VAZQUEZ HELDMAN
  • Home
  • Areas of Practice
    • Business Law & Litigation
    • Construction, Real Estate & Development
    • Healthcare and Pharmacy Law
    • Wills, Trusts, Estates and Administration
  • Contact
  • Blog and Legal Updates

Legal Updates

Absent Election, No Workers Compensation Coverage for Owner of LLC

1/29/2022

 
In New Jersey, members of a limited liability company who actively perform services on behalf of the company are deemed to be employees of the company for purposes of receipt of benefits and payment of workers' compensation insurance, but only if the company elects to purchase such coverage when the policy is purchased or renewed.  This election may only be made at purchase or at renewal and may not be withdrawn during the policy term.  Further, if there are multiple partners in the company, they all must either opt in or opt out.  While many owners of LLCs do not elect to purchase workers compensation coverage for themselves, where a small to mid-size construction or manufacturing company is involved,  they should consider doing so since the owners are often also in the field or on the manufacturing floor.

In a recent unpublished decision from the Appellate Division, an owner of a millwork company was struck by a steel rod, causing leg, knee and back injuries.  However, despite the incident occurring in conjunction with the manufacturing of millwork, workers compensation benefits were denied due to the fact that the owners did not elect to include themselves on the workers compensation policy.  Although they claimed to have asked for such coverage, and blamed their broker for filing out the form incorrectly, the Appellate Division still found that was insufficient to create liability for the insurance company where the application clearly indicated no coverage for the owners. (Kearton v. E.W. Millwork LLC)

Comments are closed.

    Authors

    Peter J. Vazquez, Jr.
    Jeffrey Heldman

    Archives

    March 2023
    February 2023
    January 2023
    December 2022
    August 2022
    April 2022
    March 2022
    February 2022
    January 2022
    July 2021
    April 2021
    March 2021
    February 2021
    December 2020
    June 2020
    May 2020
    April 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019

    Categories

    All
    Business Law
    Construction Law
    Consumer Fraud Act
    Healthcare Law
    Land Use & Zoning
    Real Estate Law

    RSS Feed

Peter J. Vazquez, Jr.
pvazquez@vazquezfirm.com

Office Phone
973-434-7062

Jeffrey Heldman
jheldman@vazquezfirm.com

​Copyright © 2017-2023    ​
  • Home
  • Areas of Practice
    • Business Law & Litigation
    • Construction, Real Estate & Development
    • Healthcare and Pharmacy Law
    • Wills, Trusts, Estates and Administration
  • Contact
  • Blog and Legal Updates