Workers’ Compensation for Contractors.

Workers’ compensation is a critical component of business compliance when hiring employees or working with contractors. Requirements vary significantly across the U.S., especially when it comes to contractors and businesses with only one employee. In this article, we focus on:

• Georgia’s workers’ compensation rules for contractors.

• States that require coverage even when a business has just one employee.

⚖️ Georgia Workers’ Compensation Requirements for Contractors

1. Coverage Threshold in Georgia

In Georgia, under the State Board of Workers’ Compensation:

• Any business with three or more full-time, part-time, or seasonal employees must carry workers' compensation insurance.

• This includes corporate officers, unless they file to exempt themselves.

2. Independent Contractors

Independent contractors are not automatically covered. However, classification is strictly monitored:

• Misclassifying an employee as an independent contractor can trigger penalties, back premiums, and liability for injuries.

• The state evaluates control over the worker’s time, tools, training, and independence to determine true status.

3. Subcontractors in Construction

In the construction industry, general contractors can be liable for injuries to uninsured subcontractors.

Georgia Best Practices:

• Always require subcontractors to provide a Certificate of Insurance (COI).

• Have signed agreements confirming contractor status.

• Consider obtaining “if-any” workers’ compensation coverage to protect against disputes.

🌎 States That Require Workers’ Compensation with One Employee

Many states mandate workers' comp even for a single employee. Below is a breakdown of states with strict low-employee thresholds:

State	Requirement
California	Required for any employee. Also includes certain independent contractors.
New York	Required if you have even one employee.
New Jersey	Mandatory for one or more employees, including part-time.
Florida	Required for one employee in construction; otherwise, threshold is 4.
Massachusetts	Required for any employee.
Illinois	Required for one or more employees.
Connecticut	Required for any employee.
Washington	Required for one or more employees. Also applies to contractors.
Oregon	Required even for part-time or temporary workers.
Nevada	Mandatory for one or more employees.

⚠️ Note: Many states treat certain industries, especially construction, with stricter rules. Also, sole proprietors hiring others may need coverage even if they themselves are exempt.

💼 Why This Matters for Business Owners

• Legal Compliance: Avoid state fines, lawsuits, and business closures.

• Risk Mitigation: Protect yourself from medical and legal costs related to workplace injuries.

Audit Readiness: States and insurance carriers can audit and impose backdated penalties if you fall short.

📌 Final Recommendations

1. Verify classification of any contractor—especially if they’re long-term or working under your supervision.

2. Secure COIs and maintain them on file.

3. If you have any employees or hire subs, consult a qualified insurance agent or legal professional to confirm if workers' comp is needed.

Don’t rely on federal definitions alone—always check state-specific rules.

📞 Get a Custom Quote Today!

Make sure your business is protected and compliant.

👉 Call us now to get a workers’ compensation insurance quote or speak with a licensed advisor:

📱 678-780-8615

ℹ️ Disclaimer:

This material is provided for informational purposes only and does not constitute legal or insurance advice. Requirements and regulations may change. Always consult with a licensed insurance agent or attorney familiar with workers’ compensation laws in Georgia.