Under Iowa's workers' compensation law (IA Code Sec. 85.1et seq.) virtually all employees must be covered by workers' compensation insurance. The only exceptions are the following types of workers:
• Domestic and casual employees who earn less than $1,500 from their employer during the 12 consecutive months before the injury
• Agricultural employees whose employer has a payroll of less than $2,500 in the calendar year preceding the injury
• Sole proprietors in the field of agriculture, officers of family farm corporations, and close relatives of such proprietors and officers
• Police officers and firefighters who are entitled to benefits under a pension fund established under state law
• The top four officers of any corporation (other than a family farm), but only if they elect to waive coverage by completing a prescribed form
• Employees with physical defects that increase the risk of injury, but only if they agree to waive coverage for injuries caused by the defect and only with the approval of the state industrial commissioner
Employers may elect to provide coverage for workers in any of the exempt categories by purchasing a valid workers' compensation policy covering them. A partner in a limited liability company may elect coverage.