Workers comp rates and rules in Alabama
Alabama has 612 workers comp class codes with filed rates, a maximum weekly benefit of $1,170 (66.67% of average weekly wage), and a statute of limitations of 2 years. Verified 2026-05-08.
Class code rate comparison
The top 50 workers comp class codes filed in Alabama, sorted from cheapest to most expensive per $100 of payroll. Cross-state percentile shows where each code sits versus the same code in other states.
| State | Occupation | Code | Rate per $100 | vs peers | Source |
|---|---|---|---|---|---|
| Alabama | Real Estate Clerical | 8803 | $0.030 | 55% | view |
| Alabama | Hospice Care - All Other | 8871 | $0.030 | 53% | view |
| Alabama | Architects | 8603 | $0.050 | 80% | view |
| Alabama | Telemarketing Clerical | 8814 | $0.070 | 57% | view |
| Alabama | College Other Employees | 8820 | $0.070 | 55% | view |
| Alabama | Hospice Care | 8855 | $0.070 | 56% | view |
| Alabama | Furniture Salespersons | 8723 | $0.080 | 72% | view |
| Alabama | Medical Office Clerical | 8805 | $0.080 | 64% | view |
| Alabama | Clerical office | 8810 | $0.080 | 59% | view |
| Alabama | Telephone/Telegraph Companies | 8901 | $0.080 | 45% | view |
| Alabama | Telemarketing Clerical | 8814 M | $0.100 | 50% | view |
| Alabama | Clerical Telecommuter Employees | 8815 | $0.100 | 57% | view |
| Alabama | Medical Office Clerical | 8805 M | $0.110 | 56% | view |
| Alabama | Property Management NOC | 8737 | $0.120 | 50% | view |
| Alabama | Ambulance Service | 7402 | $0.130 | 94% | view |
| Alabama | Insurance Adjusters | 8734 | $0.130 | 50% | view |
| Alabama | Clerical Telecommuter Employees | 8815 M | $0.130 | 38% | view |
| Alabama | Jewelry Salespersons | 8721 | $0.140 | 41% | view |
| Alabama | Residential Property Management | 8738 | $0.140 | 21% | view |
| Alabama | Consulting Engineers | 8601 | $0.160 | 41% | view |
| Alabama | Salesperson, outside | 8742 | $0.160 | 55% | view |
| Alabama | Physician, non-surgical | 8832 | $0.180 | 52% | view |
| Alabama | Sound Recording | 4360 | $0.190 | 53% | view |
| Alabama | Property Management NOC | 8737 M | $0.190 | 50% | view |
| Alabama | Jewelry Stores | 8013 | $0.200 | 55% | view |
| Alabama | Advertising Sales | 8755 | $0.200 | 62% | view |
| Alabama | Insurance Adjusters | 8734 M | $0.220 | 50% | view |
| Alabama | College, non-faculty | 8868 | $0.220 | 41% | view |
| Alabama | Glassware Manufacturing | 4109 | $0.240 | 56% | view |
| Alabama | Residential Property Management | 8738 M | $0.260 | 31% | view |
| Alabama | Vessel Operations NOC | 7445 N | $0.270 | 44% | view |
| Alabama | RV Salespersons | 8748 | $0.270 | 36% | view |
| Alabama | Adult Day Care | 8856 | $0.270 | 35% | view |
| Alabama | Irrigation Systems Installation | 0766 N | $0.280 | - | view |
| Alabama | Interior Trim Installation | 5951 | $0.280 | 48% | view |
| Alabama | Boat Livery | 7453 N | $0.280 | 60% | view |
| Alabama | Barber, beauty parlor, hair stylist | 9586 | $0.280 | 64% | view |
| Alabama | Electrical Wiring Devices Manufacturing | 3681 | $0.290 | 23% | view |
| Alabama | Storage Battery Manufacturing | 4692 | $0.290 | 36% | view |
| Alabama | Stevedoring Operations | 7431 | $0.290 | 47% | view |
| Alabama | Outside Sales - All Other | 8799 | $0.290 | 44% | view |
| Alabama | Telecom Line Construction | 7610 | $0.310 | 55% | view |
| Alabama | Drug Manufacturing | 4511 | $0.320 | 67% | view |
| Alabama | Asbestos Goods Manufacturing | 4149 | $0.340 | 53% | view |
| Alabama | Livery Service | 7405 | $0.360 | 35% | view |
| Alabama | Retail Bakery | 8045 | $0.370 | 37% | view |
| Alabama | Landscape Gardening | 0771 N | $0.380 | 75% | view |
| Alabama | Glass Merchants | 4110 | $0.380 | 35% | view |
| Alabama | Oil & Gas Well Drilling | 4825 | $0.380 | 45% | view |
| Alabama | Railroad Shop Employees | 7421 | $0.400 | 55% | view |
Bottom quartile (cheap) Mid Top quartile (expensive) This state
Alabama coverage rules & benefits
Coverage threshold
Employers with 5 or more employees are required to carry workers' compensation insurance.
