Who needs an unemployment insurance account, new hire reporting and workers’ compensation in Alabama?

Issued by Alabama Department of Workforce (formerly the Department of Labor), Unemployment Compensation Division and New Hire unit; Workers’ Compensation Division, at step 6 of 6 in the opening sequence: before the first hire.

Every kind of business in Alabama

The Alabama table lists this for every kind of business.

Workers’ compensation insurance is required once the business regularly employs five or more people, counting part-time staff; smaller employers may still buy it. Report each new or rehired employee within seven days, online for employers with five or more employees; the fine is up to $25 per missed report. The Department of Labor was renamed the Department of Workforce in 2025, and older forms still carry the old name.

Checked Oct 21, 2026 against the agency’s page.

Step 6 of 6: Before the first hire

  1. Set up the business
  2. Register for tax
  3. Approve the space
  4. Get the permits for your kind of business
  5. Alcohol permits
  6. Before the first hire

Issued by Alabama Department of Workforce (formerly the Department of Labor), Unemployment Compensation Division and New Hire unit; Workers’ Compensation Division.

Sources and dates

Department of Workforce unemployment compensation employer information; new hire reporting pages (portal replaced December 2025); Code of Alabama 25-5-50 and the Workers’ Compensation Division benefits guide. Checked against the agency’s page on the date shown; cities add their own fees.

Questions about opening here.