Why You Won’t Retire Off Your Alabama Workers’ Comp Claim

Learn about the uphill battle injured workers in Alabama and across the U.S. face to get the compensation they deserve

Most people expect to be adequately compensated after being injured on the job, and they should be. But the reality is that Alabama’s workers’ compensation laws are antiquated (last “modernized” in 1992) and not favorable to injured employees. 

That is why a lot of employees who go to an attorney after being injured on the job find themselves feeling very let down when they discover the actual compensation they will end up receiving and how long the workers’ comp process can take. 

One problem that leads to this is misleading advertisements on billboards and television commercials promising millions of dollars in compensation after an injury. This is unrealistic and does not align with the current Alabama workers’ compensation laws.

Let’s take a look at the current reality Alabama workers face after an on-the-job injury when trying to obtain the workers’ comp benefits they need to provide for themselves and their families.

How much does Alabama workers’ comp provide in disability benefits?

Under Alabama Code §25-5-57(a)(3)g., temporary total disability (TTD) benefits are two-thirds of a worker’s average weekly wage but cannot exceed a maximum amount set by law each year. 

As of July 1, 2024, the maximum benefit is $1,130 per week. This cap only kicks in if the annual salary is around $80,000 or more.

Since 1985, a scheduled member injury, such as a finger, hand, or foot, caps recovery of permanent partial disability (PPD) benefits to injured workers to a maximum of $220 per week, pursuant to Alabama Code §25-5-68.

According to a ProPublica investigation, this is the lowest amount in the entire country. Unfortunately, in the past 20 years, several attempts in our legislature to change the law and update these figures have failed.

ProPublica published an interactive article showing the large discrepancies between what injured employees can recover in each state for various body parts they hurt on the job. Sadly, it is a great demonstration of how outdated and behind Alabama’s workers’ compensation laws are, given that each injured body part is worth significantly less compared to the majority of other states in the United States.

For example, in Alabama, a fully injured arm is worth up to $48,000, but that same injury in Georgia is worth 10 to 20 times that amount (or even more).

This is happening, in part, because Alabama’s laws have not been modernized since the early 1990s, when the cost of living was much less and $220 was two-thirds of the typical Alabama worker’s weekly wage. That arm injury mentioned above is worth the same in 1994 as it is 30 years later in 2024. (Reread that sentence!) 

Does gas, milk, or groceries cost the same now as they did in 1994? Not even close. The cost of living rises annually, but not the value of injuries to Alabama employees.

Workers’ comp benefits are being cut across the country

Injured workers in Alabama are not the only employees affected. Around the country, workers’ compensation benefits have been slashed and dismantled over the last decade, as reported in another ProPublica article. This is being caused by big businesses and insurance companies claiming that costs are out of control, while they are disguising this dismantling of workers’ compensation benefits as “reform” due to the “high costs.” 

This has, in fact, been proven to be false—employers have actually pushed off these costs to American taxpayers. This was revealed during ProPublica’s investigation, which, among other things, also discovered:

• Since 2003, 33 states have enacted laws that cut workers’ compensation benefits or make it harder for workers with certain injuries or illnesses to qualify. For example, Florida has reduced benefits for its most severely disabled workers by 65% since 1994.
• Workers’ compensation payouts for the same injury differ widely depending on where the injury occurs. An arm amputation can be worth 2 to 10 times more on one side of a state line than the other. In Alabama, the maximum compensation for the loss of an eye is just $27,280, compared to $261,525 in Pennsylvania, highlighting how far behind Alabama lags in supporting injured workers. Wow! Why would people want to work in Alabama, where the injury benefits are so far behind?
• Many states have imposed arbitrary time limits on workers’ comp benefits, even for workers who haven’t fully recovered. For instance, ProPublica told the story of John Coffell, who suffered a severe back injury in an Oklahoma tire plant. He saw his wages drop so drastically that his family was evicted from their home. Sadly, we have dealt with that situation with our clients many, many times.
• In 37 states, including Alabama, injured workers cannot freely choose their doctor and are limited to doctors selected by their employer or insurer. Additionally, utilization review (a health insurance company’s opportunity to deny a request for medical treatment) further slows down the request for much-needed medical care.
• In states like California, insurers often reopen old cases and deny medical care based on reviews by doctors who have never examined the patient and may not even be licensed in the state. One tragic example involved Joel Ramirez, who was paralyzed in a warehouse accident. His home health aide was taken away, leaving him to endure hours without proper care, including sitting in his own feces.

These findings make it clear that the workers’ comp laws for employees in some states, including Alabama, are completely unacceptable and need drastic changes.

What needs to happen to improve compensation for injured workers?

There’s no doubt that Alabama’s workers’ compensation laws need a different type of “reform” than what the big corporations and insurance companies have in mind. 

At the very least, the laws need a reformation that allows adequate compensation for the injured employee. They need to be modernized based on the current economy and ever-evolving societal needs for injured workers. 

We truly hope that these laws in Alabama are brought into alignment with other states that better protect their workers.

Injured in Alabama and need help maximizing your workers’ comp claim?

Alabama’s workers’ comp laws are far from perfect, but there are still steps that workers can take to ensure they recover the full benefits they’re entitled to after suffering a workplace injury or occupational disease. As we have since 1967, Nomberg Law Firm will continue to fight for the rights of Alabama workers.

If you’ve recently been injured on the job, reach out to our experienced Birmingham workers’ compensation attorneys for a free estimate of the value of your claim. We can answer your questions, explain your options, and handle negotiations with your employer’s insurance company to help you get the compensation you deserve.

Our office is located in Birmingham, Alabama, but we handle cases throughout our great state. Get started today by scheduling a free consultation with Nomberg Law Firm.

References

2023 Code of Alabama :: Title 25 – Industrial Relations and Labor. :: Chapter 5 – Workers’ Compensation. :: Article 3 – Elective Compensation Under Contract of Employment. :: Section 25-5-57 – Compensation for Disability. (2023). Justia Law. https://law.justia.com/codes/alabama/title-25/chapter-5/article-3/section-25-5-57/ 

2023 Code of Alabama :: Title 25 – Industrial Relations and Labor. :: Chapter 5 – Workers’ Compensation. :: Article 3 – Elective Compensation Under Contract of Employment. :: Section 25-5-68 – Maximum and Minimum Weekly Compensation. (2023). Justia Law. https://law.justia.com/codes/alabama/title-25/chapter-5/article-3/section-25-5-68/ 

Grabell, M. (2015, April 7). Alabama Bill Would Increase Workers’ Comp Benefits for Amputees. ProPublica. https://www.propublica.org/article/alabama-bill-would-increase-workers-comp-benefits-for-amputees 

Grabell, M., ProPublica, Berkes, H., & NPR. (n.d.). How Much Is Your Arm Worth? Depends On Where You Work. ProPublica. https://www.propublica.org/article/how-much-is-your-arm-worth-depends-where-you-work

ProPublica. (2015, March 4). The Demolition of Workers’ Comp. ProPublica; ProPublica. https://www.propublica.org/article/the-demolition-of-workers-compensation