SB 189, which became effective January 1, 2018 made changes to the definition of an employee and exclusions from the definition of an employee as set forth in the Labor Code. Certain provisions of this law go into effect on July 1, 2018. The provisions apply at the renewal of your current worker’s compensation policy, on or after July 1, 2018. If you do not currently have a worker’s compensation policy, they apply on July 1, 2018.
How does this affect your business?
- This applies to Corporate officers and members of board or directors who own 10% OR owns at least 1% of the stock if his/her parent, grandparent, sibling, spouse or child owns at least 10% and is covered by a health insurance policy and a disability insurance policy that is comparable in scope of worker’s compensation disabiity. These individuals can elect to be excluded by signing a waiver.
- If you own less than 10% you must be included for worker’s compensation coverage.
- If you are a Sole Shareholder of a private corporation you can elect to be excluded by signing a waiver stating they are covered by a health insurance policy and a disability policy that is similar in scope of worker’s compensation disability.
- General Partner or Managing Members of a Limited Liability Company may elect to be excluded, by signing a waiver.
- Professional Corporations, as defined by the Corporations Code, section 13401, may waive coverage by stating they are covered by a health insurance policy and a disability policy that is comparable in scope of worker’s compensation disability.
We have sample waiver forms available if needed. If you have any questions or concerns please call our office at 925-827-0510.