HB242 Alabama 2017 Session

Summary

Primary Sponsor

Danny GarrettRepresentative

Republican

Session

Regular Session 2017

Title

Workers' compensation, exemptions, persons exempted, Sec. 25-5-50 am'd.

Summary

HB242 would expand who can opt out of Alabama workers' compensation coverage to include LLC members and specify how the exemption is filed and renewed.

What This Bill Does

It allows an officer of a corporation or an individual member of a limited liability company (LLC) to elect annually to be exempt from workers' compensation coverage by filing a written certification with the department and the employer's workers' compensation insurer. The exemption remains in effect unless properly revoked, with year-end revocation possible by filing a certification to be covered (and an earlier option to revoke with an affidavit of no injury when seeking reinstatement). The exemption does not relieve the employer from continuing coverage for other eligible employees and does not change the individual's employee status for determining coverage thresholds. The act becomes effective on the first day of the third month after passage and governor approval.

Who It Affects

• Corporate officers who may elect to be exempt from workers' compensation coverage.
• Individual members of limited liability companies (LLCs) who may elect to be exempt from workers' compensation coverage.
• Employers of those corporate officers or LLC members, who must manage coverage for other employees accordingly.

Key Provisions

• Adds LLC members to the group of people who may elect exemption from workers' compensation coverage (along with corporate officers).
• Permits the annual exemption by filing written certification of the election with the department and the employer's workers' compensation insurer.
• Exemption remains in effect unless revoked; end-of-year revocation is allowed by filing certification to reinstate coverage, and revocation outside year-end requires an affidavit of no injury for reinstatement.
• The exemption does not relieve the employer from continuing coverage for other eligible employees and does not change the individual's status for determining employment thresholds.
• Effective date: the act takes effect on the first day of the third month after passage and governor approval.

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