Workers' Compensation Rates in Alabama (2026)
Last verified: 2026-06-02 · Reviewed against NCCI and state rating-bureau filings — how we verify
State Overview
WC Requirement
Mandatory
Minimum Employees
5
Effective Date
2026-01-01
Alabama requires workers' comp for employers with five or more employees. Rates are filed through NCCI.
Average Rate (All Class Codes)
$5.72
per $100 of payroll
Least Expensive Class Codes
- 8815 — Bank - All Employees$0.16
- 8865 — Court Reporter$0.16
- 8801 — Credit Union - All Employees$0.16
Most Expensive Class Codes
- 5551 — Roofing - All Employees$27.00
- 5040 — Iron/Steel Erection - Frame$26.46
- 5606 — Roofing Contractor$24.30
Understanding Alabama Workers' Comp Rates
Alabama is an NCCI state. NCCI files voluntary-market loss costs and assigned-risk rates with the Alabama Department of Insurance, which reviews and approves them — the Department held a public hearing on the most recent filing in October 2025. NCCI's 2026 Alabama filing proposed a 4.5% decrease to voluntary-market loss costs and a 3.6% decrease to assigned-risk rates, with an anticipated effective date of March 1, 2026. Claims and disputes are administered separately by the Workers' Compensation Division of the Alabama Department of Labor, under the Alabama Workers' Compensation Act (Ala. Code Title 25, Chapter 5).
Because Alabama is a competitive advisory-loss-cost state, NCCI's filed number is a starting point. Each carrier files its own loss-cost multiplier (LCM) with the Department of Insurance, so two Alabama insurers can quote the same class code at different prices. Your premium is the class-code loss cost × LCM × experience modification factor × payroll/100, plus or minus schedule rating credits or debits. The 4.5% statewide change is an average across all class codes; your own code may have moved more or less.
How Alabama Class Codes and Rates Are Set
Alabama uses the standard NCCI Scopes Manual classification system — the same national four-digit codes that apply in most states (8810 Clerical Office Employees, 8742 Outside Sales, 9082 Restaurant NOC, 5183 Plumbing NOC, 5403 Carpentry NOC, and roughly 600 others). The scope language is national; the loss-cost dollar attached to each code is Alabama-specific and reflects Alabama claim experience. NCCI files the loss costs with the Alabama Department of Insurance, which reviews them — after a public hearing on the most recent filing in October 2025 — before insurers apply their multipliers.
Price competition in Alabama happens at the loss-cost multiplier, not the filed loss cost. Your premium is the class-code loss cost × LCM × experience modification × payroll/100, plus or minus schedule rating. With the proposed 4.5% voluntary-market reduction effective March 1, 2026, many class codes are paying less than in the prior year — but the LCM you are quoted and your experience modification factor still determine your final price.
Who Must Carry Coverage in Alabama
Alabama requires workers' compensation coverage for employers that regularly employ five or more workers under Ala. Code §25-5-50. Alabama counts all employees toward that threshold — full-time, part-time, corporate officers, and LLC members — so a business crosses the line based on total headcount, not just full-time staff. Employers with fewer than five employees are not required to carry coverage but may elect to, and many do to secure exclusive-remedy protection.
Because officers and LLC members count toward the five-employee threshold, small closely-held companies can be required to carry coverage sooner than owners expect. Sole proprietors and partners are generally not counted as employees on themselves. The five-employee rule applies across the board in Alabama — there is no separate one-employee construction trigger as in some neighboring states, though independent contractors in residential construction with fewer than five employees may file an affidavit of exemption with the Workers' Compensation Division. Operating without required coverage is costly: Alabama can assess penalties of up to $1,000 per day, and an uninsured employer loses exclusive-remedy protection, exposing it to direct suits from injured workers. The Workers' Compensation Division of the Department of Labor enforces the mandate.
