The bill amends the Worker's Disability Compensation Act of 1969, specifically section 161, to clarify the definition of "employee" and the conditions under which various individuals are considered employees for worker's compensation purposes. Key insertions include the inclusion of individuals in service to state or local governments, on-call members of fire departments, and volunteers such as safety patrol officers and civil defense workers as employees entitled to benefits if injured while performing their duties, regardless of their paid or unpaid status. The bill also introduces new language regarding compensation rates, stating that individuals are to be considered as receiving the state average weekly wage at the time of injury unless their average weekly wage is higher, and establishes criteria for distinguishing between employees and independent contractors based on control and direction in the employment relationship.

Additionally, the bill introduces amendments concerning exclusions from employee status for certain individuals, allowing worker's compensation insurance policies to exclude coverage for named partners or family members of the employer. It provides provisions for employees of limited liability companies (LLCs) and small corporations to elect exclusion from the act if they meet specific criteria, such as owning at least a 10% interest in the company. Key changes include replacing "shall" with "is not" to clarify the status of excluded individuals and adjusting ownership language from "at least" to "not less than." The bill also stipulates that exclusions remain in effect until revoked and outlines the process for submitting written notice of exclusion, ultimately aiming to offer more flexibility for small business owners and their families regarding worker's compensation coverage.

Statutes affected:
House Introduced Bill: 418.161