Are executive officers or directors of the company covered under its workers' compensation policy?
Generally, all employees of the company, as legally defined, including corporate officers and directors, must be included in the policy unless they are the sole owners of the firm. In the case of sole owners, they may elect not to be covered. Several sections of the California Labor Code must be considered to answer this question. You should consult with your attorney, insurance agent or broker, or your carrier regarding the specifics of your situation.
When covered, executive officers, directors, partners, and members of limited liability companies are each subject to minimum and maximum annual payroll amounts for workers compensation statistical reporting (and, usually, premium calculation) purposes –
regardless of how much or little they actually make
. Effective January 1, 2014, the minimum is $42,900 and the maximum is $109,200.