State SealARIZONA HOUSE OF REPRESENTATIVES

 

HB 2047: workers' compensation; employee definition; LLCs

PRIME SPONSOR: Representative Livingston, LD 22

BILL STATUS: Banking & Insurance

 

Legend: LLC – Limited Liability Company Amendments – BOLD and Stricken (Committee)

Abstract

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteRelating to workers' compensation.

Provisions

1.       Adds working members who own less than 50% of the membership interest in an LLC to the definition of employee. (Sec. 1)

2.       Allows working members who own 50% or more of the membership interest in an LLC to be deemed as an employee and sets the basis for computing wages and compensation benefits. (Sec. 1)

3.       Cites this act as the "Allow Limited Liability Companies to Opt In to Workers' Compensation (ALLOW) Act. (Sec. 2)

4.       Makes technical changes. (Sec. 1)

Current Law

Businesses that regularly employ workers must obtain workers' compensation insurance. Employers must secure workers' compensation in one of two ways:

a.       By maintaining a workers' compensation insurance policy with an insurance carrier, or

b.       By providing proof of the ability to pay compensation directly or through a workers' compensation pool (A.R.S. § 23-961).

Workers' compensation is a "no-fault" system in which an injured employee is entitled to receive benefits for an industrial injury, no matter who caused the job-related accident.

 

 

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Fifty-third Legislature                  HB 2047

Second Regular Session                               Version 1: Banking & Insurance

 

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