In Mississippi you must carry workers compensation once you have five or more workers regularly in the same business (Mississippi Code section 71-3-5). With four or fewer the state does not require it, though plenty of owners buy anyway, because a single serious injury can cost more than years of premium.
Who this is for: Mississippi owners trying to figure out whether the law reaches them yet, and what changes as they grow past four employees.
The short version
- The trigger is five, with no construction exception. Five or more regular employees makes coverage mandatory (Mississippi Code section 71-3-5). Mississippi sets no lower number for contractors; the same five-employee rule applies to a builder as to anyone else.
- Part-time and seasonal count. Mississippi counts regular part-time and seasonal workers toward the five, so you cannot stay under the line just by keeping people part-time.
- Working owners count too, by default. A sole proprietor, partner, or 15 percent corporate owner is a person in service who counts, unless the business files a written election to exempt them, which also drops them from the count.
- Some businesses are excluded entirely. Charitable, religious, fraternal, and cultural nonprofits, domestic workers in a home, and farm labor are outside the mandate no matter your size.
- Coverage should be in place before the fifth hire starts. Once you are subject, an injured worker is covered, so do not wait until after someone gets hurt.
How Mississippi counts to five
The count is about people working regularly in your business, not just full-time payroll. Here is how the common cases land.
| Worker or owner | Counts toward the five? | Notes |
|---|---|---|
| Full-time employee | Yes | Must be covered once you are subject |
| Regular part-time or weekend staff | Yes | No hours minimum for the count |
| Seasonal staff you rehire each year | Usually yes | A regular seasonal pattern counts |
| A true one-off casual helper | No | Work outside your regular business is not counted |
| Working sole proprietor or partner | Yes, unless exempted | Counts unless a written election leaves them out |
| Corporate owner with 15 percent or more stock | Yes, unless exempted | May opt out in writing; that removes them from the count |
| A 1099 worker you control day to day | Usually yes | See Mississippi's control test for contractors |
Who is left out no matter your size
Some employers and workers are outside the Mississippi law regardless of headcount. Nonprofit charitable, fraternal, cultural, or religious corporations and associations are expressly excluded from the mandate. Domestic workers in a private home and farm laborers are also outside it, although commercial processing of farm products is covered. Mississippi does not have a blanket casual-labor or real estate exemption, so do not assume one applies. When a worker's status is contested, the state settles it through the employee-versus-contractor control test, not a casual-work label. When you are unsure whether a role counts, the Mississippi Workers' Compensation Commission is the place to confirm.
Below the threshold: not required, but exposed
With four or fewer employees you are not required to carry workers comp, and you are also outside the protection the law gives employers. That cuts both ways. The upside is no state mandate yet. The downside is that the injury-lawsuit shield, which normally stops a hurt worker from suing you directly, does not protect a business that was not required to carry coverage but should have. A serious injury at a small shop can turn into a lawsuit and a bill you pay yourself. Many small Mississippi owners buy a policy voluntarily for exactly this reason. If a client or general contractor requires coverage, see how to get a policy.
A Hattiesburg example
Illustrative, not a quote. A Hattiesburg cleaning company has three full-time cleaners and two steady part-timers. That is five people working regularly in the business, so Mississippi requires a policy even though two are part-time. The owner puts coverage in place before the busy season, and when a cleaner strains a back lifting equipment, comp pays the medical bills and part of the lost wages instead of turning into a lawsuit. We make sure the payroll is rated on the right kind of work so the price is fair. See the trade detail on our workers comp for cleaning and janitorial businesses page.
Real questions Mississippi owners ask
Do I need workers comp for my Mississippi business?
Once you have five or more workers regularly in the business, yes, under Mississippi Code section 71-3-5. With four or fewer the state does not require it, but many owners still buy it to avoid a lawsuit or a large out-of-pocket bill.
How many employees trigger workers comp in Mississippi?
Five. The requirement starts at five or more workers regularly in the same business, and part-time and seasonal workers generally count. Mississippi sets no lower number for construction, so contractors follow the same five-employee rule.
Do part-time and seasonal workers count toward the five?
Yes. Mississippi generally counts regular part-time and seasonal workers the same as full-timers for the five-employee test. Keeping people part-time does not keep you under the line.
Do working owners count toward the five in Mississippi?
By default, yes. A working sole proprietor, partner, or corporate owner with 15 percent or more of the stock is a person in service and counts, unless the business files a written election, signed by that owner, to leave them out.
Are nonprofits and farm workers exempt in Mississippi?
Often, yes. Charitable, religious, fraternal, and cultural nonprofits are expressly excluded from the mandate, and domestic workers in a home and farm laborers are outside it too. Commercial processing of farm products is covered, so confirm your case with the Commission.
Can I avoid coverage by using 1099 contractors?
Usually not. If a worker is really an employee under Mississippi's control test, they count toward the five and must be covered no matter what the paperwork says. Misclassifying workers is a common and costly mistake.
Does a new hire have to be covered right away?
Yes, once your business is subject to the law. Put a policy in place before your fifth person starts, because an injury on day one is still covered and still your responsibility.
Who enforces the workers comp requirement in Mississippi?
The Mississippi Workers' Compensation Commission administers the workers comp law and handles disputes, while the Mississippi Insurance Department regulates the insurance rates. For your coverage duty, the Commission is the place to confirm.
Why Mississippi owners choose Morrow
- We shop the right market for you. In Mississippi you buy workers comp on the open market from any private insurer licensed in the state, because Mississippi has no state fund, and if no carrier will take you the NCCI-run assigned risk plan is the guaranteed fallback, so we can shop your rate freely and still have a backstop for hard-to-place work.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Mississippi guides
Every Mississippi business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Mississippi (start here)
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Hiring your first employee: what changes
- Workers comp vs employers liability
- Mississippi cleaning workers comp
This guide is general information, not legal advice. Mississippi rules and penalty amounts can change, so verify current requirements with the Mississippi Workers' Compensation Commission or a licensed advisor before you rely on them. Last updated: July 2026.