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Alabama law

Workers' Compensation Laws in Alabama.

Alabama workers' compensation requires employers with 5 or more employees to carry coverage (1 or more in construction). TTD benefits pay 66 2/3% of average weekly wage with a maximum of $1,172/week (July 2025-June 2026). Alabama has unusually broad employer immunity — even intentional conduct by the employer is covered by the exclusive remedy doctrine. Co-employee immunity extends to all acts except willful conduct.

Last verified: 2026-02-25

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State law

Statute of Limitations

2 years from injury or last compensation paymentAla. Code § 25-5-80

Claims must be filed within 2 years of the date of the accident or 2 years from the last payment of compensation (not medical payments).

Exceptions

Notice to Employer5 daysAla. Code § 25-5-78

The injured worker must report the injury to the employer within 5 days or as soon as practicable. The employer must file a First Report of Injury with the Alabama Department of Labor.

State law

Key Alabama Statutes

TTD rate: 66 2/3% of average weekly wage. Maximum: $1,172/week (July 2025-June 2026). Minimum: $322/week. Duration: up to 300 weeks. 3-day waiting period; if disability exceeds 21 days, first 3 days paid retroactively.

Employer Coverage ThresholdAla. Code § 25-5-1

Employers with 5 or more employees must carry workers' compensation. Construction industry: 1 or more employees.

Workers' compensation is the exclusive remedy against the employer — even for intentional conduct. This is stricter than most states. Co-employees can only be sued for willful conduct (not negligence or wantonness).

Retaliatory DischargeAla. Code § 25-5-11.1

It is unlawful to terminate an employee solely for filing a workers' compensation claim. The employee can sue for retaliatory discharge.

PPD Maximum RateAla. Code § 25-5-68

The PPD maximum rate is significantly lower than TTD: $220/week. This substantial gap between TTD and PPD rates is notable compared to other states.

State law

Official Sources

Not Legal Advice

This page summarizes publicly available statutes and rules for informational purposes only. It does not constitute legal advice, and no attorney-client relationship is created by viewing this content. Laws change — always verify with the primary source or consult a licensed attorney in Alabama.

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