2014 Kentucky Revised Statutes
CHAPTER 342 - WORKERS' COMPENSATION
342.012 Business owners -- Election to be included as employees -- Qualified partners and members, nonqualified partners and members, and limited liability company defined -- Provision of partnership agreement or articles of organization upon request.
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<![CDATA[342.012 Business owners -- Election to be included as employees -- Qualified
partners and members, nonqualified partners and members, and limited
liability company defined -- Provision of partnership agreement or articles
of organization upon request.
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For the purposes of this chapter, an owner or owners of a business, including
qualified partners of a partnership owning a business, or qualified members of
a limited liability company, whether or not employing any other person to
perform a service for hire, shall be included within the meaning of the term
employee if the owner, owners, qualified partners, or qualified members of a
limited liability company elect to come under the provisions of this chapter and
provide the insurance required thereunder. Nothing in this section shall be
construed to limit the responsibilities of the owners, partners, or members of a
limited liability company to provide coverage for their employees, nonqualified
partners, or nonqualified members, if any, required under this chapter.
When an owner, owners, qualified partners, or qualified members of a limited
liability company have elected to be included as employees, this inclusion shall
be accomplished by the issuance of an appropriate endorsement to a workers'
compensation insurance policy.
For the purpose of this section, "qualified partner" or "qualified member or
members" means, respectively, a partner who has entered into a meaningful
partnership agreement or a member who has entered into meaningful articles
of organization or a meaningful operating agreement of a limited liability
company, which document shows on its face that the partner will substantially
participate in the profit or loss of the business engaged in by the partnership or
limited liability company and that the partner or member has made some
contribution to the partnership or limited liability company which entitles him or
her to participate in the profits of the business as well as to participate in the
decision-making process of the partnership or limited liability company.
For the purposes of this section, "nonqualified partner" or "nonqualified
member" means, respectively, a person who has entered into a partnership
agreement, or articles of organization or operating agreement of a limited
liability company, which document shows on its face that this person will
receive regular payments in exchange for work for the business engaged in by
the partnership or limited liability company; that the person will not participate in
the decision-making of the partnership or limited liability company and will not
participate in the profits and losses of the business engaged in by the
partnership or limited liability company.
Every partnership and limited liability company shall provide, upon the request
of the commissioner or his or her representative, a copy of its partnership
agreement or articles of organization for purposes of demonstrating
compliance with this section and KRS 342.340. With particular reference to
employers engaged in coal mining, the commissioner shall promptly report the
failure to comply with the provisions of this subsection to the Energy and
Environment Cabinet, Department for Natural Resources, Office of Mine Safety
and Licensing, so that appropriate action may be undertaken pursuant to KRS
351.175.
For purposes of this section, a "limited liability company" means an entity
defined in KRS 275.015 and organized under the provisions of KRS Chapter
275.
Effective:July 15, 2014
History: Amended 2014 Ky. Acts ch. 16, sec. 1, effective July 15, 2014. -Amended 2010 Ky. Acts ch. 24, sec. 1779, effective July 15, 2010. -- Amended
2005 Ky. Acts ch. 123, sec. 43, effective June 20, 2005. -- Amended 1998 Ky.
Acts ch. 341, sec. 45, effective July 15, 1998. -- Amended 1996 Ky. Acts ch.
332, sec. 1, effective July 15, 1996. -- Amended 1994 Ky. Acts ch. 181, Part 14,
sec. 67, effective April 4, 1994. -- Amended 1990 Ky. Acts ch. 20, sec. 1,
effective July 13, 1990. -- Amended 1987 (1st Extra. Sess.) Ky. Acts ch. 1, sec.
4, effective October 26, 1987. -- Created 1976 Ky. Acts ch. 219, sec. 1.
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