Sources
- NCCI — Summary of the Proposed Alabama Workers Compensation Loss Cost Filing (4.5% voluntary-market decrease, effective March 1, 2026) (retrieved 2026-06-02)
- Insurance Journal — Florida, Alabama Hold Hearings on NCCI Workers' Comp Rate Decreases (Alabama DOI public hearing, October 2025) (retrieved 2026-06-02)
- Code of Alabama §25-5-50 — Applicability and exemptions (five-or-more-employee coverage threshold; corporate officer and independent-contractor rules) (retrieved 2026-06-02)
All Class Codes & Rates in Alabama
| Code | Phraseology | Hazard Group | Rate per $100 |
|---|---|---|---|
| 8823 | Accountant - CPA | A | $0.19 |
| 8862 | Advertising Agency | A | $0.24 |
| 7403 | Aircraft Operation - NOC | E | $9.99 |
| 7605 | Alarm Installation or Repair | D | $5.13 |
| 5047 | Aluminum Installation | E | $8.37 |
| 8836 | Ambulance Service - All Employees | C | $5.94 |
| 7398 | Ambulette/Medical Transport | D | $5.94 |
| 9067 | Amusement Park - Mechanical Rides | D | $5.67 |
| 9016 | Amusement Park or Exhibition Operation & Drivers | D | $4.43 |
| 7520 | Amusement Ride Operation | D | $6.21 |
| 8831 | Animal Hospital - Veterinary | C | $2.43 |
| 8861 | Architect or Engineer - Consulting | B | $0.43 |
| 5473 | Asphalt Paving | F | $11.07 |
| 9625 | Assisted Living Facility | D | $4.86 |
| 9182 | Athletic Teams - Amateur | E | $7.83 |
| 9180 | Athletic Teams - Professional | F | $13.50 |
| 8820 | Attorney - All Employees & Clerical | A | $0.22 |
| 8803 | Auditing, Accounting or Management Consulting | A | $0.22 |
| 8046 | Auto Accessories Store | B | $1.35 |
| 5188 | Automatic Sprinkler Installation | E | $8.48 |
| 8393 | Automobile Body Repair & Drivers | C | $7.83 |
| 8748 | Automobile Dealer - All Employees | D | $4.05 |
| 3821 | Automobile Recycling & Drivers | D | $7.34 |
| 8380 | Automobile Service or Repair Center & Drivers | D | $4.86 |
| 7225 | Automobile Towing & Drivers | E | $9.18 |
| 7422 | Aviation - Ground Crew | E | $7.83 |
| 2003 | Bakery | C | $3.78 |
| 3724 | Bakery - Manufacturing | D | $4.59 |
| 8815 | Bank - All Employees | A | $0.16 |
| 8855 | Banks and Trust Companies - All Employees | A | $0.18 |
| 9586 | Barber Shop or Beauty Parlor | C | $1.62 |
| 7337 | Boat Building - Metal | F | $10.53 |
| 7335 | Boat Building - Wood | E | $8.10 |
| 3027 | Boiler Manufacturing | E | $8.37 |
| 8072 | Book Store | A | $0.54 |
| 2157 | Bottling | C | $3.51 |
| 9071 | Bowling Alley - All Employees | C | $2.65 |
| 9070 | Bowling Center - All | C | $2.70 |
| 2065 | Brewery | C | $3.51 |
| 9650 | Building Inspection | C | $2.43 |
| 8232 | Building Material Yard & Drivers | E | $6.21 |
| 8058 | Building Materials Dealer | D | $5.67 |
| 9015 | Building Operation - All Other Employees | C | $3.35 |
| 9012 | Building or Property Management - Property Managers and Leasing Agents & Clerical, Salespersons | B | $0.81 |
| 8385 | Bus Co - Garage Employees | E | $8.75 |
