Beginning July 1, 2018, provisions in Senate Bill 189 governing changes in employee and waiver status for the purpose of workers’ compensation coverage will become effective. The following changes may impact coverage:
- A person with power to revoke a trust with respect to shares of a private corporation, general partnership, or limited liability company interests held in trust will be defined as an employee. This person may choose to waive coverage if they meet the criteria for exclusion.
- An officer or member of the board of directors, if they meet the definition of employee, may choose to waive coverage in one of two circumstances:
- They own at least 10% of the corporation’s stock.
- They own at least 1% of the stock, a relative (parent, grandparent, sibling, spouse, or child) owns at least 10% of the stock, and they are covered by a health insurance policy or health care plan.
- An officer or member of the board of directors of a cooperative corporation may choose to waive coverage if they are covered by a health insurance policy or health care plan, as well as a disability insurance policy that covers the same scope as a workers’ compensation policy.
- An officer or director of a private corporation, who is also the sole shareholder of said corporation, is not defined as an employee, but may choose to be subject to liability for workers’ compensation.
- An owner of a private professional corporation, who is also the sole shareholder of said corporation, is not defined as an employee, but may choose to be subject to liability for workers’ compensation.
- A general partner of a partnership or a managing member of a limited liability company may choose to waive coverage.
- An owner of a professional corporation may choose to waive coverage if they are covered by a health insurance policy or health care plan.
Please let us know if you have questions about how Senate Bill 189 might affect your workers’ compensation policies.