The Workers’ Compensation Law for Sole Proprietors, Partners and LLC Members
The New Jersey Compensation Rating and Inspection Bureau have always seen LLC member and executives from corporations as equal. Therefore, sole proprietors and partners were treated the same as employees from limited liability companies, and it is mandatory for them to have workers’ compensation coverage.
Sole proprietors, partners and LLC members were considered as employers rather than as employees. They did not have the option to obtain workers’ compensation coverage, but this was all before April 13, 2000.
Effective since April 13, 2000, Chapter 383, P.L. allowed LLC members to elect coverage, the same as sole proprietors and partners instead of being subjected to the mandatory coverage. It has given sole proprietors and partners the opportunity to purchase their own workers’ compensation, and LLC members were placed in a similar category, as well.
The Guidelines on Electing for Coverage