| 7382 | Bus Company - All Employees | D | $8.10 |
| 8850 | Bus/Taxi - Dispatching | A | $0.49 |
| 5148 | Cabinet Manufacturing & Install | D | $6.48 |
| 2812 | Cabinet/Wood Products Manufacturing | D | $6.75 |
| 9055 | Camps - Day/Overnight | C | $3.51 |
| 2095 | Candy Manufacturing | C | $3.24 |
| 2111 | Cannery | D | $5.67 |
| 9602 | Car Wash | C | $2.70 |
| 5645 | Carpentry - Detached One or Two Family Dwellings | F | $13.50 |
| 5432 | Carpentry - Detached One/Two Family | E | $9.99 |
| 5436 | Carpentry - Finish Detached | D | $7.02 |
| 5404 | Carpentry - Install Cabinets | D | $7.56 |
| 5437 | Carpentry - Installation of Cabinet Work or Interior Trim | F | $15.39 |
| 2802 | Carpentry - Shop Only | D | $5.94 |
| 5403 | Carpentry NOC | G | $12.15 |
| 9536 | Carpet Cleaning | C | $3.24 |
| 9519 | Catering NOC | C | $3.78 |
| 5020 | Ceiling Installation | E | $9.18 |
| 9610 | Cemetery - All | D | $3.78 |
| 5348 | Ceramic Tile, Indoor Stone, Marble, or Mosaic Work | E | $5.94 |
| 2131 | Cereal Manufacturing | C | $3.13 |
| 7405 | Charter Aircraft | F | $13.77 |
| 8826 | Chiropractic Office | B | $0.97 |
| 8812 | Clerical - Drafting Employees | A | $0.24 |
| 8810 | Clerical Office Employees | A | $0.27 |
| 8871 | Clerical Telecommuter Employees | B | $0.32 |
| 2501 | Clothing Manufacturing | B | $2.43 |
| 8008 | Clothing or Wearing Apparel Store - Retail | C | $2.00 |
| 9061 | Club NOC - All Employees | C | $3.02 |
| 8844 | Collection Agency | A | $0.24 |
| 8868 | College or University - Professional Employees | B | $0.49 |
| 7380 | Commercial Drivers | D | $9.18 |
| 8859 | Computer Programming or Software Development | A | $0.19 |
| 5201 | Concrete Block Manufacturing | E | $8.64 |
| 5213 | Concrete Construction NOC | F | $10.53 |
| 5214 | Concrete NOC - Poured | F | $11.07 |
| 5221 | Concrete or Cement Work - Floors, Driveways, Yards | F | $9.61 |
| 5070 | Concrete Products Manufacturing | E | $7.02 |
| 5215 | Concrete Work | F | $12.42 |
| 5222 | Concrete/Cement - Floors | E | $8.91 |
| 8227 | Construction Material - Used | D | $6.21 |
| 8019 | Convenience Store | C | $2.43 |
| 7715 | Corrections Officers | G | $9.99 |
| 9558 | Courier/Document Delivery | C | $3.51 |
| 7719 | Court Employees | B | $1.35 |
| 8865 | Court Reporter | A | $0.16 |
| 2070 | Creamery/Dairy Products | C | $4.05 |
| 8801 | Credit Union - All Employees | A | $0.16 |
| 8805 | Credit Union/Savings | A | $0.16 |
| 9059 | Day Spa | B | $1.62 |
| 8854 | Daycare Center | C | $2.70 |
| 8822 | Dental Laboratory | B | $0.81 |
| 8824 | Dental Office - All Employees | B | $0.59 |
| 8039 | Department Store - Retail | C | $2.16 |
| 2102 | Distillery | C | $3.35 |
| 5108 | Door/Window Installation | D | $6.75 |
| 5152 | Drilling NOC | F | $14.58 |
| 8047 | Drug Store | B | $1.03 |
| 2688 | Dry Cleaning | C | $3.51 |
| 8866 | Election Campaign | B | $0.92 |
| 7539 | Electric Light/Power Companies | F | $11.34 |
| 3082 | Electrical Apparatus Manufacturing | D | $4.86 |
