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Alabama Workers' Compensation Requirements
At a glance
The details
Required when regularly employing 5+; contractors excluded from the 5-employee exception (construction effectively 1+).
If a claim happens: benefit amounts in Alabama
Max TTD weekly benefit as of Jan 1, 2025 (IAIABC/WCRI Workers' Compensation Laws 2025 compendium, Table A.1). Annual-adjustment states have since raised 2025-2026 rates — verify before launch Medical: See state agency — benefit structure varies. Death: see state agency. Rate cycle: adjusts 07/01 each year. All states' benefit rates →
FAQ
Do I need workers' compensation in Alabama?
Yes — once you regularly employ 5 or more employees (full or part-time), Alabama requires workers' compensation coverage.
What about construction businesses in Alabama?
Construction has a stricter threshold: coverage is required from 1 employee(s), versus 5 for general businesses.
What if I don't carry required coverage in Alabama?
Penalties vary by state and can include per-employee per-day fines, stop-work orders, and personal liability for injury claims. Check the official source below for Alabama's current enforcement posture.
Official source: AL Department of Labor - Workers' Compensation · Verified 2026-09-08 (official) · Compare all states · Construction rules · Farm rules