Legal Question in Business Law in California

No. No one can be made a partner in a business without their agreement.

The other attorney is right on point. You can contact the state's Employment Development Department and Workers Comp. State Fund to let them know what's happened. They will investigate. Consult with a good business attorney in your area for specific advice.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

Waaaait a minute! I'm not so sure the previous answers are right. Being a partner in a general partnership is not so much a matter of consent as it is a matter of fact. People frequently become partners without intending to, just because they do the things that partnership law says forms a partnership. Corporations Code section 16202(a), a part of the Revised Uniform Partnership Act, says "....... the association of two or more persons to carry on as coowners a business for profit forms a partnership, whether or not the persons intend to form a partnership." You might ask you supposed "partners" what is the extent of your co-ownership. 1%? 10%? 51%?.

Partnership law also contains a provision allowing a person who has been named as a partner in a filed statement of partnership authority to file a written denial that he or she is a partner - see Corporations Code section 16304.

There's another aspect of this caper that doesn't compute. I'm not 100% sure about this, I don't practice in the workers' comp. area, but many years ago when I was running a small business in California, the co-owner and I took ourselves off workers' comp. under the rule allowing owners to opt out - BUT in order to do so, we had to sign forms acknowledging that we were making such an election. I think the forms were printed, furnished and required by our insurance company, not the state government, but this is an area that you can quiz your "partners" about, or maybe you can contact the company's WC insurance carrier directly to see if they require signed "opt-out" forms. It may turn out the company has no coverage at all.

If you have a pending worker's compensation case, I suggest reposting in that category, as that has ramifications on your case.