Legal Question in Business Law in California

As a Franchise Attorney I advise you to check with the State Fund which handles workers comp. They will advise you about the current workers comp requirements and exemptions. Consult with a good business or franchise attorney in your area for specific advice.

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

Franchise Foundations, a Professional Corporation

The threshold determination is whether you have employees. Having one employee requires you to have worker's compensation insurance. Any person working for another is presumed to be an employee, (Lab. Code, sect. 3511.) unless he or she is an independed contractor, or is specifically excluded by the Labor Code. (Lab. Code, sect. 3577.)

Coowners of a business are not normally considered employees, and are generally not covered by worker's compensation. Rather, they must obtain personal insurance.