Regulatory Changes

California Assembly Bill, AB 5 - Independent Contractors
Assembly Bill AB 5 creates a presumption that an entity's workers are employees unless the hiring entity can show that the worker meets three conditions, known as the "ABC Test." AB 5 goes into effect on July 1, 2020, and applies to policies issued on or after July 1, 2020, as well as policies in force as of July 1, 2020. Click here for the WCIRB Policyholder Notice for more information regarding AB 5 and its impact on your insurance.

California Senate Bill 189 (AB 2883)

Senate Bill 189 changed California Labor Code Sections 3351 and 3352 allowing eligible corporate and cooperative officers and directors, general partners, limited liability company (LLC) members, owners of professional corporations and trustees to waive workers’ compensation coverage for themselves under specific conditions. 

Policyholder Instructions on SB 189 describes the specific statutory requirements to waive workers’ compensation coverage. 

Waiver of Coverage Forms

Corporate Officer or Member of Board of Directors Waiver
General Partners and Limited Liability Company Managing Members Waiver
Trustee with the Power to Revoke Waiver
Cooperative Corporation Officer or Board Member Waiver
Owner of Professional Corporation Waiver

For more information, go to California Department of Insurance www.insurance.ca.gov  or email workcompquestions@insurance.ca.gov.