The new law eliminates workers' compensation insurance payment exemptions for corporate officers, partners, sole proprietors and independent contractors but doesn't affect residential homebuilders. Monthly premiums per worker are an estimated $150.

"The only exemptions removed were in commercial (non-residential) construction over $250,000," Wylie says. "This segment of the business is not experiencing the abuse mentioned, as it is more highly regulated and has a higher demand for skills and manpower."

Wylie says insurance regulators told the Legislature the change would have no impact on compensation insurance rates. "Complete elimination (of exemptions), including residential construction, would reduce overall rates between 10% and 15%," Wylie says.