Opening a small new business that is NOT liable for workers comp at this time, there is a question on the application about wanting to voluntarily pay worker's comp anyway... It that a trick question or what ? Is there an advantage to volunteering to pay now ?
A few questions so that someone might be able to help.
What state are you in? How many employees? Are you a sole proprietor, partner, LLC?
Just a guess, but it may be Minnesota??? (mn in the username)
Possible, but I don't want to assume. And still need the other info.
We are a new business in LA. I have a question as well. In order for my husband to apply for the commercial and residential builder's licenses, we had to have worker's comp. Now we are getting to the building phase of our rental houses and the worker's comp is through the roof. We are located in the country. We have a sole proprietor who owns his own equipment come in and haul materials and build a road. He, as a sole prop. in LA can elect not to carry work.comp. which leaves us liable and having to carry it for the labor hours that he works for us. He showed us a form that he signed for another co. that he worked for which is notarized. It states (as LA law says) that he as a sole prop. elects not to carry WC and he elects not to be subject to the provisions of the LA Worker's Comp Act while performing services for us. I can not find anyone to tell me if this is worth the paper it is written on. All my research is telling me no so why did this company have him sign this? Has anyone ever heard of this?
Not sure about Louisiana, but some states do allow for small or single person companies to be exempt. Of course, he does not have to work for you, either. In some places that allow the exemption people still are required to get insurance by the company who hires them. Seems you have a choice. Pay the bill for him, or use somebody else.
These issues are best discussed with your work comp carrier.
sounds like the other company your sole proprieter worked for had a deal with their comp carrier so they didn't have to pay premium on the proprieters wages as long as they had an official looking paper.
I suspect the LA dept of Insurance would like know about that.
Thanks for the input. Yes, because we chose to hire him (hard to find someone you can trust and work with) we made the choice to pay the work. comp. on him. I just find it unfair that when someone elects not to carry work. comp. and they realize the risk that they are taking, then it is unfair to ask another small business to pick up this very expensive tab. And I do realize that we could choose not to have him work for us. I am just exploring this non-election paper until I am satisfied that it is/is not legit. Also, the second reply gave me another avenue to explore: The LA dept. of insurance. Doing that now. Thanks.
I agree about fraud. That is why I am exploring this. The guy we hired is also a friend and I think he needs to know what the paper represents as well. Thanks.