SB431 Alabama 2013 Session

Summary

Primary Sponsor

Bryan Taylor

Republican

Session

Regular Session 2013

Title

Workers' compensation, coverage exemption filed only with carrier, limited liability company added, Sec. 25-5-50 am'd.

Summary

The bill changes who can opt out of workers' compensation coverage and how the exemption is filed.

What This Bill Does

It would allow corporate officers and members of limited liability companies to annually elect to be exempt from workers' compensation coverage. It would remove the requirement that the exemption certification be filed with the Department of Labor and would add LLC members to the people who may file for exemptions. If an exemption is chosen, the employer must continue coverage for all other eligible employees. The exemption or reinstatement certification would become effective on the first day of the calendar month after filing, and the act would take effect on a future date specified in the bill.

Who It Affects

• Corporate officers: may elect annually to be exempt from workers' compensation coverage.
• Members of a limited liability company: may elect annually to be exempt from workers' compensation coverage.
• Employers: must continue workers' compensation coverage for all other eligible employees even if an exemption is granted.
• Other employees: affected indirectly through changes in who can opt out and how exemptions are filed.

Key Provisions

• Amends Section 25-5-50 to allow corporate officers or LLC members to elect annual exemption from coverage and changes who may file for exemptions.
• Removes the requirement that the exemption certification must be filed with the Department of Labor (the filing mechanism is altered, per bill language).
• If an exemption is elected, the employer remains responsible for continuing coverage for all other eligible employees.
• Certification of exemption or reinstatement becomes effective on the first day of the calendar month following filing.
• The act becomes effective on the first day of the third month after passage and approval.

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

Subjects

Workers' Compensation