The California Insurance Commissioner has determined that Assembly Bill 2883, effective January 1, 2017 applies to all new, renewal or existing policies. This legislation changes the definition of employees with respect to who is allowed to be excluded from workers’ compensation coverage as an officer of a corporation, member of boards of directors, general partnerships and limited liability companies. These changes summarized below amend sections 3351 and 3352 of the California Labor Code. If either of the below types of business ownerships applies to your insureds, please read carefully and assist your client in executing the appropriate waiver form for officers/directors or general partners/managing members that elect to be excluded from coverage. Any qualifying officer or director, general partner or managing member that does not execute a valid waiver is considered an employee, their payroll will be included for coverage and the insured may be subject to additional premium at final audit.
