Introduced by Representatives Flory of Pittsford, Errecart of Shelburne and Reese of Pomfret
Subject: Labor; workers’ compensation; exclusion from coverage
Statement of purpose: This bill proposes that members and managers of limited liability companies (L.L.C.s) may exclude themselves from workers’ compensation coverage upon affirmative election and approval of the commissioner.
AN ACT RELATING TO WORKERS' COMPENSATION COVERAGE FOR MEMBERS AND MANAGERS OF LIMITED LIABILITY COMPANIES
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 21 V.S.A. § 601(14)(H) is amended to read:
executive officer elected or appointed and empowered in accordance with the
bylaws of the corporation shall be an employee of the corporation. With the
approval of the commissioner, an officer may elect not to come under the
provisions of this chapter and if all officers of the corporation make such
election and the corporation has no employees, the corporation shall not be
required to purchase workers' compensation coverage The individual
officers of a corporation and the individual managers or members of a limited
liability corporation by affirmatively electing exclusion from coverage and
obtaining the approval of the commissioner. If after election, the officer
excluded individual suffers a personal injury and files a claim under
this chapter, the employer shall have all the defenses available in a personal
injury claim. However, this election shall not prevent any other individual,
other than the executive officer excluded individual, found to be
an employee of the corporation business to recover workers'
compensation from either the corporation or the statutory employer.
The Vermont General Assembly
115 State Street