This Movers Choice Program Bulletin is to notify you of an upcoming change to California Workers’ Compensation Law due to the enactment of Assembly Bill 2883 (AB 2883) which will take effect on January 1, 2017.
AB 2883 clarifies who may be excluded from workers’ compensation coverage and the method by which an individual may be excluded. The provisions of this change are applicable to all in-force policies effective January 1, 2017 and specifically apply to officers and members of boards of directors while rendering actual service for the corporation for pay and working members of a partnership or limited liability company receiving wages irrespective of profits from the partnership or limited liability company.
Beginning January 1, 2017, in order for any of these individuals to be excluded from coverage the following requirements must be met:
- Corporations: An officer or member of the board of directors must own at least 15% of the outstanding stock of the corporation and must sign a written waiver of workers’ compensation benefits under penalty of perjury that he or she is a qualifying officer or director.
- Partnerships/LLCs: For general partners of a general partnership and managing members of a limited liability company, the individual must sign a written waiver of workers’ compensation benefits under penalty of perjury that he or she is a qualifying general partner or managing member.
If your policy contains an exclusion that is subject to this change in law, you will be provided the new waiver form. To maintain this existing exclusion without interruption, each individual who is eligible to be excluded must complete, sign and return the waiver to us as soon as possible but no later than December 20, 2016. This form becomes effective when received and accepted by AmTrust and will remain in effect until the individual provides with a written withdraw of the waiver.
A waiver form will be provided directly by AmTrust to you, for your convenience. It may be photocopied if additional copies are needed. Please return the completed and signed waiver(s) to AmTrust directly.