A general contractor in Georgia hires 5 employees. According to Georgia law, what is the minimum workers' compensation insurance requirement?
Correct Answer
D) Must carry workers' compensation insurance
Georgia requires all employers with 3 or more employees to carry workers' compensation insurance, including part-time and seasonal workers.
Why This Is the Correct Answer
Georgia law (O.C.G.A. § 34-9-2) requires all employers with 3 or more employees — including part-time and seasonal workers — to carry workers' compensation insurance. With 5 employees, this contractor is well above the threshold and must carry coverage.
Why the Other Options Are Wrong
Option A: Coverage is optional with 5 employees
Coverage is never optional once an employer meets the 3-employee threshold in Georgia. Reaching 5 employees makes coverage mandatory, not discretionary.
Option B: Required only for employees working above ground level
Workers' compensation covers all work-related injuries regardless of elevation or location. There is no exemption limiting coverage to employees working above ground level.
Option C: Only required if payroll exceeds $50,000
Georgia law sets the requirement based on the number of employees, not payroll amounts. There is no $50,000 payroll threshold; the 3-employee count is the only trigger.
Memory Technique
Think '3 strikes and you're IN' — once you have 3 or more employees in Georgia, you're IN for mandatory workers' comp. Five is more than three, so full coverage required.
More Georgia Questions
A contractor discovers that a building permit was issued in error and the project violates setback requirements. According to Georgia regulations, what is the contractor's primary obligation?
A contractor employs workers in both construction and office roles. The construction rate is 11.2 per $100 and office rate is 0.8 per $100. Construction payroll is $85,000 and office payroll is $45,000. What is the total workers compensation premium?
Which situation would require a Georgia contractor to obtain workers' compensation insurance?
A contractor receives a stop work order from the local building official. The contractor continues working despite the order. What is the typical penalty range?
A contractor's license expires on June 30th. They submit a renewal application on July 15th. What additional requirement must they meet?
A Georgia contractor completes work valued at $15,000 on March 1st. The property owner fails to pay. What is the deadline for filing a materialman's lien?
A contractor fails to pay workers' compensation premiums and coverage lapses. An employee is injured the next day. What is the contractor's liability?
A contractor discovers that the local building official is interpreting a code provision differently than expected. What is the proper appeal process in Georgia?
A contractor's annual payroll is $450,000. If the workers compensation rate is 8.5 per $100 of payroll, what is the annual premium?
What is the threshold amount above which a contractor must be licensed in Georgia?
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