Workers comp coverage required in Georgia
Employers with 3 or more employees, including full-time, part-time, and seasonal. Verified 2026-05-09.
Who must carry workers comp in Georgia?
Georgia workers compensation coverage is required Employers with 3 or more employees, including full-time, part-time, and seasonal.
The threshold language matters: states write the rule slightly differently. Some count any worker, some count only W-2 employees, some count owners separately, some have industry-specific exemptions (agriculture, domestic service, casual labor). For a Georgia employer with a non-trivial workforce, the safest default is: assume coverage is required and confirm with the state department of insurance or a local agent.
How the threshold interacts with 1099s and subs
Workers classified as independent contractors (1099) are generally not covered, but misclassification can lead to liability for the employer. General contractors are typically liable for the workers' compensation coverage of uninsured subcontractors and their employees.
Penalty for going without
Penalties include fines up to $5,000, stop-work orders, and potential criminal charges. The financial penalty is usually a fraction of the human cost: an injured employee at an uncovered employer can sue directly under tort law instead of being limited to the workers comp benefit, exposing the owner to lost-wage damages, pain and suffering, and punitive damages without the corporate veil.
Related reading
FAQs
Who has to carry workers comp in Georgia?
Employers with 3 or more employees, including full-time, part-time, and seasonal.
When does the requirement kick in for a new Georgia employer?
The clock starts on the first day the first qualifying employee is on the books. Georgia does not have a grace period for new employers, so a policy needs to be bound on or before the first hire date. Some agents can issue same-day binders for low-risk class codes.
What is the penalty for not having workers comp in Georgia?
Penalties include fines up to $5,000, stop-work orders, and potential criminal charges.
Do 1099 contractors trigger the coverage requirement in Georgia?
Workers classified as independent contractors (1099) are generally not covered, but misclassification can lead to liability for the employer.
Are subcontractors counted toward the threshold in Georgia?
General contractors are typically liable for the workers' compensation coverage of uninsured subcontractors and their employees.
What happens if I am audited and found non-compliant in Georgia?
Georgia typically issues a stop-work order, assesses back premium for the period of non-coverage, and adds penalties on top. Specifically: Penalties include fines up to $5,000, stop-work orders, and potential criminal charges. Severe or repeat violations can lead to criminal charges and personal liability for the business owner, separate from the corporate veil.