Georgia Workers’ Comp 2025: 3-Employee Rule, Penalties & Compliance Guide

Georgia Workers’ Comp (2025): Minimum Employer Requirements

In Georgia, most employers must carry workers’ compensation insurance once they have three or more employees (including full-time, part-time, or seasonal workers). Early compliance is crucial: failure to insure can lead to fines, criminal penalties, and a 10% increase in benefits for injured employees.

This guide explains who’s covered, how to count employees, posting rules, carrier vs. self-insurance, penalties, and audit preparation—based on 2025 guidance from the State Board of Workers’ Compensation (SBWC).

Who’s covered

• Employers with three or more employees—full-time, part-time, or seasonal—must carry coverage.
• Corporate officers and LLC members are included in the count (up to five may exempt themselves, but they still count toward the total).
• Sole proprietors and partners with no other employees are exempt but may opt in voluntarily.

Counting employees

• All workers—full-time, part-time, and seasonal—are counted.
• Corporate officers may exclude themselves from benefits using Form WC-10, but the employer still must carry coverage if the 3-employee rule is met.
• Independent contractors are not counted unless they’re misclassified or directly supervised like employees.

Required postings

• Display the Workers’ Compensation Bill of Rights and your insurer’s certificate in a visible area.
• Post your approved Panel of Physicians or Managed Care Organization (MCO) list.
• Ensure all postings are current and bilingual if required by workplace demographics.

Carrier vs. self-insure

• Insured option: Purchase a policy from a Georgia-licensed carrier.
• Self-insured option: Apply through the SBWC with audited financials, a surety bond or letter of credit, and pay the required fees.

Penalties

• Failure to carry insurance: $500–$5,000 fine per violation.
• False statements or intentional noncompliance: up to $10,000 fine and potential misdemeanor penalties.
• Employers without coverage may owe an additional 10% benefit increase to injured workers.

Audit prep

• Keep accurate employee lists and work classifications.
• Verify your policy is valid and posted.
• Update all compliance posters annually.
• Respond promptly to any SBWC inquiries or audit requests.

FAQ

Key Takeaways

• Georgia requires workers’ comp coverage for businesses with three or more employees.
• Officers may opt out but still count toward the minimum threshold.
• Penalties for non-compliance can include fines and criminal charges.
• Maintain postings, records, and timely audits for compliance.

References

• State Board of Workers’ Compensation – Employer Information
• OnPay – Georgia Workers’ Comp Requirements
• Gerber & Holder – GA Workers’ Comp Penalties

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