Certain business owners may elect to exclude themselves from workers' compensation insurance coverage. This applies to officers of a closely held corporation, sole proprietors, general partners, and member-managers of limited liability companies. California Labor Code (§ 3351) governs the inclusion or exclusion of these individuals. If you have questions concerning these exclusions, consult your insurance professional or legal advisor.
When these business owners, corporate officers, and officers of limited liability companies are subject to workers' compensation coverage, the annual payroll used for premium computation is subject to minimum and maximum limitations. For the current minimum and maximums, see Part 3, Section V, Rule(j) of the California Workers' Compensation Uniform Statistical Reporting Plan - 1995. These limits are subject to annual adjustments.
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