SB9 Alabama 2012 Session

Summary

Primary Sponsor

Gerald O. Dial

Republican

Session

Regular Session 2012

Title

Workers' compensation insurance, volunteer fire departments and rescue squads, Insurance Department to set rates, based on certain annual payroll per person, Sec. 25-5-50 am'd.

Summary

SB9 would require the Alabama Insurance Commissioner to cap the annual payroll used to calculate workers’ compensation rates for volunteer fire departments and rescue squads at $300 per member per year.

What This Bill Does

It sets a fixed cap on payroll used for rate calculations and directs the Insurance Commissioner to regulate rates for volunteer departments. It clarifies that voluntary workers’ compensation coverage is available but not mandatory, and outlines exemptions and notice requirements for small employers and corporate officers. It also maintains existing wage calculation rules and confirms that regular employers are not liable for injuries to volunteers.

Who It Affects

• Volunteer fire departments and legally organized rescue squads (and combination departments) would have their workers’ compensation rate calculations based on a capped payroll of $300 per member per year.
• Corporate officers of volunteer-related organizations would have the option to elect exemption from coverage (and later revoke) under the bill.

Key Provisions

• The Insurance Commissioner must regulate and set the maximum annual payroll per firefighter or rescue squad member used for workers’ compensation rate purposes, with a cap of $300 per member per year.
• Voluntary coverage is available for certified volunteer departments and legally organized rescue squads; coverage is not mandatory.
• Exemptions apply to certain small employers and other groups (e.g., those with fewer than five employees) who may elect to accept coverage or withdraw with notice; notices must be posted where applicable.
• Corporate officers may elect to be exempt from coverage annually; exemptions take effect on the first day of the calendar month following filing and may be revoked later by filing.
• If coverage is provided, the average weekly wage for injuries is 66 2/3 of regular earnings or 66 2/3 of minimum wage, whichever is greater.
• Regular employers are not liable for compensable injuries to volunteer firefighters or rescue squad members; there are clarifications about who is and isn’t considered an employee for workers’ compensation purposes.
• Certain individuals (e.g., licensed real estate agents, product demonstrators) are not considered employees for the purposes of this chapter.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Insurance Department