| 5140 | Electrical Installation - Interior | D | $5.67 |
| 5193 | Electrical Wiring - Alarm | D | $5.94 |
| 5190 | Electrical Wiring - Within Buildings | E | $6.75 |
| 9653 | Elevator Inspection | C | $2.16 |
| 5160 | Elevator Installation | F | $11.34 |
| 5162 | Elevator Service/Maintenance | E | $8.91 |
| 8858 | Employment Agency | A | $0.22 |
| 7711 | EMT/Paramedics | F | $8.10 |
| 6217 | Excavation NOC | F | $11.66 |
| 8809 | Executive Officers NOC - Not Foremen, Workers or Salespersons | A | $0.22 |
| 0035 | Farm - Dairy | E | $9.45 |
| 0005 | Farm - Field Crops | E | $10.26 |
| 0016 | Farm - Livestock | F | $11.07 |
| 0050 | Farm - Orchard or Grove | E | $8.42 |
| 8116 | Farm Machinery Dealer - All Operations & Drivers | C | $3.51 |
| 8841 | Financial Advisor | A | $0.18 |
| 7710 | Firefighters and Drivers | D | $7.02 |
| 2161 | Fish Processing | E | $7.02 |
| 8032 | Florist - Retail | B | $1.24 |
| 2130 | Flour Milling | D | $4.59 |
| 7350 | Freight Handling | E | $7.83 |
| 2143 | Fruit Processing | D | $4.32 |
| 9620 | Funeral Directors - All Employees | C | $1.89 |
| 2883 | Furniture Manufacturing | D | $5.94 |
| 8293 | Furniture Moving & Storage, Drivers | E | $5.13 |
| 5146 | Furniture or Fixtures Installation - Portable NOC | D | $7.29 |
| 8044 | Furniture Store - Wholesale or Retail & Drivers | C | $2.97 |
| 7590 | Garbage/Ash Collection | F | $10.53 |
| 2913 | Glass Manufacturing | E | $8.10 |
| 2915 | Glass Merchant | D | $5.67 |
| 5462 | Glazier | E | $9.18 |
| 9056 | Golf Club | C | $2.70 |
| 8811 | Government Clerical | A | $0.24 |
| 8304 | Grain Elevator | E | $7.56 |
| 2041 | Grain Milling | D | $4.86 |
| 8006 | Grocery Store - Retail | C | $2.70 |
| 9585 | Hair Salon | B | $1.35 |
| 8010 | Hardware Store - Wholesale or Retail | C | $2.81 |
| 5137 | Heating Equipment Installation | D | $6.21 |
| 5185 | Heating System Installation | D | $5.94 |
| 5537 | Heating, Ventilation, Air Conditioning and Refrigeration | E | $6.21 |
| 8851 | Home for Aged - All | D | $5.67 |
| 8835 | Home Health Care Services | C | $4.48 |
| 9040 | Hospital - All Other Employees | B | $5.94 |
| 8833 | Hospital - Professional Employees | C | $3.08 |
| 9058 | Hotel - Restaurant Employees | C | $3.78 |
| 9052 | Hotel NOC - All Other Employees & Drivers | C | $3.94 |
| 9529 | House Cleaning | C | $3.51 |
| 9033 | Housing Authority | B | $1.62 |
| 2039 | Ice Cream Manufacturing | C | $3.78 |
| 8215 | Ice Dealer | C | $3.24 |
| 8203 | Ice Manufacturing | D | $4.86 |
| 5479 | Insulation Work | E | $8.10 |
| 8845 | Investigator/Detective | C | $2.43 |
| 8840 | Investment Company | A | $0.16 |
| 5038 | Iron Doors/Gates Installation | F | $15.66 |
| 5057 | Iron or Steel Erection - NOC | G | $18.63 |
| 5102 | Iron or Steel Erection - Structural | G | $19.98 |
| 5069 | Iron/Steel - NOC | G | $22.68 |
| 5059 | Iron/Steel - Ornamental | F | $13.23 |
| 5040 | Iron/Steel Erection - Frame | G | $26.46 |
