SB304 Alabama 2014 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Cam Ward
Republican
Session: Regular Session 2014
Title: Workers' compensation, coverage exemption filed only with carrier, limited liability company added, Sec. 25-5-50 am'd.
Summary: SB304 lets corporate officers and LLC members opt out of workers' compensation coverage and changes how exemptions are filed and managed.
What This Bill Does
Specifically, it adds corporate officers and LLC members to the people who may elect to be exempt from coverage. The exemption filing must be made with the department and the employer's insurance carrier, and the old requirement to file solely with the Department of Labor is removed. The exemption is elected annually and can be revoked at the end of the calendar year to accept coverage. Exemptions do not relieve the employer from covering other eligible employees, and the exempt individual's status counts toward the employer's total employee count for coverage determinations.

Who It Affects
Corporate officers of corporations and members of limited liability companies: may elect annually to be exempt from workers' compensation coverage.
Employers and their other employees: the exemption for one individual does not remove coverage for others, and the exempt individual's status counts toward the employer's total employee count.

Key Provisions
Adds corporate officers and LLC members as eligible filers to elect exemption from workers' compensation coverage.
Requires exemption filing with the department and the employer's insurance carrier, removing the prior requirement to file solely with the Department of Labor.
Exemption is annual and may be revoked at the end of the calendar year to accept coverage.
Employer remains responsible for providing coverage for all other eligible employees; the exempt individual's status is counted for determining the employer's number of employees.
The act itself becomes law on the first day of the third month after passage; exemption/reinstatement dates follow filing with the department and carrier.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Workers' Compensation