California is currently experiencing its driest year on record, at 20 percent of normal average rainfall for this time of the year, despite recent wet weather.
AB 2883, was signed into law by the Governor in August 2016. AB2883 changes the definition of “employee” in Labor Code Section 3351 and the changes the eligibility criteria in Labor Codes 3352 for officers of corporations, general partners of partnerships and managing members of limited liability companies to elect exclusion from workers’ compensation coverage. This significant change takes effect January 1, 2017 and affects the insurance coverage and premiums on many current and future workers’ compensation policies.
AB 2883 requires action by impacted policyholders as soon as possible in order to ensure compliance by January 1, 2017 with the changes in the Labor Code.
Summary of AB 2883 and What the Law Means to Employers
Beginning in January, all workers’ compensation insurance policies will be required to cover certain Officers and Directors of private or quasi-public Corporations, and working members of Partnerships and Limited Liability Companies that may have been previously excluded from coverage.
Under AB 2883, the following changes take place on January 1, 2017, regardless of the inception date of your workers’ compensation policy.
AB 2883 – with regard to Corporations:
AB 2883 – with regard to Partnerships and Limited Liability Companies (LLCs):
Below are samples of the Policyholder Notices that we mailed:
Policyholder Notice/Package - CORPORATIONS
Policyholder Notice/Package - PARTNERSHIPS
Policyholder Notice/Package - LLCs
Policyholder Notice/Package - MULTIPLE ENTITIES
To ensure we are able to process changes correctly, we have asked policyholders to scan and email their responses back to State Fund as a single package to WaiverForm@scif.com.
For those policyholders who wish to send responses by USPS mail, please send to: Waiver Response Team, PO Box 969000, Vacaville CA 95696-9000.
As indicated in the Notice, all signed Waiver Forms and information requested must be received by State Fund by December 31, 2016.
If you have any questions after reviewing the notice/package you received, please contact your broker or contact a State Fund Representative toll free at 1-888-STATEFUND (1-888-782-8338).
The notices we sent policyholders contained information specific to their individual policies, as well as an AB 2883 Compliance Guide, which provides a comprehensive explanation of all responses we may need from them. Please review the Policyholder Notices.
Below are some of the individual components of the Policyholder Notices (blank Waiver Forms and Coverage Questionnaire):
Waiver Form e10280 - CORPORATE OFFICERS AND DIRECTORS - AB 2883 Compliant
Waiver Form e10281 - GENERAL PARTNERS - AB 2883 Compliant
Waiver Form e10282 - LLC MANAGING MEMBERS - AB 2883 Compliant
Coverage Questionnaire for Included Officers - e10283