Alabama Electrical Law — State-Specific Module

The Alabama-only piece of contractor exam prep — three-board structure (HBLB / Major Contractor / Electrical Contractors Board), NASCLA REQUIRED, AL tax (income with federal deduction + sales + Business Privilege Tax), AL mechanics-lien (4-mo sub / 6-mo Original Contractor), labor laws, and contract specifics. Authored verbatim from Ala. Code + ADOR + AECB + ADOL primary sources.

“Alabama doesn't give you a workaround — NASCLA is required, not optional, for both the Major Contractor and Electrical Contractor license. Three boards run the show in this state: Home Builders for residential, Major Contractor for commercial work over $50K, and the AECB for electrical. Get the board split right and the NASCLA requirement covered, and Alabama becomes one of the cleanest contractor paths in the Southeast.”
— Fredrick McHugh, founder, multi-state master electrician

See your Alabama bundle →View NASCLA Layer 1 core

What this state-law module covers

8 sub-modules · 16 segments · cycle basis: Ala. Code Title 34 Ch 8 + Ch 14A + Ch 36 + Title 35 Ch 11 + Title 40 + Title 25 (2026 codification)

Module 1 — Business Registration + Three-Board Structure
2 segments
AL Secretary of State entity formation, the three-board split (HBLB / Major Contractor / AECB), Qualifying Representative rule, NASCLA REQUIRED for both GC and Electrical.
Module 2 — Alabama Tax Obligations
2 segments
AL graduated income tax to 5% top with federal deduction, 4% state sales (combined 8-10%), Business Privilege Tax, no state gross-receipts.
Module 3 — Alabama Labor Laws
2 segments
Workers' comp kicks in at 5+ employees — that's a higher threshold than most contractor states. Federal OSHA jurisdiction, no state minimum wage, no state prevailing wage, right-to-work since 1953, and a strict 7-day new-hire reporting deadline.
Module 4 — Alabama Mechanics Lien Law (HIGH STAKES)
2 segments
Ala. Code § 35-11-215 — Original Contractor 6 months, Subcontractor 4 months, Notice to Owner under § 35-11-218, suit-to-enforce 6 months, top-down accounting.
Module 5 — Alabama Contract Law Specifics
2 segments
Homebuilder vs Major Contractor split, AL Bid Law, 3-day cancellation, 7-day Prompt Pay, 10% retainage cap, Qualifying Representative, AL Deceptive Trade Practices.
Module 6 — Insurance + Bonding
2 segments
Major Contractor financial-statement net-worth threshold, AECB Electrical Contractor bond, COI minimums, AL Bid Law project bond requirements.
Module 7 — AL Exam Logistics (PSI)
2 segments
PSI Business and Law of Construction — Alabama. NASCLA Commercial GC + NASCLA Electrical both REQUIRED. AECB-administered electrical exam.
Module 8 — CE Hours + License Renewal
2 segments
AL annual entity registration with Secretary of State, biennial Major Contractor + AECB Electrical Contractor renewal cycles, AECB CE hours per cycle.

How this fits with the rest of your Alabama exam prep

Pair this Alabama state-law module with the NASCLA Business + Law universal core and NEC Journeyman Prep. Together they cover every section the Alabamacontractor exam asks about — one bundle, one passing date, one TCS account.

See your Alabama bundle pricing →

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Alabama Electrical Law — State-Specific Module

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Alabama Electrical Law — State-Specific Module

“Alabama doesn't give you a workaround — NASCLA is required, not optional, for both the Major Contractor and Electrical Contractor license. Three boards run the show in this state: Home Builders for residential, Major Contractor for commercial work over $50K, and the AECB for electrical. Get the board split right and the NASCLA requirement covered, and Alabama becomes one of the cleanest contractor paths in the Southeast.”

What this state-law module covers

8 sub-modules · 16 segments · cycle basis: Ala. Code Title 34 Ch 8 + Ch 14A + Ch 36 + Title 35 Ch 11 + Title 40 + Title 25 (2026 codification)

Module 1 — Business Registration + Three-Board Structure

2 segments

AL Secretary of State entity formation, the three-board split (HBLB / Major Contractor / AECB), Qualifying Representative rule, NASCLA REQUIRED for both GC and Electrical.

Module 2 — Alabama Tax Obligations

2 segments

AL graduated income tax to 5% top with federal deduction, 4% state sales (combined 8-10%), Business Privilege Tax, no state gross-receipts.

Module 3 — Alabama Labor Laws

2 segments

Workers' comp kicks in at 5+ employees — that's a higher threshold than most contractor states. Federal OSHA jurisdiction, no state minimum wage, no state prevailing wage, right-to-work since 1953, and a strict 7-day new-hire reporting deadline.

Module 4 — Alabama Mechanics Lien Law (HIGH STAKES)

2 segments

Ala. Code § 35-11-215 — Original Contractor 6 months, Subcontractor 4 months, Notice to Owner under § 35-11-218, suit-to-enforce 6 months, top-down accounting.

Module 5 — Alabama Contract Law Specifics

2 segments

Homebuilder vs Major Contractor split, AL Bid Law, 3-day cancellation, 7-day Prompt Pay, 10% retainage cap, Qualifying Representative, AL Deceptive Trade Practices.

Module 6 — Insurance + Bonding

2 segments

Major Contractor financial-statement net-worth threshold, AECB Electrical Contractor bond, COI minimums, AL Bid Law project bond requirements.

Module 7 — AL Exam Logistics (PSI)

2 segments

PSI Business and Law of Construction — Alabama. NASCLA Commercial GC + NASCLA Electrical both REQUIRED. AECB-administered electrical exam.

Module 8 — CE Hours + License Renewal

2 segments

AL annual entity registration with Secretary of State, biennial Major Contractor + AECB Electrical Contractor renewal cycles, AECB CE hours per cycle.

How this fits with the rest of your Alabama exam prep

See your Alabama bundle pricing →