An Act To Amend Title 19 Of The Delaware Code Relating To Workers Compensation
The legislative amendment is expected to have a significant impact on how LLCs operate within the state. By facilitating a higher number of exempted individuals, the bill may encourage more entrepreneurs to establish LLCs, potentially leading to increased business formation. This move is perceived positively by supporters who argue that it reduces the financial burdens associated with workers' compensation insurance for small businesses, thereby enhancing their competitiveness and sustainability.
House Bill 144 proposes an amendment to Title 19 of the Delaware Code concerning workers' compensation. The primary aim of the bill is to increase the number of members of a limited liability company (LLC) eligible for exemption from workers' compensation reimbursement from four to eight. This change aligns the exemption criteria for LLC members with those for corporate officers in traditional corporations, also allowing up to eight officers who are stockholders to be exempt under the same conditions.
Overall sentiment surrounding HB 144 has been largely favorable, particularly among business owners and proponents of reduced regulatory burdens. There is a recognition of the need for more flexible frameworks within which small businesses can thrive. However, some concerns were raised about the implications of exemptions for employee protections and whether increasing the cap might undermine the purpose of workers’ compensation, which is designed to protect workers in the event of workplace injuries.
Yet, the bill did not face significant opposition during its discussions, as evidenced by its unanimous support during the voting phase, where it received 20 'yeas' with no 'nays.' This lack of contention may indicate a relative consensus on the proposed changes or a prioritization of business interests in the current legislative climate.