Max weekly benefit
$1,170 (66.67% of average weekly wage), effective 2024.
TTD weeks
300 weeks of temporary total disability benefits.
PPD weeks
300 weeks of permanent partial disability (whole-body schedule).
Death benefit
Up to $351,000 in fatal-claim death benefits to dependents.
Statute of limitations
2 years from injury date to file the claim.
1099 contractor treatment
Alabama uses the 'right to control' test to determine if a worker is an employee or independent contractor.
Owner exclusion
Allowed. Sole proprietor self-coverage: optional. LLC member self-coverage: optional.
Estimate your premium in Alabama
Pre-filled to Alabama. Pick your industry and payroll to see a real premium range from filed rates.
Estimate your workers comp premium
Pick your industry, state, and annual payroll. Range comes from real rate filings.
Estimated annual premium for Manufacturing in Alabama
$1,200to$48,100
Median: $6,300 · Rate range $0.240 to $9.62 per $100 payroll
Industry median across all states
$7,300
Cheapest states for Manufacturing
- Utah $0.490
- Kentucky $0.940
- Virginia $0.950
Most expensive
- California $4.74
- New Jersey $3.56
- Hawaii $2.94
Estimate based on 24 states of rate-filing data. Actual premium also reflects experience modifier, schedule credits, and carrier underwriting.
Filing & compliance in Alabama
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Step 1, Confirm coverage threshold
Employers with 5 or more employees are required to carry workers' compensation insurance.
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Step 2, Determine class code
Your premium uses the NCCI class code that best matches your operation. The wrong class code can cost 4-10x more or get reclassified at audit.
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Step 3, Get a quote (or use the state fund)
Private carriers like Travelers, Hartford, and Liberty Mutual write coverage in Alabama. Schedule credits up to 25% are typical for low-loss accounts.
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Step 4, Track payroll & subcontractors
General contractors can be held liable for injuries to employees of uninsured subcontractors. Keep certificates of insurance for every sub.
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Step 5, Annual audit
Carriers audit payroll within 90 days of policy expiration. Have payroll segregated by class code, job descriptions on file, and overtime properly excluded from rated payroll.
Alabama workers comp FAQs
Who has to carry workers compensation insurance in Alabama?
Employers with 5 or more employees are required to carry workers' compensation insurance.
What is the maximum weekly workers comp benefit in Alabama?
The current maximum weekly benefit in Alabama is $1,170 (effective 2024). Benefits are typically 66.67% of the average weekly wage, capped at the state maximum.
How long do I have to file a workers comp claim in Alabama?
The statute of limitations for filing a workers compensation claim in Alabama is 2 years from the date of injury. Notice to the employer is typically required within 30 days.
Are 1099 contractors covered by workers comp in Alabama?
Alabama uses the 'right to control' test to determine if a worker is an employee or independent contractor.
Can business owners exclude themselves from workers comp coverage in Alabama?
Yes, Alabama allows business owners (sole proprietors, partners, LLC members, corporate officers) to exclude themselves from coverage by filing the appropriate election form. Sole-proprietor self-coverage is not required; LLC member self-coverage is not required.
What is the penalty for not carrying workers comp in Alabama?
Failure to carry workers' compensation insurance is a misdemeanor, punishable by fines up to $1,000 and/or imprisonment up to one year, plus potential civil penalties.
When does my workers comp carrier audit my payroll in Alabama?
Alabama typically requires a payroll audit within 90 days of policy expiration. Final premium is reconciled to actual payroll, and class code allocation can shift based on the audit findings. Keep payroll segregated by class code and have job-duty documentation ready.
Am I liable for subcontractors' workers comp in Alabama?
General contractors can be held liable for injuries to employees of uninsured subcontractors.