Certain Employees Excluded from Coverage under Iowa Workers’ Compensation Act

by | Nov 21, 2014

According to Iowa Code §85.1, the Iowa Workers’ Compensation Act does not apply to the following:

(1) An employee whose employment is purely casual and not for the purpose of the employer’s trade or business.

(2) An employee who earns $1,500.00 or more per year by performing services in or about a private dwelling and who is not a regular “member of the household.” “Member of the household” is defined as the spouse of the employer or relatives of either the employer or spouse who also reside on the premises of the employer.

(3) An employee engaged in agricultural pursuits or any operations immediately connected with agricultural matters either on or off the employer’s premises. Additionally, under Iowa Code §85.1(3)(b), spouses, parents, brothers, sisters, children, and stepchildren of the agricultural employer are not covered under the Act. If, however, an employee is not specifically exempted under §85.1(3)(b) and makes $2,500.00 or more during the calendar year preceding the injury, such employee is covered under the Act.

(4) Firefighters and police officers. These employees are entitled to benefits under Iowa Code §410 and §411.

(5) Officers in a corporation. The president, vice president, and treasurer of a corporation other than a family farm corporation, not to exceed four officers per corporation, are not covered if such officers knowingly and voluntarily reject workers’ compensation coverage. Iowa Code §87.22 contains a form for the written rejection of workers’ compensation benefits.

However, under Iowa Code §85.1(6), employers may assume liability for any of the employees specifically exempted from the Act by purchasing valid workers’ compensation insurance. Such a purchase creates an assumption by the employer of liability without any further act on the part of the employer. Upon an election of such coverage, the employee must accept compensation under the provisions of the Act and the employer is relieved from any other liability for recovery of damages or compensation for the injury.

For more information about which types of employees are excluded from coverage under the Iowa Workers’ Compensation Act, please contact Sara Hughes at shughes@baylorevnen.com or any of the Baylor Evnen Iowa Workers’ Compensation Attorneys at (402) 475-1075.