Key Takeaways
- Alabama workers' compensation is mandatory for employers with 5 or more employees
- Workers' compensation provides exclusive remedy - employees cannot sue employer for negligence
- Benefits include medical care, temporary total disability (66 2/3% of wages), and permanent disability
- Employers can obtain coverage from private insurers, self-insure with approval, or use assigned risk pool
- Contributory negligence does NOT apply to workers' compensation claims
Alabama Workers' Compensation Insurance
Alabama has specific workers' compensation requirements that differ from its contributory negligence rules.
Coverage Requirements
Alabama workers' compensation is mandatory for most employers:
Who Must Carry Coverage
| Employer Type | Requirement |
|---|---|
| 5+ Employees | Coverage REQUIRED |
| Fewer than 5 Employees | Coverage optional |
| Construction Industry | Special rules may apply |
| Agricultural | Generally exempt |
| Domestic Workers | Generally exempt |
Exam Tip: Alabama requires workers' comp for employers with 5 or more employees. This is different from states requiring coverage for all employers.
Exclusive Remedy Doctrine
Workers' compensation provides exclusive remedy:
How It Works
- Employee receives workers' comp benefits
- Employee cannot sue employer for negligence
- Trade-off: guaranteed benefits vs. no lawsuit option
- Exception: intentional harm by employer
Key Point: Contributory Negligence
Unlike regular negligence claims:
- Contributory negligence does NOT apply to workers' comp
- Employee fault does not bar benefits
- Benefits paid regardless of who was at fault
- Only exception: willful misconduct or intoxication
Coverage Options
Alabama employers have several options:
How to Obtain Coverage
| Option | Description |
|---|---|
| Private Insurance | Purchase from admitted insurer |
| Self-Insurance | Large employers with ALDOI approval |
| Assigned Risk Pool | For hard-to-place employers |
| Group Self-Insurance | Qualified employer groups |
Benefits
Workers' compensation provides these benefits:
Benefit Types
| Benefit | Description |
|---|---|
| Medical Care | All reasonable medical treatment |
| Temporary Total Disability (TTD) | 66 2/3% of wages |
| Temporary Partial Disability (TPD) | Partial wage replacement |
| Permanent Partial Disability (PPD) | Based on impairment rating |
| Permanent Total Disability (PTD) | Ongoing benefits for total disability |
| Death Benefits | To dependents |
Benefit Calculations
- TTD: 66 2/3% of average weekly wage
- Maximum weekly benefit: Set by statute annually
- 3-day waiting period before income benefits
- Medical benefits have no limit
Duration
- TTD: Until return to work or maximum medical improvement
- PPD: Based on schedule (weeks per body part)
- PTD: Potentially lifetime
Rate Regulation
Alabama workers' compensation rates:
NCCI
- Alabama uses NCCI (National Council on Compensation Insurance) rates
- Base rates set by classification
- Experience modification affects individual employer rates
- Loss-sensitive rating plans available
Claims Process
Filing a Claim
- Employee reports injury to employer
- Employer notifies insurer
- Insurer investigates and determines compensability
- Benefits paid if claim approved
- Disputes resolved through Alabama Department of Labor
How many employees must an Alabama employer have before workers' compensation is required?
What percentage of wages does Alabama workers' compensation temporary total disability (TTD) pay?
Does contributory negligence apply to Alabama workers' compensation claims?
What does the exclusive remedy doctrine mean in workers' compensation?
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