Certain business owners may elect to exclude themselves from workers' compensation insurance coverage. This applies to officers who meet the statutory requirements and members of boards of directors who own at least 15% of the issued or outstanding stock of the corporation, general partners and managing members of limited liability companies.
California Labor Code (Sections 3351 and 3352) governs the exclusion of these individuals. In order to be excluded, the individual must execute a written waiver of his or her rights under the Labor Code. The California Department of Insurance has published sample waiver forms. If you have questions concerning these exclusions, please consult your insurance professional or legal advisor.
When the above individuals are subject to workers' compensation coverage, the annual payroll used for premium computation is subject to minimum and maximum limitations. For the current minimums and maximums, see Part 3, Section V, Rule 1(j) of the California Workers' Compensation Uniform Statistical Reporting Plan—1995. These limits are subject to annual adjustments.
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