AN
ACT Relating to workers' compensation coverage for a member or manager of a
limited liability company; and amending RCW 51.12.020.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
51.12.020 and 1997 c 314 s 18 are each amended to read as follows:
The
following are the only employments which shall not be included within the
mandatory coverage of this title:
(1)
Any person employed as a domestic servant in a private home by an employer who
has less than two employees regularly employed forty or more hours a week in
such employment.
(2)
Any person employed to do gardening, maintenance, or repair, in or about the
private home of the employer. For the purposes of this subsection,
"maintenance" means the work of keeping in proper condition,
"repair" means to restore to sound condition after damage, and
"private home" means a person's place of residence.
(3)
A person whose employment is not in the course of the trade, business, or
profession of his or her employer and is not in or about the private home of
the employer.
(4)
Any person performing services in return for aid or sustenance only, received
from any religious or charitable organization.
(5)
Sole proprietors or partners.
(6)
Any child under eighteen years of age employed by his or her parent or parents
in agricultural activities on the family farm.
(7)
Jockeys while participating in or preparing horses for race meets licensed by
the Washington horse racing commission pursuant to chapter 67.16 RCW.
(8)(a)
Except as otherwise provided in (b) of this subsection, any bona fide officer
of a corporation voluntarily elected or voluntarily appointed in accordance
with the articles of incorporation or bylaws of the corporation, who at all
times during the period involved is also a bona fide director, and who is also
a shareholder of the corporation. Only such officers who exercise substantial
control in the daily management of the corporation and whose primary
responsibilities do not include the performance of manual labor are included
within this subsection.
(b)
Alternatively, a corporation that is not a "public company" as
defined in RCW 23B.01.400(((20))) (21) may exempt eight or fewer
bona fide officers, who are voluntarily elected or voluntarily appointed in
accordance with the articles of incorporation or bylaws of the corporation and
who exercise substantial control in the daily management of the corporation,
from coverage under this title without regard to the officers' performance of
manual labor if the exempted officer is a shareholder of the corporation, or
may exempt any number of officers if all the exempted officers are related by
blood within the third degree or marriage. If a corporation that is not a
"public company" elects to be covered under subsection (8)(a) of this
section, the corporation's election must be made on a form prescribed by the
department and under such reasonable rules as the department may adopt.
(c)
Determinations respecting the status of persons performing services for a
corporation shall be made, in part, by reference to Title 23B RCW and to
compliance by the corporation with its own articles of incorporation and
bylaws. For the purpose of determining coverage under this title, substance
shall control over form, and mandatory coverage under this title shall extend
to all workers of this state, regardless of honorary titles conferred upon
those actually serving as workers.
(d)
A corporation may elect to cover officers who are exempted by this subsection
in the manner provided by RCW 51.12.110.
(9)
Services rendered by a musician or entertainer under a contract with a
purchaser of the services, for a specific engagement or engagements when such
musician or entertainer performs no other duties for the purchaser and is not
regularly and continuously employed by the purchaser. A purchaser does not
include the leader of a group or recognized entity who employs other than on a
casual basis musicians or entertainers.
(10)
Services performed by a newspaper carrier selling or distributing newspapers on
the street or from house to house.
(11)
Services performed by an insurance agent, insurance broker, or insurance
solicitor, as defined in RCW 48.17.010, 48.17.020, and 48.17.030, respectively.
(12)
Services performed by a booth renter as defined in RCW 18.16.020. However, a
person exempted under this subsection may elect coverage under RCW 51.32.030.
(13)
Members of a limited liability company, if either:
(a)
Management of the company is vested in its members, and the members for whom
exemption is sought would qualify for exemption under subsection (5) of this
section were the company a sole proprietorship or partnership; or
(b)
Management of the company is vested in one or more managers, and the members
for whom the exemption is sought are managers who would qualify for exemption
under subsection (8) of this section were the company a corporation.
