HB359 Alabama 2016 Session

Summary

Primary Sponsor

Barry Moore

Republican

Session

Regular Session 2016

Title

Workers' Compensation, number of employees not to include the employees or other person owning a certain percentage of the company for coverage purposes, Sec. 25-5-50 am'd.

Summary

HB359 changes how workers' compensation coverage is determined by excluding the business owner and any 50% or greater owner from the employee count used to decide if coverage is required.

What This Bill Does

If enacted, the bill amends the counting rule for determining coverage by not counting the owner or any owner with 50%+ ownership as an employee. This could allow more small businesses to qualify for exemption from workers' compensation requirements. It also preserves mechanisms for small employers to choose whether to accept or withdraw coverage, and it lets corporate officers elect exemption or coverage annually with specific filing rules.

Who It Affects

• Small businesses that regularly employ fewer than five employees in a single business, where ownership includes a person with 50% or more of the business; excluding those owners from the employee count may change whether the business must carry workers' compensation.
• Corporate officers of corporations; they may elect to be exempt from coverage or to be covered on an annual basis, with certification and withdrawal/revocation procedures.
• State-certified volunteer fire departments and legally organized rescue squads; they have voluntary coverage options and related wage and coverage provisions carried forward by the bill.

Key Provisions

• Amends Section 25-5-50 to exclude the employer and any person owning 50 percent or more of the business from the 'employee' count for workers' compensation eligibility, with a small construction-related exception.
• Allows employers who regularly employ fewer than five employees to elect to accept coverage or withdraw, by filing written notice with the Department of Labor and posting, and to withdraw by similar notice; requires notification to employees if coverage is not accepted.
• Allows corporate officers to elect annually to be exempt from coverage or to be covered, with certification filed with the Department and the employer's insurance carrier; exemptions become effective the first day of the following calendar month and can be revoked with similar certification—employer remains liable for other covered employees.
• Retains existing provisions for volunteer fire departments and rescue squads to purchase coverage voluntarily, and sets wage rules for computing average weekly wage for these volunteers; clarifies that regular employers remain responsible for coverage for non-volunteer 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