Sole Proprietors can generally submit a signed affidavit that they are not required under state law to have workers’ compensation insurance. It would be a good idea to get an individual or small group health insurance plan for 24/7 coverage.
Sample Worker’s Compensation Waiver Form
San Diego City Attorney
A. Generally, if you are the sole owners of the business, coverage for yourselves, is optional if you wish to pursue it. You would need to have workers’ compensation coverage for any employees you may hire. You should consult with your attorney, insurance agent or broker, or carrier regarding the specifics of you situation and your options.
What is an Independent or sub Contractor?
Use this worksheet is to be used by the proprietor of a business to determine whether a worker is most likely an employee or an independent contractor.
CA EDD – DE 387 Pages
View our main page on 1099 vs Employee
California Labor Code Section 3351, partners and corporate officers, or members of boards of directors are employees for Workers’ Compensation purposes except under limited circumstances.
In order for individuals holding the above-mentioned positions to fall outside the Workers’ Compensation laws, they must be shareholders of the corporation, and all stock of the corporation must be held by persons who are either officers or members of the board of directors of the corporation.
Blue Cross Employer Application Question # 12
Can you ever go without workers’ compensation insurance
The short answer is NO.
Sole business owners are not required to have coverage but may get it for themselves alone, if an insurer is willing to provide it. Business partners or corporate officers must be covered in some cases. Source – CA Employers Guide to Worker’s Comp. Page 13
“In the course of” means that the injury must occur at work and during work hours. For example, an injury that occurs during the work day while the employee is crossing the street to buy a donut as a personal snack is probably not compensable. Activities that are completely non-work-related are also outside the course of employment even if they occur at work. These include horseplay, violation of company rules, or a non-work-related dispute (e.g., a fight at work over a girlfriend). (rkmlegal.com)
State of CA Background Paper on Causation Points out that Labor Code 3600 excludes initial aggressor of physical altercation and requires service in the course of employment and proximately caused by the employment Mathews v Worker’s Compensation Bureau deals with constitutional issues and that the initial aggressor only has to commit assault, not battery.
The Taneka Talley Case – When Does Injury or Death “Arise” Out of Employment? lexisnexis.com/ Transactron v Worker’s Comp Appeals Board Job duties must contribute to the danger.
Conway v Gobin – Compensation denied where injuries are the result of personal grievances, unconnected with employment.
Globe v Industrial Accident – Marmurowicz v Miss Marshall – argument about preparing the ice cream in a restaurant – arose out of employment, thus compensable, no clear cut aggressor, if personal grievance not related to employment, no compensation.
O’Conner Brothers – Hull – Aggressor get’s paid, unless it’s willful & serious Labor Code 4551 and even then one get’s paid 1/2
FAQ for Employers
Main Workers Compensation, Child & Related Pages
- Domestic Workers
- Self Employed – Covered by Health Insurance?
- Who must be included – who can be excluded
- Links & Resources
- Technical & Actual Law