Rhode Island
Workers' Comp Exemption

Rhode Island moves from owner-only to employer coverage as soon as the first employee is hired

DLT states that, with limited exceptions, employers with one or more employees must carry workers' compensation insurance. The agency separately lists individual owners and partners as exempt.

Those two statements should be read together. A sole proprietor does not need personal employee coverage merely for owning the business, but the proprietor's first employee creates a company-level obligation that the owner's status does not erase.

The same separation applies to a partnership. Keep owner treatment in one file and policy proof for employees in another so a project manager cannot mistake an owner exemption for a no-insurance certificate covering the entire business.

DWC-11 is a common-law-right election for a person who would otherwise be in the workers' compensation system

DLT says most corporate officers are included under the Workers' Compensation Act unless they file a Notice of Claim of Common Law Rights, DWC-11. By signing the waiver, the person gives up workers' compensation rights and preserves the ability to pursue common-law remedies for a work injury.

That is materially different from saying the corporation is exempt. Employees who remain covered still need the employer's policy, and DLT warns that a DWC-11 signer is not protected by workers' compensation for the work injury addressed by that election.

DLT's 2024 informational letter increased the DWC-11 filing fee to $50 effective July 1, 2024. Use the current DLT form rather than an old PDF showing a superseded fee.

Rhode Island's statute expressly mentions LLC managers and members, but the public filing path deserves a confirmation step

Section 28-29-17 names managers, managing members, and members of a limited liability company alongside employees and corporate officers in the common-law-right waiver rules. It also imposes notice timing tied to hire or appointment and filing with the Director.

DLT's public employer page, however, describes DWC-11 primarily as the corporate-officer waiver and does not publish a separate form titled 'LLC member exemption.' That mismatch is a reason to confirm the current filing procedure with DLT before an LLC owner relies on a waiver.

The safe article does not invent an ownership percentage or a new LLC form. It records what the statute says, what DLT currently publishes, and where the owner should obtain confirmation when the two sources use different shorthand.

The common-law-right election uses annual terms and advance timing rather than a simple permanent waiver stamp

Section 28-29-17 states that the waiver framework continues for one year and then for successive one-year terms unless the person timely files the notice needed to change the common-law-right position. The statute also contains a 60-day advance timing rule for a change before a term expires.

That makes calendar control important for a covered corporate officer or LLC principal. A status choice made years ago should not be assumed correct after an appointment change, entity conversion, or policy restructuring.

Keep the filed DWC-11 or other DLT-confirmed waiver record with the corporate/LLC appointment documents and set a review reminder before the next annual term.

DWC-11-IC belongs to an independent-contractor relationship and must name the hiring entity

Rhode Island's independent-contractor process is separate from an owner/officer waiver. DLT requires a person claiming independent-contractor status for workers' compensation to file DWC-11-IC for each hiring entity.

The filing is valid for one year unless withdrawn, and the hiring business can verify the filing through DLT. A contractor with one or more employees still needs workers' compensation for those employees; the contractor designation does not turn the contractor's crew into independent contractors.

Do not ask an employee to sign DWC-11-IC merely to reduce premiums. DLT explicitly warns that coercion or misrepresentation of employee status can lead to criminal prosecution.

A missing policy can become a daily penalty and stop-business problem, so the waiver file must never replace policy verification

DLT's employer page states that a business failing to provide required workers' compensation insurance may be fined $1,000 for each day without coverage, can face felony consequences, and may be closed by the Director.

The compliance workflow should therefore ask two questions independently: which named owners/officers have a valid personal waiver or exemption, and does the company have active insurance for every worker who remains covered?

Recheck both after the first hire, an officer appointment, LLC management change, new independent contractor, or a lapse/cancellation in the workers' compensation policy.

What failing to insure actually costs in Rhode Island

Rhode Island runs a daily civil fine alongside separate felony exposure, reaches individual corporate officers directly, and the state can shut the business down immediately rather than waiting for a court date.

Under R.I. Gen. Laws § 28-36-15, an employer that knowingly fails to secure required coverage is guilty of a felony punishable by up to 2 years in prison, and is separately subject to a civil penalty of up to $1,000 for each day of noncompliance, with each day counted as its own offense. Corporate officers and LLC managers or managing members can be held personally, severally liable for these penalties.

The Director of the Department of Labor and Training can also issue a Stop Work Order suspending business operations immediately until coverage is secured; continuing to operate after the order is served brings an emergency enforcement petition to the Workers' Compensation Court. The order is rescinded as soon as proof of coverage is provided.

• Knowing failure to secure coverage: felony, up to 2 years in prison
• Civil penalty: up to $1,000 for each day of noncompliance, each day a separate offense
• Corporate officers and LLC managers/managing members can be personally liable
• Director can issue an immediate Stop Work Order; rescinded once coverage is proven