News, Articles & Updates

IMPORTANT CHANGE AFFECTS EMPLOYEES PREVIOUSLY EXEMPT FROM WORKERS’ COMPENSATION

A new change in California workers’ compensation law now requires all previously exempt employees  – including officers, directors, and working partners of a business –  to submit insurance waivers to their insurance carriers in order to remain exempt from workers’ compensation insurance requirements. Previously, these employees were automatically exempt from coverage, requiring no affirmative action on their part.

To remain exempt from the new rules, which become effective January 1, 2017, employees must submit insurance waivers to their insurance carriers before December 31, 2016. The new law specifically defines qualifying exempt employees as owners or directors owning 15% or more of a corporation’s stock, general partners of a partnership, and managing members of an LLC.

Employers should receive waiver forms from their workers’ compensation insurance carriers. Employers may direct additional questions regarding these changes to employment attorneys at the Mitzel Group.