Workers' Compensation Laws in Alabama
Alabama's Workers' Compensation Law requires you to carry Workers' Comp coverage if you have more than five employees, full-time or part-time (including officers of a corporation). Employers of domestic employees, farm laborers, or casual employees and municipalities having a population of less than 2,000 (according to the most recent federal census) are not required to provide coverage.
AL Workers' Comp: Key Details
- Sole proprietors in Alabama can purchase Workers' Comp for themselves, but must complete a WC14 Part I Form and file it with the Alabama Department of Labor.
- Sole proprietors can opt out of carrying the coverage.
- AL businesses with fewer than five employees are exempt from carrying coverage.
- There is no state funded WC pool. Coverage must be purchased through a commercial insurance provider. Self insurance is also permitted for approved businesses.
For more on Worker's Comp laws in Alabama, check out the Alabama Department of Labor's insurance requirement information.