Alabama Workers’ Compensation Goes Digital: What You Need to Know About EDI
The Alabama Department of Labor transitioned to Electronic Data Interchange (EDI) for all state workers’ compensation forms as of January 1, 2023. This transition aims to streamline the existing system, increasing overall efficiency, reducing errors and eliminating the need for mailing physical forms, which can incur costs.
This transition resulted in several substantive changes to the forms and procedures. Not only have new forms been introduced, but many of the familiar forms have also undergone name changes and now require more comprehensive and substantive information compared to previous requirements. This means employers, insurers and others involved in the workers’ compensation process will need to familiarize themselves with the new EDI system to ensure compliance, as it can be a significant change for those accustomed to the previous paper-based process. While navigating the new EDI system may require trial and error, there are no penalties for incorrect or delayed filings in Alabama. However, understanding the new system is important to ensure uniformity and avoid delays or additional paperwork.
Please be on the lookout for a full article on this topic by Birmingham associate Carson Campbell in Swift Currie’s First Report Summer 2023 newsletter. If you wish to further discuss the new EDI forms or have any questions, please contact Carson Campbell at 205.314.2411.
The foregoing is not intended to be a comprehensive analysis of the full effect of these changes. Nothing in this notice should be construed as legal advice. This document is intended only to notify our clients and other interested parties about important recent developments. Every effort has been made to ascertain the accuracy of the information contained within this notice.