2017 - Upcoming Changes to Worker's Compensation Policies



11.20.16



New CA Law Changes Inclusion / Exclusion of Officers for Workers’ Compensation Coverage. Effective January 1, 2017, California Assembly Bill 2883 changes who may be excluded from workers’ compensation coverage and the process for excluding them.





The law specifies that:

  1. Paid officers and members, boards of directors of quasi-public or private corporations must own at least 15% of the corporation’s stock to opt out. A signed waiver, verifying eligibility for the exemption, is required.
  2. A general partner of a partnership or managing member of a limited liability company (LLC) must sign a waiver to opt out.

The change is applicable to all in-force, new and renewal policies. Waivers of coverage are effective upon the insurance carrier’s date of receipt and acceptance