1. (1) A corporation, limited liability company, or partnership may elect to provide workers’ compensation coverage for otherwise nonsubject workers.

   1. (a) A carrier-insured employer must make the election to the insurer in writing on or before the effective date of the policy. An election remains in effect until a revised election is given to the insurer.
   2. (b) A self-insured employer must file the election with the director.

2. (2) If an employer that is subject to a maximum number of exempt corporate officers, members, or partners under ORS 656.027 does not file an initial election, or is not in compliance with ORS 656.017 and 656.407, then the exempt individuals will be determined in the following order:

   1. (a) For a corporation:

      1. (A) President;
      2. (B) Secretary, if any;
      3. (C) Vice President, if any;
      4. (D) Secretary/Treasurer, if any;
      5. (E) Treasurer, if any;
      6. (F) All other officers, if any; or

   2. (b) For a limited liability company or partnership:

      1. (A) The member or partner with the largest ownership interest;
      2. (B) The member or partner with the next largest ownership interest; and
   3. (c) If more than one person holds the same office, or more than one member or partner has equal ownership interest, the sequence of those persons will be the same as the chronological order of their birthdays in a calendar year.
3. (3) Noncomplying corporations, noncomplying limited liability companies, or noncomplying partnerships, regardless of the number of employees, are limited to two exempt officers, members, or partners to be determined in accordance with section (2) of this rule.

4. (4) For the purposes of clarifying terms used in ORS 656.027:

   1. (a) "Commercial harvest of timber" means all commercial activities relating to harvest of timber from a parcel of property including, but not limited to, road building, marking of trees to be cut, timber falling, slash removal, and transportation of timber to the location where it will be processed into lumber or other products;
   2. (b) "Director" means a person elected or appointed to a corporation’s board of directors in accordance with its articles of incorporation or bylaws; and
   3. (c) "Substantial ownership" means a percentage of ownership equal to or greater than the average percentage of ownership of all the owners, or ten percent, whichever is less.

Statutory/Other Authority

ORS 656.726(4)

Statutes/Other Implemented

ORS 656.027 & 656.039

History

WCD 10-2019, amend filed 12/17/2019, effective 01/01/2020
WCD 5-2016, f. 11-28-16, cert. ef. 1-1-17
WCD 6-2012, f. 10-4-12, cert. ef. 1-1-13
WCD 1-2008, f. 6-13-08, cert. ef. 7-1-08
WCD 12-2003, f. 12-4-03, cert. ef. 1-1-04
WCD 5-2001, f. 6-22-01, cert. ef. 7-1-01
WCD 1-1998, f. 1-9-98, cert. ef. 1-23-98
WCD 9-1996, f. 3-11-96, cert. ef. 4-1-96
WCD 3-1992, f. 1-10-92, cert. ef. 2-1-92
WCD 7-1991(Temp), f. 10-4-91, cert. ef. 10-7-91
WCD 25-1990, f. 11-29-90, cert. ef. 12-26-90
WCD 8-1990(Temp), f. 6-18-90, cert. ef. 7-1-90
WCD 9-1987, f. 12-18-87, cert. ef. 1-1-88
WCD 9-1985, f. 12-12-85, cert. ef. 1-1-86
WCD 7-1983, f. 12-22-83, cert. ef. 12-27-83, Renumbered from 436-051-0065
WCD 4-1982, f. 2-10-82, cert. ef. 2-15-82