Read about New Labor Law with Workers Compensation Repercussions
On August 26, Governor Brown signed a new law (AB 2883) into effect that limits how certain individuals can be excluded from coverage on a workersâ' compensation insurance policy. Details of this new law have just emerged and insurers are now determining how they will apply it to existing policies.
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 all will be required to sign a waiver where they have not had to do so in the past.
For help finding the right policies, or if you have any questions,Â
contact the professionals atÂ
Cook, Disharoon & Greathouse, Inc. Located in California, we serve all your personal and commercial insurance needs.
