Farm Labor Exemption
Several states exempt farm labor from operation of the state's workers' compensation statute. Though a farm employer may be exempt from compulsory workers' compensation participation, he is not precluded from voluntarily electing to do so. Once he does, the farmer is just like any other employer who can claim tort action protection pursuant to the workers' compensation exclusivity provision.
The motivation for the farm labor exemption has been found through several lines of reasoning. The strongest argument for the exemption appears to be that small farmers would find it extremely difficult to handle participation in the workers' compensation program. Basically, the premiums, recordkeeping and accounting requirements, and general administration of the program would be practically prohibitive for the farmer. Other arguments favoring the exemption are that the farmer is unable to pass the cost of compensation coverage on to the consumer and that farm workers do not need workers' compensation coverage.
Whether the exemption applies depends upon the work that the employees regularly perform, not the nature of the employer's business. A farmer will not lose his farm labor exemption if an employee occasionally performs non-agricultural work. The benchmark is the work that the employee regularly or usually performs.
Agricultural activity includes cultivating the soil and growing crops and orchards. Raising farm animals is also regarded as an agricultural activity. Employees who perform commercial activities such as canning, packing, and marketing are not generally considered "farm laborers." The employee's normal work activities must fall into the agricultural rather than commercial area for the exemption to apply.
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