Are You Covered?

COVERAGE

1.  In January 1919, Alabama enacted the Alabama Workers Compensation Act (“the Act”).  The 

goal of the Act was to “define the liabilities of employers of workmen for injuries received by 

the workman while in the service of the employer.”  The goal of the Act was to establish a fair 

system of compensation for employees injured while in the service of employers in the State of 

Alabama and it attempted to accomplish that goal by establishing a “no fault” and “exclusive” 

remedy for the injured employee.

Who are covered employers and employees under the Act?  It is presumed that every employer 

and employee has accepted, and comes under, the articles of the Act unless otherwise specified 

in the Act.  This generally means that all employers and employees in the State of Alabama are 

covered under the Act unless they elect out of coverage.  Section 25-5-50(a) allows employers to 

opt out of the Act by written notification to each employee to its withdrawal from coverage and 

posting a notice conspicuously in the workplace that workers compensation insurance coverage 

is not available.  While this could be done, it is an absolute rarity because by choosing to elect 

out of coverage, an employer is exposed to liability for personal injury damages without any of 

its common law defenses, exposing it to expanded liability with little way to defend itself.  In 

other words, with the exception of the specific exclusions mention in the Act (i.e., domestic 

employees, employers of farm laborers, casual employers, employers who regularly employ less 

than five employees, and municipalities having a population of less than 2000) the presumption, 

again, is that in the Alabama workplace there is coverage under the Alabama Workers 

Compensation Act for almost all employees