According to Alabama workers' compensation requirements, what is the minimum number of employees that triggers mandatory workers' compensation coverage for construction contractors?
Correct Answer
D) 5 employees
Alabama law requires construction contractors to carry workers' compensation insurance when they have 5 or more employees.
Why This Is the Correct Answer
Option D (5 employees) is correct. Alabama law mandates workers' compensation insurance for construction contractors who employ 5 or more employees. Below this threshold, coverage is not legally required (though still advisable). This is a state-specific rule that differs from some other states and industries.
Why the Other Options Are Wrong
Option A: 10 employees
10 employees is too high — waiting until you have 10 employees to obtain workers' comp would leave a significant workforce unprotected and the contractor in violation of Alabama law once the 5-employee threshold is crossed.
Option B: 3 employees
3 employees is below the actual threshold. While some states trigger mandatory coverage at 3 or even 1 employee, Alabama specifically sets the construction contractor threshold at 5 employees.
Option C: 1 employee
1 employee is the threshold in some states (and for some Alabama industries), but not for construction contractors in Alabama. Applying the most conservative threshold from another context to Alabama construction is a common confusion.
Memory Technique
Remember '5 fingers = 5 employees = workers' comp required in Alabama construction.' When your crew fills one whole hand (5 fingers/employees), Alabama says you must carry workers' comp. Fewer than 5 (a partial hand) = not yet mandatory.
More Alabama Questions
An Alabama licensed contractor is required to complete continuing education. How many hours are required for license renewal?
According to Alabama building codes, what is the maximum allowable deflection for floor joists under live load?
Which continuing education topic is mandatory for Alabama contractor license renewal?
Under Alabama building codes, which edition of the International Building Code (IBC) is currently adopted?
Under Alabama law, what is the statute of limitations for filing a breach of contract claim against a contractor?
A homeowner hires you for a $25,000 kitchen renovation but refuses to pay the final $5,000. You properly file a mechanics' lien. The homeowner wants to sell the house. What happens to your lien?
Which continuing education topic is specifically mandated by Alabama for contractor license renewal?
A contractor discovers that their Alabama contractor license expired 45 days ago. What is the consequence under Title 34-8?
Your client wants to add a 500 sq ft addition to their home. You discover during construction that the existing electrical system doesn't meet current Alabama electrical code. What is your obligation?
A contractor is building a residential foundation in Alabama clay soil. The soil report indicates expansive clay with a plasticity index of 35. What is the minimum recommended foundation depth?
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