Alabama Department of Labor - Workers’ Compensation Division

Please Note

We are a service company that can help you file with the Alabama Department of Labor - Workers’ Compensation Division. We are not associated with this nor any other government agency. We offer paid services and software to help you file. You are not required to purchase our service to file - you may file directly with this agency without using our service.

Contact Information

Phone: 334-956-4044

Web: Home

Licenses

We track the following licenses with the Alabama Department of Labor - Workers’ Compensation Division in order to provide compliance services to our clients. As a client, you see this and other reference data in License Manager in-line with your licenses.

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Alabama Professional Employer Organization Limited Registration

Agency:Alabama Department of Labor - Workers’ Compensation Division
Law:

AL Admin Code 480-5-7-.01

Foreign Qualification is Prerequisite:No
Financial Requirements:

A registrant must have and maintain, at all times, a net worth of not less than $100,000, as shown on the submitted audited or reviewed financial statements.

Insurance Requirements:

Proof of workers’ compensation insurance for each covered employee in Alabama from a carrier properly licensed by the Alabama Department of Insurance, from a self-insured group fund properly approved by the Alabama Department of Industrial Relations, or by individual self-insurance authority granted by the Alabama Department of Industrial Relations is required.

Notes:

Limited registrations are available to entities that:

  • Are domiciled outside the State of Alabama and registered or licensed as a
    professional employer organization in another state with substantially the same or similar
    requirements of those in Alabama;
  • Do not maintain an office in this state or solicit clients located or domiciled
    in Alabama; and
  • Do not have more than fifty (50) covered employees employed or domiciled
    in Alabama on any given day.
Registered Agent (Special Agency) Required?Yes

Initial Registration

Filing Method:

Online

Agency Fee:

$500

Required Attachments:
  • A financial statement setting forth the financial condition of the professional employer organization as of a date not earlier than 180 days prior to the date submitted to the department and audited or reviewed by an independent certified public accountant licensed to practice in the jurisdiction in which such accountant is located, prepared in accordance with generally accepted accounting principles.
  • A complete and current listing of all client employers located in Alabama or who have worksite employees that work in Alabama or are residents of Alabama
  • A list, by jurisdiction, of each name under which the registrant has operated in the preceding five (5) years
  • An organizational chart of the registrant if part of a group/multiple professional employer organization majority owned by the same parent, entity or persons

Registration Renewal

Filing Method:

Online

Agency Fee:

$250

Due:

Annually by the date of issuance.

Alabama Professional Employer Organization Registration

Agency:Alabama Department of Labor - Workers’ Compensation Division
Law:

AL Admin Code 480-5-7-.01

Financial Requirements:

A registrant must have and maintain, at all times, a net worth of not less than $100,000, as shown on the submitted audited or reviewed financial statements.

Insurance Requirements:

Proof of workers’ compensation insurance for each covered employee in Alabama from a carrier properly licensed by the Alabama Department of Insurance, from a self-insured group fund properly approved by the Alabama Department of Industrial Relations, or by individual self-insurance authority granted by the Alabama Department of Industrial Relations is required.

Registered Agent (Special Agency) Required?Yes
Qualifying Individual Requirements:

Registrants must list a controlling person who is: "An officer or director of a corporation operating as a professional employer organization, a shareholder holding 25 percent or more of the voting stock of a corporation operating as a professional employer organization, a partner of a partnership operating as a professional employer organization, an individual who possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of a company operating as a professional employer organization through the ownership of voting securities, by contract or otherwise, and who is actively involved in the day-to-day management of the company."

Initial Registration

Filing Method:

Online

Agency Fee:

$1,000

Notes:
  •  In the event a Professional Employee Organization does not meet the $100,000 net worth requirement as demonstrated by audited financials, the Director may require a registrant to post a security amount in the form of a cash deposit with the Alabama State Treasury, or other security subject to the approval of the Director, to secure the payment of all unemployment taxes and workers’ compensation claims payments due to or with respect to covered employees.
  • Financial statements
    • A registrant must have and maintain, at all times, a net worth of not less than $100,000, as shown on the submitted audited or reviewed financial statements.
    • Must provide a certified GAAP audit dated within 180 days of the application date.
    • Waivers:  Any new PEO in business for less than one year may request a waiver of the audit or review procedures for financial statements. The Department of Labor will have discretion whether to allow or disallow the waiver.There are absolutely no waivers after the orgaization’s first year of existence
    • If you do not meet the financial requirements, a cash deposit or other security may be used at the state’s discretion.
  • Qualified individuals - The state may review the application and request additional documents, forms, materials, and information as are reasonably necessary to confirm the qualifications of the controlling persons.
Required Attachments:
  • A financial statement setting forth the financial condition of the professional employer organization as of a date not earlier than 180 days prior to the date submitted to the department and audited or reviewed by an independent certified public accountant licensed to practice in the jurisdiction in which such accountant is located, prepared in accordance with generally accepted accounting principles.
  • A complete and current listing of all client employers located in Alabama or who have worksite employees that work in Alabama or are residents of Alabama
  • A list, by jurisdiction, of each name under which the registrant has operated in the preceding five (5) years
  • An organizational chart of the registrant if part of a group/multiple professional employer organization majority owned by the same parent, entity or persons

Registration Renewal

Filing Method:

Online

Agency Fee:

$500

Due:

Annually by the date of issuance.

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