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Committee forwards bill to clarify LLC liability for workers’ compensation coverage
Summary
House Bill 64 would clarify that both managers and members of limited liability companies can be held accountable for securing workers’ compensation insurance. The Industrial Commission told lawmakers many enforcement cases name LLCs, and the committee sent the bill to the House floor with a do-pass recommendation.
The committee voted to send House Bill 64 to the House floor with a do-pass recommendation after the Idaho Industrial Commission described enforcement difficulties arising from LLC organizational structures.
Representative Bruce (District 23) introduced the amendment to Idaho Code intended to clarify that the term “member” in IC 72-3-19 applies to both managers and members of LLCs so responsible parties cannot avoid accountability for obtaining workers’ compensation insurance.
Claire Sharp, a commissioner at the Idaho Industrial Commission, told the committee the commission has encountered a sizable number of enforcement cases involving LLCs. She said that in 2024 the commission referred cases to the attorney general’s office; of those referrals, 121 cases resulted in lawsuits and about 78 named an LLC. Sharp said inconsistent statutory language has led to delay and uncertainty in enforcement and that the amendment is intended to provide clarity.
Representative Achilles moved to send House Bill 64 to the floor with a do-pass recommendation; the motion carried on a voice vote. No members of the public testified for or against the bill at the committee hearing.
The amendment would explicitly change statutory language in Idaho Code section 72-3-19 to ensure individuals described as members of an LLC are treated consistently under the enforcement provisions of the workers’ compensation code. The committee record does not include a fiscal estimate or additional implementation details beyond the commission’s testimony.
