A new Kansas workers' compensation law allows sole proprietor subcontractors without employees to waive the requirement to carry workers' compensation coverage. The waiver protects businesses and their insurance companies from injury claims by sole proprietors after the waiver is signed. However, businesses can still contractually require workers' compensation coverage from sole proprietor subcontractors. The waiver must be properly executed, signed, dated, notarized, and retained by both parties to avoid penalties for providing false information.

1. Benefit Bulletin is published by Bukaty Companies to communicate benefit, compliance and human resource information to clients
on a single topic. The bulletin will be distributed as topics warrant.
September 24, 2008
Keeping Your Business Informed and Prepared
Risk Management Bulletin
New Kansas workers’ compensation law impacts sole proprietor subcontractors
Sole proprietor waviver now available
On May 15, 2011, significant changes were made to the Kansas Workers’ Compensation Act.
One notable amendment to the Reform Act allows the use of waivers for sole proprietor subcontractors with no
employees. Before the new amendment sole proprietors were not required by law to carry workers’ compensation
coverage on themselves. However, it could be imposed upon them contractually by the general contractor. The
waiver is intended to be used by independent subcontractors who have no employees and therefore no legal
obligation to have coverage, but still are being contractually obligated to secure the coverage by general contractors
and other businesses to which services are rendered.
The amendment requires workers’ compensation insurance carriers to recognize the waiver. Businesses can
then provide the waiver to their workers’ compensation insurance carrier to avoid audit charges for uninsured
subcontractors. The waiver also protects the business and their insurance company if the subcontractor attempts
to file an injury claim after the document has been executed.
However, the amendment does not prevent businesses from contractually requiring workers compensation from
their sole proprietor subcontractors.
Further, this amendment does not relieve businesses, including general contractors, from the statutory employer
rules found within K.S.A. 44-503. Under certain circumstances the rule allows for the injured employees of
subcontractors to pass their injury claim through their immediate employer and on to the business that hired the
subcontractor.
A properly executed waiver must be signed, dated, notarized and retained by both the subcontractor and the
business to which services are rendered. Penalties up to $1,000 can be imposed for providing false information.
The link to the Affidavit of Exempt Status Under the Workers’ Compensation Act can be found at http://www.
ksinsurance.org/consumers/docs/WC_Affidavit.pdf.
For more information please contact Dan Bukaty at 913.345.0440 or email dbukaty@bukaty.com.
Bukaty Companies
11221 Roe Ave., Ste. 200
Leawood, KS 66211
Phone: 913.345.0440
Toll-Free: 888.657.0440
Fax: 913.345.2608
www.bukaty.com
July 13, 2011
Risk Management Bulletins are distributed as topics warrant. Information should only be used as a
supplemental resource. Its content is not intended to be a substitute for legal advice. For more information,
contact Bukaty Companies at 913.345.0440 or e-mail bukatycompanies@bukaty.com.