| 8106 | Iron/Steel Merchant | D | $5.94 |
| 6229 | Irrigation Works - All Operations | E | $7.02 |
| 9014 | Janitorial Services - By Contractor | C | $4.59 |
| 8013 | Jewelry Store | B | $0.92 |
| 8263 | Junk Dealer | D | $5.94 |
| 0917 | Landscape Gardening - NOC | D | $5.67 |
| 5443 | Lathing | E | $9.45 |
| 2660 | Laundry NOC | C | $3.78 |
| 2586 | Leather Goods Manufacturing | C | $3.24 |
| 9034 | Library - All Employees | A | $0.70 |
| 7716 | Lifeguards | D | $4.05 |
| 7317 | Longshore Workers | G | $20.52 |
| 8061 | Lumber Dealer | D | $6.21 |
| 3632 | Machine Shop NOC | D | $5.13 |
| 3030 | Machinery Manufacturing | D | $5.94 |
| 3685 | Machinist NOC | D | $5.51 |
| 7327 | Marine Transportation | F | $13.50 |
| 5029 | Masonry - Decorative | E | $10.26 |
| 5027 | Masonry - Fireproof | F | $11.88 |
| 5028 | Masonry - Stone | F | $13.77 |
| 5022 | Masonry NOC | F | $11.34 |
| 8031 | Meat Market - Retail | C | $2.97 |
| 2001 | Meat Packing | F | $9.45 |
| 8033 | Meat, Fish or Poultry Dealer - Retail | C | $3.51 |
| 8021 | Meat, Fish or Poultry Dealer - Wholesale | C | $2.70 |
| 8838 | Medical Lab | B | $0.81 |
| 7360 | Messenger Service | C | $3.78 |
| 3581 | Metal Stamping - NOC | E | $6.64 |
| 9410 | Municipal, Township, County or State Employees - NOC | C | $3.78 |
| 9587 | Nail Salon | B | $1.08 |
| 8860 | Newspaper - Delivery | C | $4.05 |
| 8869 | Newspaper or Magazine Publishing - All Employees | B | $0.38 |
| 8807 | Newspaper Publishing | B | $0.92 |
| 0042 | Nursery Employees | E | $6.75 |
| 9046 | Nursing - Home/Visiting | D | $6.21 |
| 9049 | Nursing Home - All | D | $5.94 |
| 8829 | Nursing Home - All Employees | C | $5.67 |
| 5191 | Office Machine Installation, Inspection, Adjustment, or Repair | E | $4.59 |
| 8825 | Optometry Office | A | $0.43 |
| 8742 | Outside Sales Personnel | B | $0.59 |
| 8055 | Packaging - Contract - Retail Size Packages | C | $2.70 |
| 8037 | Paint Store | B | $1.08 |
| 5474 | Painting NOC & Shop Operations, Drivers | E | $8.10 |
| 7721 | Park Rangers | D | $3.78 |
| 8821 | Patent/Copyright Attorney | A | $0.22 |
| 4361 | Pest Control Services | D | $4.86 |
| 9549 | Pet Grooming | C | $1.89 |
| 8099 | Pet Store | B | $1.24 |
| 8846 | Pharmaceutical Sales | B | $0.59 |
| 8839 | Pharmacy - Retail | B | $0.97 |
| 7600 | Phone/Telegraph Installation | E | $7.56 |
| 8832 | Physician & Clerical | B | $0.49 |
| 2110 | Pickle Manufacturing | C | $3.08 |
| 7313 | Pier/Wharf Operation | F | $12.15 |
| 5480 | Plastering NOC | E | $7.83 |
| 8111 | Plumber - Commercial | E | $6.48 |
| 5183 | Plumbing NOC | E | $7.29 |
| 7723 | Police Officers - Mounted | F | $11.61 |
| 7720 | Police Officers and Drivers | D | $6.21 |
| 8816 | Post Office | C | $2.97 |
| 2002 | Poultry Processing | F | $9.18 |
| 3076 | Printing - Offset or Digital | D | $3.35 |
| 8843 | Psychiatric Hospital | D | $4.86 |
| 8015 | Quick Printing | B | $1.08 |
| 8857 | Radio Station - Clerical | A | $0.19 |
