# Alabama — Workers' compensation insurance requirements by US state: employee thresholds, who counts, and industry exceptions

For Alabama, employee threshold is five (5) employees; who counts toward the threshold is full-time or part-time and including officers of a corporation; industry-specific rules is Employers of domestic employees, farm laborers, or casual employees and municipalities having a population of less than 2,000 (according to the most recent federal census) are not required to provide coverage but can elect to be covered by the provisions of the Alabama Workers' Compensation Law; issuing authority is Alabama Department of Labor, Workers' Compensation Division; notes is Employers in the business of constructing or assisting on-site in the construction of new single-family, detached residential dwellings are subject to coverage requirements regardless of the general threshold, recorded from its source on 2026-08-12.

- **State:** Alabama _(our reading, not quoted from the source)_
- **Employee threshold:** five (5) employees _(verified: appears in the quote below)_
- **Who counts toward the threshold:** full-time or part-time and including officers of a corporation _(verified: appears in the quote below)_
- **Industry-specific rules:** Employers of domestic employees, farm laborers, or casual employees and municipalities having a population of less than 2,000 (according to the most recent federal census) are not required to provide coverage but can elect to be covered by the provisions of the Alabama Workers' Compensation Law.
- **Issuing authority:** Alabama Department of Labor, Workers' Compensation Division
- **Notes:** Employers in the business of constructing or assisting on-site in the construction of new single-family, detached residential dwellings are subject to coverage requirements regardless of the general threshold.

## What the source says

> If you regularly employ less than five (5) employees, full-time or part-time and including officers of a corporation in any one business, other than the business of constructing or assisting on-site in the construction of new single-family, detached residential dwellings, the Alabama Workers’

## Source

- https://adol.alabama.gov/insurance-requirement-information/

Last verified: 2026-08-12. Review by: 2027-02-08.
Part of [Workers' compensation insurance requirements by US state: employee thresholds, who counts, and industry exceptions](https://referencesource.org/workers-comp-coverage-thresholds-by-state/).