Alabama workers' compensation is governed by Ala. Code § 25-5-1 et seq. Alabama is unusual among states because workers' comp disputes are heard in state circuit court, not an administrative commission. The Workers' Compensation Division of the Alabama Department of Labor handles claim records and ombudsman services.
1. Who Is Covered
Employers with 5 or more employees must carry workers' comp (Ala. Code § 25-5-50).
Excludes domestic workers, casual workers, agricultural workers, and certain other categories.
Sole proprietors, partners, and LLC members may opt out; corporate officers may opt out.
2. Notice to Employer — 5 Days for Full Benefits
Under Ala. Code § 25-5-78, give notice to the employer within 5 days for full benefits.
Late notice still allowed up to 90 days but may forfeit some benefits.
No notice within 90 days = claim barred (absent good cause).
3. Filing Deadline — 2 Years
File a complaint in circuit court in the county where the injury occurred or where the employee resides within 2 years of injury (Ala. Code § 25-5-80).
Alabama uses circuit court, not an administrative agency, for adjudication.
4. Weekly Benefit Calculation
Temporary Total Disability (TTD): 66 2/3% of AWW (Ala. Code § 25-5-57).
2024 maximum TTD: approximately $1,069/week (100% of SAWW); minimum: $271.50/week (27.5% of SAWW).
Temporary Partial Disability (TPD): 66 2/3% of difference between pre- and post-injury wages.
Permanent Partial Disability (PPD): scheduled or unscheduled.
5. Maximum Benefit Period
TTD: until MMI; max 300 weeks combined with TPD.
PPD scheduled: per body part schedule (e.g., arm = 222 weeks).
PPD unscheduled: 66 2/3% of difference between pre- and post-injury earning ability, max 300 weeks.
Permanent Total Disability: TTD rate for as long as the disability lasts (potentially lifetime).
6. Medical Treatment — Employer Directs
The employer/carrier has the right to choose the initial treating physician (Ala. Code § 25-5-77).
Employee may request one change to a different doctor selected from a panel of 4 physicians provided by the employer.
Medical benefits unlimited in duration.
7. Choice of Doctor
Restricted — initial employer choice; one change permitted from a panel of 4.
8. Attorney Fees
Capped at 15% of recovery under Ala. Code § 25-5-90 — one of the lowest attorney fee caps in the country; circuit court approval required.
9. Settlement Approval
Lump-sum settlements require court approval after a hearing (Ala. Code § 25-5-83).
10. Retaliation — Ala. Code § 25-5-11.1
Prohibits retaliatory discharge for filing a workers' comp claim.
This is legal information, not legal advice.