Short Answer:
In Alabama, workers’ compensation typically pays two-thirds (⅔ or 66.67%) of your average weekly wage, subject to state-mandated minimum and maximum limits. Benefits may also include medical care, disability payments, and death benefits, depending on the nature of the injury, but they will not compensate for a full salary. If you face challenges recovering the benefits you are potentially eligible for or if a third party is responsible for your accident, schedule a free consultation with a work injury lawyer today.
Key Takeaways:
- Injured workers usually receive 2/3 of their average weekly wage.
- Payments are subject to minimum and maximum weekly limits set by Alabama law.
- There’s a 3-day waiting period before benefits begin, unless the disability lasts more than 21 days.
- Includes temporary total disability (TTD), permanent partial disability (PPD), permanent total disability (PTD), and death benefits.
- Workers must file a claim within 2 years from the date of injury or last compensation payment.
- Benefits last as long as you are eligible, though some types have specific time limits.
- Workers’ comp does not cover 100% of lost wages.
- An attorney from Floyd Hunter Injury Law can help ensure correct benefit calculation and timely filing.
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How Are Workers’ Comp Benefits Calculated in Alabama?
In Alabama, workers’ compensation benefits are typically calculated as two-thirds (66.67%) of your average weekly wage. This wage is based on your earnings before the injury and includes overtime and certain bonuses if they were a regular part of your income.
To determine your benefit amount, your employer or their insurance carrier will look at your average weekly earnings over the 52 weeks prior to your injury. If you haven’t worked that long, they’ll use the time you have worked to create an average.
Let’s say your average weekly wage over the past year was $900. To calculate your workers’ comp wage replacement:
$900 × 66.67% = $600
Your weekly benefit would be $600, assuming it falls within the state’s minimum and maximum benefit limits below.
These calculations only apply to wage replacement. Medical care is covered separately and paid in full by your employer’s workers’ comp insurance as long as you follow the proper process and see an authorized provider.
Maximum and Minimum Weekly Benefits
While Alabama workers’ comp generally pays two-thirds of your average weekly wage, the state sets a minimum and maximum limit on how much you can receive each week. These limits ensure payments remain within a defined range, regardless of income level.
As of July 1, 2024, the weekly benefit limits are:
- Maximum compensation: $1,130.00 per week
- Minimum compensation: $311.00 per week
This means that even if your calculated two-thirds wage is higher or lower than those amounts, your actual payment will be adjusted to fit within this range. These limits are updated annually based on statewide wage trends, so it’s important to check the current numbers if you’re filing a claim.
Is There a Waiting Period for Benefits?
Alabama law imposes a 3-day waiting period before workers’ compensation wage benefits begin. This means that if your injury keeps you out of work for just a few days, you won’t receive wage replacement for those initial days.
However, there’s an important exception: if you have a disability that lasts more than 21 days, the insurance company is required to pay you retroactively for the first 3 days. In other words, once your time off exceeds 3 weeks, you should receive payment for the entire period of missed work, including those first few days.
This rule doesn’t apply to medical benefits—those are covered immediately, as long as you’re treated by an approved provider.
Types of Benefits Available to Injured Workers
Workers’ compensation in Alabama provides different types of benefits depending on the severity and long-term impact of your injury. The type of disability you experience will determine how your payments are structured and how long they may last.
- Temporary Total Disability (TTD) benefits apply when your injury prevents you from working at all for a temporary period. During this time, you’ll typically receive two-thirds of your average weekly wage, up to the state maximum. TTD benefits continue until your doctor determines that you’ve reached maximum medical improvement (MMI) or are able to return to work.
- Permanent Partial Disability (PPD) is for injuries that result in lasting impairment but don’t completely prevent you from working. Compensation depends on the body part affected and the extent of permanent loss. Alabama uses a scheduled injury system for certain types of injuries, which assigns fixed values to different body parts.
- Permanent Total Disability (PTD) benefits are awarded if you’re permanently unable to perform any type of gainful employment. These benefits are more significant and may be paid for life, depending on the nature of the injury and supporting medical documentation.
Because of the lifelong impact and the potential for extensive future medical care, it’s especially important to consult a workers’ comp lawyer if you may qualify for PTD. An experienced attorney can help ensure that all necessary past and future medical costs, along with other long-term needs, are properly documented and pursued.
In some cases, injured workers may also qualify for vocational rehabilitation, which provides job retraining or placement services if you’re unable to return to your previous role. This can help you transition into a new type of work that fits your physical capabilities.
Death Benefits for Families
When a worker dies as a result of a job-related injury or illness, Alabama’s workers’ compensation system provides death benefits to help support surviving dependents during a difficult time.
Eligible dependents typically include a surviving spouse, minor children, and other individuals who relied financially on the worker. These benefits are meant to partially replace the income the worker would have provided and can offer some stability in the wake of a sudden loss.
The amount paid is generally based on a percentage of the worker’s average weekly wage, often 50% to 66.67%, depending on how many dependents are eligible. Death benefits are subject to the same weekly minimum and maximum limits as other types of workers’ comp payments.
In addition to wage replacement, workers’ compensation in Alabama also covers burial expenses, up to $6,500. These costs are paid directly to the funeral provider or the family handling arrangements.
The duration of death benefits varies. Spouses may receive benefits for a set period or until remarriage, while children may receive payments until they reach a certain age, typically 18, or 22 if they are full-time students. Benefits may also continue for children with disabilities beyond these age limits. However, under Alabama law, the total duration of death benefits may not exceed 500 weeks.
How Long Does Workers’ Comp Last in Alabama?
The length of time you can receive workers’ compensation benefits in Alabama depends on the type and severity of your injury.
- If you’re receiving Temporary Total Disability (TTD) benefits, payments will continue as long as you’re medically unable to work and your doctor confirms that your recovery is ongoing. Once you reach maximum medical improvement (MMI)—the point at which your condition is stable and unlikely to improve further—TTD benefits typically end.
- If your injury leads to Permanent Partial Disability (PPD), benefits are paid for no more than 300 weeks. Each body part has a corresponding maximum number of compensable weeks. For unscheduled injuries, such as to the back or internal organs, the benefit period may be determined by loss of earning capacity.
- In rare cases where an injury results in Permanent Total Disability (PTD)—meaning you’re unable to work in any capacity—benefits can continue for the rest of your life, as long as medical documentation supports the ongoing disability.
To keep receiving benefits, you may be required to provide updated medical evaluations showing that you’re still unable to return to work or that your condition has not improved.
Can an Attorney Help With My Workers’ Comp Claim?
Yes—especially if your claim has been denied, delayed, or underpaid, or if a third party is responsible for your injury and you need to consider a lawsuit. Hiring a workers’ compensation attorney can help you make sure everything is filed correctly, fight for the full benefits you may deserve, and deal with insurance companies that don’t play fair.
A lawyer can also help if your weekly wage calculation seems off, if your employer won’t cooperate, or if you’re unsure whether you’re being offered the right type of benefit. Legal support is particularly helpful when you’re dealing with permanent injuries or long-term disability that could impact your future.
Those Thumbs Up Guys® at Floyd Hunter Injury Law are here to help. Our team knows Alabama’s workers’ comp system and how to push back when insurance companies don’t follow the rules. We offer free consultations and work on a contingency basis, so you won’t pay us anything unless we win for you.
If you’ve been hurt at work, don’t wait. Contact Floyd Hunter Injury Law today to get the support you need to move forward.
