Skip to main content
Find a Lawyer
Please enter a legal issue and/or a location
Begin typing to search, use arrow keys to navigate, use enter to select

Alabama Workers' Compensation Laws

By Christie Nicholson, J.D. | Legally reviewed by Laura Temme, Esq. | Last reviewed November 04, 2024

This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw’s team of legal writers and attorneys and in accordance with our editorial standards.

The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area.

Regardless of where you live, if you’re an injured employee, there’s a good chance your state’s workers’ compensation program will cover your injuries. Of course, to receive workers’ compensation benefits in Alabama, you must prove that you meet specific criteria.

Even if your employer’s workers’ compensation insurance company agrees to cover your claim, you may not know what benefits you deserve. The last thing you want to happen is to have your company take advantage of you, especially when you’re in such a vulnerable position.

Here, we’ll explain how Alabama workers’ compensation laws work. We will also describe the types of benefits you’ll receive.

Who Oversees Alabama’s Workers’ Compensation Program?

The Alabama Department of Labor oversees the state workers’ comp program. When there are disputes over whether the insurance company should pay a claim, the claimant files their appeal with the Department of Labor (DOL).

The DOL also specifies the annual adjusted average weekly wages for claimants, employers, and workers. The DOL is also the agency that steps in if an Alabama employer does not provide the office with insurance requirement information.

All employers with five or more employees must maintain workers’ comp insurance. If a company does not have the requisite insurance coverage, it will face fines and other penalties.

Alabama Workers Comp Laws at a Glance

The table and accompanying information below summarize the most critical portions of Alabama workers' compensation laws.

You can appeal if your employer’s insurance carrier has denied your workers’ comp claim. If you choose to do this, you should familiarize yourself with Alabama law. You may also want to consult an Alabama workers’ compensation lawyer.

The chart below highlights Alabama’s workers comp laws, which you’ll find under the Alabama Code. This chart will also answer questions you have about your workers’ compensation claim and your rights as an injured worker in Alabama.

Statute of limitations
  • Two years from the date of your on-the-job injury or your last compensation payment, whichever is later. (Ala. Code §25-5-117)
  • You must file your claim within the statute of limitations period. Otherwise, the insurance company will deny your claim, and you’ll lose your right to benefits and reimbursement.
  • If you receive temporary benefits and your employer demands that you return to work, either full-time or part-time, you may have to file a civil claim. In this situation, the statute of limitations period will expire two years from the date of your last benefits payment.

Time limits on your workers’ comp benefits

Every state limits how long a claimant can receive benefits under their employer’s workers’ compensation coverage. Your benefits period will depend on the nature and extent of your injury.

  • For injuries lasting longer than 21 days: Your employer’s workers comp insurance will pay benefits for days one through three on day 22 (§25-5-59). This is due to the mandatory waiting period.
  • For injuries lasting fewer than 21 days, your benefits begin on the fourth day (§25-5-59)
  • Temporary Partial Disability: Claimants can receive benefits for up to 300 weeks. (§25-5-57(2))
  • Permanent Total Disability: There is no cap on benefits for claimants with a permanent total disability. (§25-5-57(4).

Benefit amount limits

  • Maximums: For injuries occurring on or after 7/1/16, the maximum weekly benefit rate is $1,130.00. (This is as of 2024.) The Department of Labor changes this amount yearly and determines the new cap by looking at the national average weekly wages.

  • The minimum weekly wage is $311.00. If your total wages are less than $311, you will receive your full rate.

  • Temporary Total Disability: You’ll receive the lesser of the following two rates:

    • Earnings during the last 52 weeks ÷ 52 X 66 2/3% or

    • Alabama’s Average Weekly Wage (§25-5-57(1))

  • Temporary Partial Disability: The claimant will receive 66% of the difference between their normal wages and their average weekly earnings while partially disabled. (§25-5-57(a))

  • Permanent Partial Disability: Claimants with a permanent partial disability receive 66 2/3% of their average weekly earnings before the first injury report. (§25-5-57(3))

  • Permanent Total Disability: Claimants receive the same amount of money as they do with a temporary total disability (TTD) claim.

Who Can Receive Workers Comp Benefits in Alabama?

If you work for a company that regularly employs five or more employees, you should be entitled to benefits under Alabama’s workers' compensation laws. The Department of Labor includes part-time and full-time employees to determine coverage.

Under Alabama state law, some categories of employees are not eligible for workers’ compensation benefits. These include the following:

  • Domestic employees
  • Farm laborers
  • Casual employees
  • Employees of municipalities having a population of less than 2,000
  • Federal employees
  • Railroad workers

If there is a dispute over whether you can apply for benefits through your employer’s workplace program, you can seek help from your local Ombudsman program. You can also consult a workers’ compensation lawyer for legal advice.

Types of Benefits Available in Alabama

Two types of workers’ comp benefits are available in Alabama: medical benefits and replacement wages. If the insurance carrier approves your claim, they will cover any medical bills arising from your workplace injury.

In addition to covering your medical treatment, the insurance carrier must also pay your weekly replacement wages. While you won’t receive your full salary or wages, you will receive a significant percentage of what you’re used to making.

If your injury requires long-term medical treatment, your attorney may attempt to negotiate a lump sum payment with the insurance company. The more serious your injuries, the better the chances of this happening.

Benefit Amount Limits

While on workers comp, you’ll receive 2/3 of your average weekly wages. The best way to determine this amount is to take your total earnings for the year and divide this number by 52. If you haven’t worked for the company for a year, payroll will provide the insurance company with your average weekly wages based on the weeks you worked.

There is a limit to how much you can receive in replacement wages. The Department of Labor determines this amount annually. For 2024, the maximum weekly benefit rate is $1,130.

Imagine that you typically earn $2,000 per week. Under Alabama workers comp law, you would receive 2/3 of that amount (or $1,330). Since the cap for 2024 is $1,130, that is all you will receive. This is the case regardless of how high your earnings are.

What to Do If Your Employer or the Insurance Company Denies Your Claim

The insurance company (and your employer) may deny your workers’ compensation claim. This could happen for several reasons. For example, your employer may argue that your injuries didn’t occur on company time. They may have evidence showing that you were on your lunch break at the time of your workplace accident.

Some of the other reasons the insurance carrier may deny your claim include:

  • You have filed many workers’ compensation claims
  • You have only been with the company for a short time
  • You failed to report your injury in a timely fashion
  • You refused to seek treatment from a state-approved workers’ compensation doctor
  • You were under the influence of drugs or alcohol at the time of your injury

Depending on the reasons for denial, your attorney can file an appeal. Worst case, you can file a civil action against your employer.

Talk to an Alabama Injury Attorney About Your Workers' Comp Claim

Most people assume that, as long as they work hard, their employer will care for them if they suffer a workplace injury. Unfortunately, this isn’t always the case. Consult an experienced Alabama workers' compensation lawyer to help with your claim.

Was this helpful?

You Don’t Have To Solve This on Your Own – Get a Lawyer’s Help

Meeting with a lawyer can help you understand your options and how to best protect your rights. Visit our attorney directory to find a lawyer near you who can help.

Or contact an attorney near you:

Next Steps: Search for a Local Attorney

Contact a qualified attorney.

Begin typing to search, use arrow keys to navigate, use enter to select

Popular Directory Searches

Copied to clipboard

Find a Lawyer

More Options