What does workers' compensation typically require in terms of employee count?

Workers' compensation laws vary by state, but many states, including Alabama, have specific requirements regarding the number of employees a business must have before being required to carry workers' compensation insurance. Typically, for Alabama, the requirement is that employers with four or more employees must provide workers' compensation coverage.

This threshold is significant because it reflects the legislative intent to protect a sufficient number of workers in an employment setting, ensuring that employees have coverage in case of workplace injuries. The rationale is based on the understanding that businesses with a minimum number of employees are more likely to have a risk of job-related injuries and thus benefit from the protections offered by workers' compensation insurance.

Understanding this requirement helps business owners ensure compliance with state laws, protect their employees, and mitigate potential financial liabilities associated with workplace injuries.