Lower Threshold for Corporate Officer Exemption Takes Effect in New Year

Corporate officers with an ownership stake of 10% or more will be able to opt out of workers’ compensation coverage for themselves, under a law that will take effect in the new year. Senate Bill 189, by Sen. Steven Bradford, D-Gardena, lowers the ownership threshold for opting out of coverage to 10%, from a current 15%, effective July 1. The exemption from workers’ comp coverage will also apply to an officer or member of the board of directors who owns at least 1% of the issued and outstanding stock of the corporation if he or she has a parent, grandparent, sibling, spou...