Workers’ compensation: definition of employee.
The passage of SB 189 directly influences the employees' rights under workers compensation laws by allowing certain corporate officers and members of boards to waive their rights to incidental coverage if they meet specific criteria. By lowering the ownership stakes required for this waiver—from 15% to 10% or even 1% under particular familial conditions—SB 189 facilitates more corporate officers and directors in opting out of these mandatory insurance coverages, thereby altering the landscape of corporate liability and responsibility in California.
Senate Bill 189, sponsored by Senator Bradford, modifies the definition of an employee within California's workers compensation system. This bill amends several sections of the Labor Code to broaden the scope of who qualifies for the worker's compensation exemption. Specifically, it adjusts the ownership percentages for corporate officers and introduces new definitions related to professional corporations and cooperative corporations. The intention behind these amendments is to enhance flexibility for individuals associated with corporations regarding their worker's compensation rights.
The sentiment surrounding SB 189 appears generally supportive from business circles, particularly emphasizing the need for business owners and officers to have more control over their insurance choices. However, concerns have been raised regarding the protection and implications for employees, as broader exemptions could potentially reduce the accountability of corporate leaders in terms of workplace safety and employee welfare. The results reflect a notable division between legislative proponents for economic flexibility and labor advocates who fear potential exploitation.
While the bill does receive majority support, there are points of contention regarding the implications for employees who might be harmed due to the waivers allowed under this bill. Critics argue that it may lead to a system where corporate officers opt out of essential protections that safeguard employees' rights to compensation for injuries sustained at work. The legislation's language surrounding waivers and definitions leaves room for debate over whether such changes adequately serve the public interest, especially in sectors where employee safety should be a priority.