All states / Alabama
Alabama Workers' Compensation Requirements
Required from 5 employees
✓ Verified 2026-09-08 Source: AL Department of Labor - Workers' Compensation ↗
See something wrong? Tell us →
At a glance
5+
employee threshold (general)
1
construction threshold
Private market
buy from any carrier
AL Department of Labor - Workers' Compensation
official source (verified 2026-09-08)
The details
Required when regularly employing 5+; contractors excluded from the 5-employee exception (construction effectively 1+).
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.
📧 Get an email when Alabama's minimum wage changes
Subscribe via email →
free · no spam · only when rates change
Official source: AL Department of Labor - Workers' Compensation · Verified 2026-09-08 (official) · Compare all states · Construction rules · Farm rules