HB20 Alabama 2016 Session

Summary

Primary Sponsor

Jack Williams

Republican

Session

Regular Session 2016

Title

Workers' compensation insurance, corporate officer exempt from, procedures provided for, Sec. 25-5-50 am'd.

Summary

HB20 would remove the requirement for corporate officers to notify the Department of Labor when electing exemption from workers' compensation coverage and let the exemption stay in place until the officer revokes it.

What This Bill Does

The bill amends Section 25-5-50 to remove the notice to the Department of Labor for corporate officer exemption. Once exempt, the officer’s status remains in place through subsequent years unless they file to revoke, and the revocation must be accepted by the employer’s workers' compensation insurer and the department. The revocation process may require an affidavit from the officer confirming no injury or accident since the exemption, and the effective date is the first day of the calendar month after acceptance. The change does not remove the employer’s obligation to continue providing coverage for other eligible employees.

Who It Affects

• Corporate officers of corporations: may elect and maintain exemption from workers' compensation coverage without notifying the Department of Labor, until they actively revoke.
• Employers and their workers' compensation insurers: handle the exemption/revocation filings and processing, and must continue to cover other eligible employees; may require an affidavit for revocation.

Key Provisions

• Eliminates the requirement that corporate officers notify the Department of Labor when electing exemption from workers' compensation coverage.
• Once exempt, a corporate officer’s exemption remains in place until the officer revokes it under specified procedures; revocation requires written certification of the election to reinstate coverage and acceptance by the insurer (and department).
• May require the officer to sign an affidavit confirming no employment-related injury since the exemption; failure to comply can prevent revocation.
• Exemption or reinstatement becomes effective on the first day of the calendar month after acceptance by the department via the employer's insurer.
• The exemption of corporate officers does not relieve the employer from continuing coverage for all other eligible employees.

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