{"data":{"id":"us-ky/krs-342.012","jurisdiction":"us-ky","citation":"KRS 342.012","heading":"Business owners -- Election to be included as employees -- Qualified","body":"partners and members, nonqualified partners and members, and limited\nliability company defined -- Provision of partnership agreement or articles of\norganization upon request.\n(1) For the purposes of this chapter, an owner or owners of a business, including\nqualified partners of a partnership owning a business, or qualified members of a\nlimited liability company, whether or not employing any other person to perform a\nservice for hire , shall be included within the meaning of the term employee if the\nowner, owners, qualified partners, or qualified members of a limited liability\ncompany elect to come under the provisions of this chapter and provide the\ninsurance required thereunder. Nothing in this section shall be construed to limit the\nresponsibilities of the owners, partners, or members of a limited liability company\nto provide coverage for their employees, nonqualified partners, or nonqualified\nmembers, if any, required under this chapter.\n(2) When an owner, owners, qualified partners, or qualified members of a limited\nliability company have elected to be included as employees, this inclusion shall be\naccomplished by the issuance of an appropriate endorsement to a workers'\ncompensation insurance policy.\n(3) For the purpose of this section, \"qualified partner\" or \"qualified member or\nmembers\" means, respectively, a partner who has entered into a meaningful\npartnership agreement or a member who has entered into meaningful articles of\norganization or a meaningful operating agreement of a limited liability company,\nwhich document shows on its face that the partner will substantially participate in\nthe profit or loss of the business engaged in by the partnership or limited liability\ncompany a nd that the partner or member has made some contribution to the\npartnership or limited liability company which entitles him or her to participate in\nthe profits of the business as well as to participate in the decision-making process of\nthe partnership or limited liability company.\n(4) For the purposes of this section, \"nonqualified partner\" or \"nonqualified member\"\nmeans, respectively, a person who has entered into a partnership agreement, or\narticles of organization or operating agreement of a limited liability company, which\ndocument shows on its face that this person will receive regular payments in\nexchange for work for the business engaged in by the partnership or limited liability\ncompany; that the person will not participate in the decision -making of  the\npartnership or limited liability company and will not participate in the profits and\nlosses of the business engaged in by the partnership or limited liability company.\n(5) Every partnership and limited liability company shall provide, upon the request  of\nthe commissioner or his or her representative, a copy of its partnership agreement or\narticles of organization for purposes of demonstrating compliance with this section\nand KRS 342.340. With particular reference to employers engaged in coal mining,\nthe commissioner shall promptly report the failure to comply with the provisions of\nthis subsection to the Energy and Environment Cabinet, Department for Natural\nResources, Division of Mine Safety, so that appropriate action may be undertaken\npursuant to KRS 351.175.\n(6) For purposes of this section, a \"limited liability company\" means an entity defined\nin KRS 275.015 and organized under the provisions of KRS Chapter 275.","path":["KRS Chapter 342"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=44523","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:30Z","sha256":"dda4e22ba6f36be41b1099eb7213259fedddafc61c154c2d3d5de6c1e940df32","source_id":"us-ky","stale":false,"prev":"us-ky/krs-342.011","next":"us-ky/krs-342.015"},"notice":"GroundRules: Original legal text. Not legal advice."}