WORKER’S COMPENSATION – Amends existing law to provide that members of limited liability companies may be liable for a failure to secure compensation.

Business owners face personal workers’ compensation costs

Beginning July 1, 2025, Idaho extends personal workers’ compensation liability to limited liability company (LLC) members and managers. It applies when they have authority to secure required coverage but fail to do so. Like responsible corporate officers, they can personally owe the full compensation due for work injuries or occupational diseases during coverage gaps. The company also remains liable. An LLC member who fails to secure required coverage can also face a misdemeanor. Officers, employees, members, and managers face misdemeanor liability for knowingly helping or allowing efforts to avoid compensation payments after an injury or occupational disease. This includes transferring, selling, hiding, destroying, or placing debt against employer property, or hiding or destroying records. The daily coverage penalty remains $2 per employee or $25 total, whichever is greater. A second failure adds $500; a third or later failure adds $1,000. If a corporation or LLC cannot pay, responsible officers, members, or managers can owe the same penalty. They must have had authority to secure coverage and failed to do so; recovery covers no more than three consecutive years. The Industrial Commission brings penalty cases in the state's name in district court where the employer operates. When deciding whether to assess or collect penalties, it can consider coverage status, delays after notice, documented efforts to obtain coverage, prior lapses, and reasons coverage was unavailable or canceled. It can also consider other relevant factors. Courts can stop an employer from doing business while a coverage default continues. Collected penalties go to the Industrial Administration Fund.