New Workers’ Compensation Regulations – Exclusion of Corporate Officers – Partners – LLC Members

Effective January 1, 2017, AB 2883, makes the following changes:

Any eligible individual (officer, director, general partner, managing member) electing exclusion from workers’ compensation benefits must provide a signed waiver to the insurance carrier prior to January 1, 2017.

For corporations, officers and directors (i.e., members of the Board of Directors) must now also meet a 15% ownership threshold in order to be eligible for exclusion.

For partnerships, only general partners are eligible for exclusion.

For LLCs, only managing members are eligible for exclusion.

This new law will not affect existing individual exclusions for most of our clients, however by January 1, 2017, all policyholders will be required to sign a waiver for each individual to be excluded.  We will keep you posted as to future developments but welcome any questions that you may have in the meanwhile.