HB497 Alabama 2023 Session

Summary

Primary Sponsor

Mike Kirkland Representative

Republican

Session

Regular Session 2023

Title

Relating to workers' compensation; to amend Section 25-5-11, Code of Alabama 1975, to further provide for the employer's right of subrogation against uninsured and underinsured motorist insurance; and to specify that in a settlement of claims against a third party, the employer's share of the employee's attorney fees does not include costs or expenses.

Description

Under existing law, when an employee is injured or killed in a work-related accident caused in whole or in part by a party that is not the employer, the employee or the employee's survivors, in addition to a claim against the employer for workers' compensation, may also pursue the party that caused the accident for damages in a separate civil suit. If damages are recovered from the party, the amount of the recovery is credited to the amount of the employer's workers' compensation obligation to the employee or the employee's survivors. The employer's right to reimbursement extends to bringing its own civil suit against the party that injured the employee where the employee or the employee's survivors have not obtained recovery from the party.

However, in a case in which an employee is injured or killed on the job in a vehicle accident, uninsured and underinsured motorist insurance benefits paid for by the employer cannot be used to reimburse the employer for its workers' compensation paid or due to the employee.

This bill would allow an employer to seek reimbursement for its workers' compensation obligation from uninsured or underinsured motorist insurance that HB497 INTRODUCED it has purchased in a case where an employee has been hurt or killed in a work-related vehicle accident.

This bill would also specify that in case of a settlement between an employee or the employee's survivors with the party that caused the injury, any portion of the employee's attorney fees for which the employer is responsible shall exclude the costs and expenses of the attorney.

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Subjects

Worker's Compensation, specifying the employer's right to subrogation