Revised Iowa Workers’ Compensation Law Regarding Proprietors, LLC Members, LL Partners and Partner

By | August 17, 2015

Author:  Walton staff – June 15, 2015  |

On April 17, 2015, Iowa Governor Terry Branstad signed into law legislation “relating to certain persons who are excluded from coverage under the workers’ compensation law of this state,” effective July 1, 2015.

For the first time it impacts a proprietor, limited liability company member, limited liability partner or a partner who does not elect to be covered by the workers’ compensation law of this state pursuant to section 85.1A by purchasing valid workers compensation insurance specifically including that person, shall file a nonelection of workers’ compensation coverage by signing and attaching to the worker’s compensation or employers’ liability policy a written nonelection, or if such a policy is not issued, by signing a written nonelection which is witnessed by two disinterested individuals who are not, formally or informally, affiliated with the employer and which is  filed by the employer with the workers’ compensation commissioner.

The workers’ compensation commissioner shall maintain a list of those employers that have filed a written nonelection pursuant to subsection 5, paragraph “b”, and that list shall be a public record open to public inspection.

The Iowa Workers Compensation Division has released the approved form that can be used to inform the state of their election not to be covered, or if they have a workers’ compensation policy for employees, but elect not to be covered, that can be used to file with the carrier.  [This is basically the same form used in Iowa for many years to exclude corporate officers, but which now applies to the above entities as well.]

Important reminder:  If there is no workers’ compensation policy, the form must still be filed with the Iowa Workers’ Compensation Division where it becomes public record open to public inspection.

To view a copy of the law “House File 259” click HERE.

For a copy of the form “14-0175 (5-15)” click HERE

For Iowa Code, Chapter 85, Workers’ Compensation click HERE