Insurance & LiensQuestion 109 of 1605
A corporate officer of a corporation may be excluded from workers' compensation coverage if:
a.The corporation has fewer than 5 employees
b.The officer's salary exceeds $100,000 per year
c.The officer is also the sole shareholder
d.The officer properly elects exclusion in writing and files the required form
Explanation
Corporate officers may elect to exclude themselves from workers' comp coverage by completing the required exclusion form (Labor Code §3352); the election must be made in writing and kept on file. Keep this separate from the CSLB rule that a licensed contractor must CARRY a workers'-comp policy (B&P §7125): SB 216 is phasing that must-carry mandate in to all license classifications by 1/1/2028 (extended by SB 1455), but an officer's ability to waive coverage for THEMSELVES under §3352 is unchanged — the two are different questions.
Law Reference: Labor Code §3351Practice all 1605 questions free — no signup required.
Related questions on this topic
- While a workers' compensation claim is being investigated, the employer must authorize up to how much in medical treatment?
- Which of the following best describes "temporary total disability" (TTD) benefits in California WC?
- A "permanent and stationary" (P&S) status in workers' compensation means:
- What penalty may an employer face for not posting the required workers' compensation notice in the workplace?
- Under California workers' compensation, which body system injury typically qualifies for a vocational rehabilitation benefit?
- The "exclusive remedy" doctrine in workers' compensation means:
Last reviewed: · editorial process
Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)