New Year, New Workers’ Comp “Opt Out” Rule For Execs

As a general rule, California employers must provide employees with workers’ compensation insurance coverage for work-related and industrial injuries and illnesses. Until now, the definition of “employee” has included paid corporate officers and directors, but has excluded corporate officers and directors who are the sole shareholders and has excluded working members of a partnership or limited liability company (“LLC”). These folks were not considered employees unless they “opted in” to workers’ compensation coverage.

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