Special Note: Massachusetts Division of Insurance has approved two separate small deductible plans. The first, known as the "Massachusetts Benefits Claim and Aggregate Deductible Program," applies an aggregate limit (a maximum is placed on the amount expended as deductible by the employer) to the policy. Deductibles for this program are $2,500 per claim with a $10,000 aggregate limit for policies with premium less than $200,000 and $2,500 per claim with an aggregate of 5% of policy premium for those with a premium more than $200,000. The second, known as the "Massachusetts Benefits Deductible Program" does not include an aggregate limit (no limit on the amount an employer may have to pay as deductible.) Available deductibles for this program are: $500; $1,000; $2,000; $2,500 and if adequate collateral is provided to the carrier $5,000 may be applied. Statute information is found in Section 25A, Chapter 152.
Sole Proprietor: Excluded from coverage/may elect to be included - sole proprietors of an unincorporated business are not required to carry workers' compensation insurance for themselves. However, under a change to the law in 2002, sole proprietors may now choose to purchase workers' compensation insurance coverage for themselves. $41,300 used to calculate premium for sole proprietors effective 10-1-11, $42,700 as of 10-1-2012, $43,000 as of 10-1-2013, $44,200 as of 10-1-2014.
Partners: Excluded from coverage/may elect to be included - partners of an unincorporated business are not required to carry workers' compensation insurance for themselves. However, under a change to the law in 2002, partners may now choose to purchase workers' compensation insurance coverage for themselves. $41,300 used to calculate premium for partners effective 10-1-11 and $42,700 as of 10-1-2012, $43,000 as of 10-1-2013, $44,200 as of 10-1-2014.
Corporate Officers: Included in coverage/may elect to be exempt - Any corporate officer who owns at least 25% interest in the corporation may exercise their right to exempt themselves from the provisions of the Workers' Compensation Act. In order for corporate officers to exercise this right of exemption, all eligible corporate officers must sign the Affidavit of Exemption for Certain Corporate Officers or Directors - Form 153, stating whether or not they wish to exempt themselves. The exemption must be filed with the DIA's Office of Investigations in Boston for approval. Minimum payroll used for included corporate officer is $200 per week. Maximum payroll used for included corporate officer is $1,000 per week as of 10-1-11 and remains the same as of 10-1-2012 and remains the same as of 10-1-2013 and remains the same as of 10-1-2014.
LLC Members: Members of a Limited Liability Company (LLC) and partners of a Limited Liability Partnership (LLP) are not required to carry workers' compensation insurance for themselves. However, under a change to the law in 2002, such members may now choose to purchase workers' compensation insurance coverage for themselves. 41,300 used to calculate premium for included members effective 10-1-11, $42,700 as of 10-1-2012, $43,000 as of 10-1-2013, $44,200 as of 10-1-2014.
A Note About Forms: Be sure to contact your insurance company for information about additional forms they may use for exclusion or inclusion of coverage.
Contractors: A touchy subject! The Attorney General's Office has released an Advisory on the Massachusetts Independent Contractor/Misclassification Law (M.G.L. c. 149, s. 148B). The Commonwealth’s Independent Contractor Law was designed to protect workers and ensure a level playing field among employers. The Advisory articulates the purposes of the law and provides guidance on the three prong test and other areas of the Law. In addition, the Advisory includes Enforcement Guidelines describing the areas of concern and factors which may be used by the Attorney General's Office in making a determination about enforcement. Go here to read the advisory:
Special Notes: Family members must be covered by workers' compensation insurance even if they are the only employees of the company. For all interstate experience rated risks, copies of the Massachusetts experience is filed with the WCRIB of MA and with the NCCI.
Massachusetts Workers Compensation Subrogation: Statute 152 Section 15 is where you will find information about workers compensation subrogation for the State of Massachusetts. This section is titled "Liability of person other than insured" and is easily available to view online. We've provided the below link for your use. This link will take you directly to this Massachusetts statute.
Massachusetts Statute On Subrogation
Massachusetts Workers Working In Other States; Other States Workers Working In Massachusetts, Extraterritorial, Reciprocity and Non-Compliance: If Massachusetts workers are working temporarily in another state, then workers compensation coverage for that worker is governed by the extraterritorial provisions found in Massachusetts statutes. When allowed, extraterritorial provisions allow benefits for an injured worker to apply as if the worker was in their primary state. Not all states provide Extraterritorial Provisions. It's reciprocity that governs coverage for a worker from another state who is working temporarily in Massachusetts. Massachusetts is one of the states that requires coverage be listed in section 3A on a workers compensation policy information page. Compliance of workers compensation laws varies from state to state and it is important for an employer with workers performing duties in other states to be aware of the specific state rules that govern their coverage. We've provided the below general information about extraterritorial and reciprocity as a basic guide. Please contact your state authority with your specific questions concerning this topic!
Provisions: No specific information found
Duration: No specific information found
Specific Statute:Massachusetts 152-26; This statute seems to address workers outside the commonwealth. Be sure to direct any questions you may have to the Department of Industrial Accidents. It is confusing.
For More Information Contact: Massachusetts Department of Industrial Accidents shown below.
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Information on this page is provided only as a reference. While we strive to mantain accurate information on this site please realize workers compensation laws are complicated and subject to change at any time. No warranty as to the accuracy or completeness of this information is provided or to be implied. You must verify this data before use with the individual governing authority for this state. If you need help with a workers compensation problem or have a specific situation or question please contact our office. Otherwise please consult your states governing authority or an attorney in your state of residency for assistance.