Ark. Clarifies Changes to Certificate of Noncoverage Law

August 15, 2005

The Arkansas Workers’ Compensation Commission issued a bulletin clarifying that Act 1917 of 2005, effective Aug. 12, 2005, amended Ark. Code Ann §11-9-402 regarding certificates of non-coverage (CnC) issued by the commission.

Since Act 796 of 1993, sole proprietors, partners and members of limited liability companies who elect not to be included in the definition of employee under the state’s workers’ compensation laws are eligible to receive them. CnC’s were never intended for employees and do not affect their rights under the law. Corporate officers are not eligible.

Ark. Code Ann. §11-9-402 holds prime contractors liable for compensable injuries suffered by employees of their uninsured subcontractors. The new language states that prime contractors are liable “…unless there is an intermediate subcontractor who has workers’ compensation coverage.” Thus, when an intermediate subcontractor, ie one who is between the prime contractor and an uninsured subcontractor, has coverage, the injured employee may look to that subcontractor’s workers’ compensation coverage.

Another change, adds the provision that a CnC may not be presented to a subcontractor who does not have workers’ compensation coverage.

Individuals with questions about the interpretation of Act 1917 may talk to the AWCC’s Legal Advisor Division. Persons who need instructions about applying for and obtaining a CnC may contact the AWCC Operations/Compliance Division. And those who need help finding the application form to obtain a CnC can call Support Services Division at the AWCC for help with Form A.

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