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Question of the Month

Workers compensation is usually thought of as a compensation system for employees who are injured in the course of employment. However, a key question pertaining to this compensation system is: who is an employee? In most instances, the answer is rather obvious. But, when the person injured is an executive officer or a partner, the situation can cause more questions to arise.

The workers compensation system is a system subject to the laws and regulations of the individual states. So, how do the states treat executive officers, partners and even sole proprietors when they happen to get injured on the job? Some states allow these classes of workers to be exempt from the WC laws, while other states make them subject to the provisions of the WC laws. It just makes sound business sense for insureds and their agents to know whether the officers of a corporation, or the partners in a partnership, or sole proprietors can be covered under the workers compensation system of the state in which they operate. For a state-by-state summary of whether executive officers, partners, and sole proprietors are subject to the state workers comp law, see Workers Compensation for Executive Officers, Partners, and Sole Proprietors. The information can be found in the Workers Comp M.6 pages.

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