Alabama Workers’ Compensation Benefits: Everything You Need to Know

Alabama business owners employ more than 2.2 million people, with jobs in the agricultural, manufacturing, health care, and tourism industries. But if you get hurt on the job, how hard is it to qualify for Alabama workers’ compensation benefits? And does every employer in this state have to carry workers’ compensation insurance?

Learn how to tell if you have coverage, what forms you need to fill out, filing deadlines, and what types of benefits may be available to you below.

Getting Alabama Workers Compensation Benefits: Key Takeaways

• All Alabama businesses with at least five employees must carry workers’ comp insurance. However, AL state law automatically excludes certain types of workers from this insurance coverage requirement.
• Your injury must come from a work-related accident while doing your job in order to qualify for any workers’ compensation benefits. That means you cannot file a claim for things like a car accident on the way to work or a fight with your coworker.
• Failing to report your workplace injury within five (5) days or seeing an unauthorized doctor could put your workers’ comp claim at risk.
• Alabama workers’ compensation law gives employers control over which doctor an injured employee can see for treatment. Going to your own doctor without prior approval means you may have to pay those medical bills yourself.
• If your job injury requires you to take time off work to recover, you may need pass a drug and alcohol test from your employer. Refusal to do so or a positive test result may make you lose your Alabama workers’ comp benefits.

Which Alabama Businesses Must Provide Workers’ Compensation Insurance Coverage for Employees?

Every employer in this state with five or more employees must provide workers’ comp coverage. Alabama workers’ compensation covers full-time and part-time employees as well as corporate officers. Your insurance coverage begins on your first day of employment at your job if your employer pays for this policy. However, state law also has some automatic exceptions to this coverage requirement (see our list below).

Alabama Workers Compensation Law Automatically Exempts Certain Types of Employees from Coverage

• Contractors
• Domestic workers employed in private homes
• Farm workers
• Federal and state government workers
• Licensed real estate agents
• Product demonstrators
• Seasonal, temporary, and casual employees
• Volunteers

Important: Alabama small business owners who hire no more than 4 total employees can opt out of workers' comp insurance coverage.

How to Apply for Alabama Workers’ Comp Benefits

Still not sure that your employer has workers’ compensation coverage? The online search portal for the Alabama Department of Labor lets you search for your employer by name before you file. Under current state law, you must file your claim within the two-year statute of limitations to qualify for any benefits.

1. Notify your employer about your workplace injury or illness and ask which doctor you can see for treatment.

For life-threatening workplace injuries only, go to the nearest ER for emergency medical treatment. Otherwise, you must tell your manager about your work accident:

• Verbally within 5 days of your injury or illness diagnosis date
• In writing within 90 days of your incident date

Important: Do not seek medical attention from any doctor your employer did not specifically approve first. If you do, then you may have to pay those medical costs our of your own pocket.

If you aren’t happy with the first doctor you see and need ongoing care, you can ask to switch providers. Your employer should give you a panel of 4 approved doctors to choose from when you make your request to change physicians.

2. Your employer then has 15 days to file a First Report of Injury form with the Alabama Department of Labor.

The insurance carrier then has 25 days to either approve or deny your request for workers’ compensation in Alabama.

3. If approved, you must miss three work shifts before you can qualify for lost wage benefits.

Those first 3 missed work shifts are always unpaid time off unless you are off the job for a minimum of 21 days. If that happens, then you will qualify for wage-loss benefits to cover those first 3 missed job shifts on day 22.

If you can return to work within 3 days, then Alabama workers compensation coverage only covers your medical care.

4. You may have to appear for an independent medical exam or pass a drug test to receive compensation for paid time off.

Refusal to do either of these as required by your employer or their insurance provider may result in permanent loss of your benefits.

5. Denied benefits? You have 15 days to appeal the decision in writing and request a hearing with the Hearings and Appeals Division.

This would be a good time to consult an experienced attorney about your Alabama workers’ compensation benefits claim.

What Alabama Workers’ Compensation Benefits are Available to Injured Workers?

An approved workers’ compensation claim can get you a variety of different benefits, including medical care and weekly payments. See which ones are possible from our list below, depending on your injury type and severity.

Medical Benefits

These unlimited benefits cover all reasonable and necessary medical costs and related expenses for treating work injuries, including:

• Hospital bills
• Physical therapy
• Doctor’s appointments
• Surgery
• Prescription and OTC medications required to manage your symptoms
• Travel expenses to receive necessary ongoing care, such as mileage, hotel rooms, etc.
• Tests and scans as needed to track your progress (i.e., X-rays, MRIs, CT scans, blood work, etc.)

Temporary Total Disability Benefits

If the doctor says you still cannot work once the required three-day waiting period ends, you may qualify for TTD benefits. TTD benefits equal 66 2/3% of your Average Weekly Wage (AWW) earned during the past year.

You can receive weekly temporary total disability benefits until you:

• Reach Maximum Medical Improvement (MMI) as determined by your treating physician, OR
• You return to work earning the same wage amount as you did prior to your job accident injury

Temporary Partial Disability Benefits

If the doctor says you’re partly disabled but can work again with certain restrictions (i.e., light duty), then you may qualify for TPD benefits. Temporary partial disability payments equal two-thirds of the difference between your pre-injury and post-injury wage amounts. You can receive TPD benefits for no more than 300 weeks total

Permanent Partial Disability Benefits

If you receive a permanent impairment rating once you reach Maximum Medical Improvement, then you may qualify for PPD benefits. This means you cannot perform the same job-related tasks you did before, but still work and earn some money. No one can receive more than 300 weeks of PPD benefits.

The number of weeks you can receive PPD benefits depends on which body part you lose the use of after your accident. Permanent impairment benefits range from 22 weeks for losing your 3rd finger to 400 weeks for two missing hands, feet, arms, or legs.

Permanent Total Disability Benefits

If you are permanently disabled after your job accident and can never work again, then you may qualify for PTD benefits. You may receive PTD benefits for life, so long as you provide sworn affidavits proving you have no employment elsewhere.

Death Benefits

If an employee dies on the job from a work-related cause, death benefits may be available to surviving family members. Alabama employers or their insurance providers may pay the following death benefits to eligible surviving dependents:

• Up to $6,500 for funeral costs and burial expenses
• If there are no dependents, the employer shall pay one lump-sum settlement of $7,500 to the deceased worker’s estate within 60 days
• No more than 500 weeks of death benefits paid to the deceased worker’s eligible dependents, paid weekly

If one dependent exists, the surviving spouse or child can receive benefits that equal 50% of the deceased worker’s AWW each week. For two or more dependents, death benefits equal 66 2/3% of the deceased worker’s AWW.

Talk to an Experienced Attorney for Free About Getting Workers’ Compensation in Alabama

There are many strict rules that make getting workers’ compensation in AL harder than you might expect. The fact that you must see a doctor your employer chooses and pass a drug and alcohol test may make you feel uneasy. Or maybe you have pre-existing health conditions that make it harder to prove your job injured you.

We can connect you with a skilled workers’ compensation attorney for a FREE case review. If the attorney feels you do not have a case, they will not accept you as a client.

Even better, all workers’ comp attorneys in our national network provide help on contingency. That means you pay $0 for legal representation if your case isn’t successful. And if you do win, Alabama workers’ comp lawyers cannot charge more than 15% of your final award in legal fees.

To get started, click the button below now to fill out your free evaluation or call us anytime toll free at 888-927-3080: