Who can be excluded from a workers' comp policy in AL?

In Alabama, certain individuals and businesses can be excluded from workers' compensation (WC) coverage under specific conditions. Here’s a simple breakdown of the exclusion rules for workers' compensation in Alabama:

Who Can Be Excluded from Workers' Compensation in Alabama?

1. **Small Employers**:
- Employers with fewer than five regular employees are not required to carry workers' compensation insurance.
- Note: This does not apply to employers in the construction industry, who must provide coverage regardless of the number of employees.

2. **Corporate Officers**:
- Corporate officers can choose to be excluded from workers' compensation coverage.
- They must file a written election to be excluded with the Alabama Department of Labor.

3. **Sole Proprietors and Partners**:
- Sole proprietors and partners are not automatically covered but can elect to be included in workers' compensation coverage if they choose.
- They must file a written election to be included with the Alabama Department of Labor.

4. **Family Members**:
- Family members working in a family-owned business may be excluded, depending on their relationship to the business owner and whether they are considered regular employees. If a family member owns part of the business and works there, they can generally be excluded from workers' compensation coverage. If a family member works in the business but does not have any ownership stake, the ability to exclude them may depend on their role and whether they are considered a regular employee.

WC coverage in this state is mandatory for 5 or more W2 non-owner employees.

Always check with the Alabama Department of Labor HERE or with a legal expert to ensure you are following all the rules correctly.