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Workers' Compensation Law

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How Do I Know If My Employer Is Covered By Workers' Compensation?

Virginia employers with three or more full or part­time employees are subject to the Workers` Compensation Act. There are certain restrictions to this rule where some employees may be employers may be exempt. Almost everyone working for another under a contract of hire or in an apprenticeship is considered an employee.

Sole proprietors and partners are considered owners of businesses and are not covered by workers` compensation. However, sole proprietors and partners may elect to obtain coverage for workers` compensation liability by purchasing insurance.

Members of a limited liability company (LLC) are considered to be owners of a company and are not covered by workers` compensation unless specifically covered by an insurance policy or either elected or appointed as a manager. The manager of an LLC is treated as a corporate officer under the Act.

A corporation`s officers may choose to reject workers` compensation coverage for accidents, but not for occupational diseases. To do so, officers must file a Notice of Rejection with the insurer and with the Commission. If the officers are paid regularly, they are nevertheless counted as employees to determine jurisdiction under the Act.

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