ARIZONA HOUSE OF REPRESENTATIVES

HB 2047: workers' compensation; employee definition; LLCs

PRIME SPONSOR: Representative Livingston, LD 22

BILL STATUS: Chaptered

Abstract

Relating 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 more than 50% 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. Adds working shareholders who own less than 50% of the beneficial interest in a corporation to the definition of employee. (Sec. 1)

4. Allows working shareholders who own more than 50% of the beneficial interest in a corporation to be deemed as an employee and sets the basis for computing wages and compensation benefits. (Sec. 1)

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

6. Contains an applicability clause. (Sec. 2)

7. 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 5: Chaptered

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