| 7610 | Radio/TV Broadcasting | B | $1.35 |
| 7855 | Railroad Operation | E | $8.10 |
| 8856 | Real Estate Agency - All Employees | C | $1.30 |
| 8817 | Real Estate Management | B | $1.35 |
| 9077 | Recreation Center | C | $2.70 |
| 3060 | Refrigerator Manufacturing | D | $5.13 |
| 8849 | Research Lab - Analytical | B | $1.19 |
| 9079 | Restaurant - Fast Food | C | $3.51 |
| 9083 | Restaurant - Fast Food - Including Delivery | D | $4.43 |
| 9082 | Restaurant NOC | D | $4.05 |
| 8045 | Retail Store - Cannabis/Dispensary | C | $2.32 |
| 8017 | Retail Store NOC | C | $2.27 |
| 5551 | Roofing - All Employees | G | $27.00 |
| 5606 | Roofing Contractor | G | $24.30 |
| 7724 | Sanitation Workers | F | $9.18 |
| 9101 | School - All Employees | B | $2.00 |
| 9008 | Schools - Vocational | C | $2.97 |
| 9060 | Senior Center | B | $1.89 |
| 5538 | Sheet Metal Work - HVAC Ductwork | E | $7.34 |
| 8090 | Shoe Store | A | $0.59 |
| 5119 | Siding Installation | E | $8.10 |
| 9554 | Sign Installation, Maintenance, Repair, Removal or Replacement NOC - Away From Shop & Drivers | F | $8.91 |
| 9072 | Skating Rink | C | $2.97 |
| 8864 | Social Services Organization | B | $1.35 |
| 2105 | Soft Drink Manufacturing | C | $2.97 |
| 8078 | Sporting Goods Store | B | $1.35 |
| 8279 | Stable/Riding Academy | D | $5.67 |
| 7309 | Stevedoring | G | $19.98 |
| 5506 | Street/Road Construction | F | $12.69 |
| 5507 | Street/Road Construction - Clearing | F | $10.80 |
| 8804 | Substance Use Disorder Recovery Homes | C | $4.86 |
| 2021 | Sugar Manufacturing | D | $4.59 |
| 5223 | Swimming Pool Construction | F | $9.99 |
| 9064 | Swimming Pool Operation | C | $2.97 |
| 2623 | Tanning | D | $5.94 |
| 7370 | Taxi/Rideshare | D | $7.29 |
| 7390 | Taxicab Company - All Employees | D | $8.42 |
| 8814 | Telephone Company - Clerical | A | $0.19 |
| 5037 | Tile Roofing | G | $23.76 |
| 2121 | Tobacco Manufacturing | C | $2.70 |
| 7229 | Trucking - Hazmat | G | $15.93 |
| 7228 | Trucking - Local Hauling Only | D | $9.45 |
| 7219 | Trucking - Long Haul | E | $12.42 |
| 7232 | Trucking - Mail, Parcel or Package Delivery - Under Contract With USPS | F | $11.34 |
| 7231 | Trucking - Mail, Parcel, or Package Delivery | D | $9.83 |
| 7202 | Trucking - NOC | E | $10.26 |
| 7227 | Trucking - Refrigerated | E | $11.07 |
| 8847 | Trust Company | A | $0.16 |
| 9522 | Upholstery | C | $2.97 |
| 9068 | Veterans Home | D | $4.59 |
| 8842 | Veterinary Office - All Employees | C | $1.19 |
| 5180 | Water Main Construction | F | $12.96 |
| 3365 | Welding or Cutting NOC | E | $8.91 |
| 8018 | Wholesale Store NOC | C | $2.59 |
| 5196 | Wiring - Fire Detection Systems | D | $5.13 |
| 2841 | Woodworking NOC | D | $6.21 |
| 2286 | Wool Processing | C | $3.40 |
| 8802 | Writer/Author | A | $0.22 |
| 2220 | Yarn/Thread Manufacturing | C | $3.24 |
| 9063 | YMCA, YWCA, or Health Club - All Employees | C | $3.08 |
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