SB40 Summary

• Adds a new exclusion from workers' compensation coverage for members of limited liability companies who individually own at least 50% distributional interest in the LLC and carry personal health insurance.

• Prohibits employers from requiring employees to form a limited liability company as a condition of employment.

• Amends Hawaii Revised Statutes Section 386-1 to add the LLC member exclusion as item (10) to the definition of "employment" exclusions.

• Takes effect upon approval and does not affect rights, duties, penalties, or proceedings that occurred before the bill's effective date.