Who Needs Workers' Comp in Georgia?
Under Georgia Code Title 34, Chapter 9, employers with three or more employees are required to carry workers' compensation insurance. This includes part-time, seasonal, and temporary workers. Corporate officers and LLC members count toward the three-employee threshold. Officers can elect to exempt themselves from coverage, but they still count for determining whether the business meets the requirement.
Penalties for Non-Compliance
Georgia's State Board of Workers' Compensation (SBWC) enforces compliance actively. Penalties include fines up to $10,000 or the cost of the coverage (whichever is greater), criminal misdemeanor charges for each day of non-compliance, personal liability for all employee medical and disability costs, and stop-work orders that immediately halt business operations.
Georgia's Competitive Rate Environment
Georgia generally has lower workers' comp costs than the national average, making it a favorable state for employers. The state uses NCCI class codes and operates as a competitive rating market, meaning carriers file their own rates. Georgia's moderate regulatory environment and employer-friendly reforms have contributed to stable, competitive pricing. Shopping multiple carriers remains important as rates can vary significantly.
Common Georgia Class Codes
| Code | Description | Risk Level |
|---|---|---|
| 8810 | Clerical Office Employees | Low |
| 8742 | Outside Salespersons | Low |
| 9101 | Restaurant NOC | Medium |
| 8204 | Building Material Yard | Medium |
| 5645 | Carpentry — Detached Dwellings | Medium-High |
| 5606 | Contractors — General | Medium-High |
| 5551 | Roofing — All Kinds | High |