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Workers' Compensation: Alabama

Workers' Compensation requirements for other states

Federal law and guidance on this subject should be reviewed together with this section.

Author: Nicole Farley, Fisher Phillips.


  • All Alabama employers are required to post the Alabama Workers' Compensation Notice Poster in the workplace. See Notice Requirements.
  • Most Alabama employers are required to obtain and carry workers' compensation insurance, with some limited exceptions. See Covered Employers.
  • Employers have options to procure insurance to cover their potential workers' compensation liability, including private insurance, self-insurance and group self-insurance. See Covered Employers.
  • Virtually all employees, both full-time and part-time, are covered under Alabama Workers' Compensation Law, with some exceptions. See Covered Employees.
  • An injured worker is required to provide his or her employer written notice of any accident within a certain period of time. Failure to timely and properly advise employers of a workplace accident may render an employee's workers' compensation claim invalid. See Claims Procedure.
  • Workers' compensation is the exclusive remedy for personal injury or death of an employee from a work accident or occupational disease. Alabama law contains specific provisions for several types of occupational diseases common to the workplace. See Compensable Injuries.
  • Compensable injuries are injuries arising out of, and in the course of employment. However, not all injuries or illnesses suffered by employees will qualify for benefits. See Compensable Injuries.
  • Compensation may take the form of medical benefits, temporary total disability, temporary partial disability, permanent partial disability, permanent total disability, and death benefits to an employee's spouse or next of kin. See Workers' Compensation Benefits
  • Employers may contest an employee's version of events that lead to an injury or illness or may otherwise argue against the employee receiving benefits depending on the circumstances. See Employer Defenses.
  • There is no formal process for resolving disputed claims in Alabama. Rather, the Alabama Department of Industrial Relations, Workers' Compensation Division, operates an Ombudsman Program that assists individuals in resolving workers' compensation disputes through voluntary and informal mediation. See Claims Resolution.
  • Alabama law does not provide for a civil tort action against an employer arising from a workplace injury or illness, except when an injury or death is caused by the willful or intentional conduct of an officer, director, agent or employee of the employer, its workers' compensation insurance carrier or a related organization. See Claims Resolution.
  • The law provides for a five percent premium discount on workers' compensation policies to employers that implement a drug-free workplace program in accordance with the law's provisions. See Alabama Drug Free Workplace Program.