Who Must Carry Workers' Compensation in Georgia?

In Georgia, any employer with three or more employees—full‑time or part‑time—must carry workers' compensation insurance, regardless of the nature of the work or the employer's revenue. Sole proprietors, partners, and corporate officers who do not receive wages are exempt, as are certain family‑owned businesses employing fewer than three workers. Specific industries, such as construction, often have additional oversight, but the three‑employee rule is the baseline legal requirement.

General Requirement Overview

The state law defines an employer as any person or entity that hires individuals to perform services for compensation. Once the employee count reaches three, the employer must obtain coverage through a private insurer, the State Board of Workers' Compensation, or a self‑insured arrangement approved by the board.

Exemptions and Special Cases

Exempt parties include:

• Sole proprietors and partners who do not draw a salary.
• Corporate officers who are not paid wages.
• Family members employed by a family‑owned business, provided the business has fewer than three non‑family employees.

Even exempt individuals may choose to obtain coverage voluntarily to protect against personal liability.

Industry‑Specific Considerations

While the three‑employee rule applies universally, high‑risk sectors such as construction, manufacturing, and healthcare often face stricter safety inspections and higher insurance premiums. Employers in these fields should verify that their policy covers industry‑specific hazards.

Compliance Process

To comply, an employer must:

• Register with the Georgia State Board of Workers' Compensation.
• Provide proof of insurance to the board within 30 days of reaching the employee threshold.
• Maintain records of coverage and employee payroll for at least three years.

Failure to secure coverage can result in fines, civil penalties, and potential criminal charges.

Self‑Insurance Option

Large employers may apply for self‑insurance, which requires demonstrating financial stability, posting a bond, and adhering to board‑approved safety programs. The board conducts periodic audits to ensure ongoing compliance.

Key Differences Compared to Other States

Georgia's three‑employee threshold is lower than many states that require coverage at five or ten employees. Additionally, Georgia does not mandate coverage for agricultural workers unless they are classified as regular employees.

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