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S.297

Introduced by   Senator Illuzzi of Essex-Orleans District

Referred to Committee on

Date:

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:

(H)  Any 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.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us