state workers' compensation law. Some exempt categories are automatic; others require an election, application, ownership threshold, agency approval, or a certificate before the exemption is effective.

Florida states that its owner exemptions are issued to qualifying corporate officers or LLC members, not to the business as a whole, and that an exempt person may not recover workers' compensation benefits under that exemption. Other states use different terminology and filing systems.

OFFICIAL SOURCE

Where this definition comes from

Glossary entries are anchored to a state agency, statute, board, commission, or recognized workers' compensation authority rather than a generalized summary.

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