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GLOSSARY TERM

Managing member

An LLC member who also holds management authority; some states use management status and control to determine whether that owner is excluded from workers' compensation.

LLC workers' compensation rules can turn on who manages the company, not just who owns membership units. A managing member may be excluded, included, or eligible to elect coverage depending on the state's LLC model and workers' compensation statute.

Washington distinguishes member-managed and manager-managed LLC structures and applies limits based on whether a manager is also a member and exercises substantial control. Virginia separately defines certain LLC managers as executive officers for its rejection-of-coverage rules.

OFFICIAL SOURCE

Where this definition comes from

Glossary entries are anchored to a state agency, statute, board, commission, or recognized workers' compensation authority rather than a generalized summary.

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