October 2024

 

News

Alabama Amends Overtime Tax Exemption Law

Alabama has amended the provision which exempts overtime pay earned by employees from state taxation.  The amended law is effective on Oct.  1, 2024.

Alabama Enacts Bill Regarding Taxability of Overtime Wages

As previously announced and as described in the ADP TotalSource's Insights and Solutions bulletin, in June 2023, Alabama enacted House Bill 217  (HB 217 or the Bill), which excludes from gross income for state income tax (SIT) purposes amounts received by a full-time hourly wage-paid employee as compensation for work performed in excess of 40 hours in a week.  This exclusion goes into effect for overtime wages paid beginning Jan. 1, 2024, and is currently scheduled to end on June 30, 2025.

Alabama to Exclude Overtime Pay from State Taxation

Alabama has enacted House Bill 217 (HB 217), which excludes from gross income for state income tax purposes amounts received by a full-time hourly wage-paid employee as compensation for work performed in excess of 40 hours in a week.

The exemption provided under HB 217 will be in effect for tax years that begin after December 31, 2023, and end prior to June 30, 2025.

Alabama requires certain employers to provide leave to adoptive parents

Alabama has enacted legislation (Senate Bill 31) that requires certain employers to provide leave to adoptive parents. Senate Bill 31 takes effect July 1, 2022.

Alabama amends law on firearms in employer parking lots

Alabama has enacted legislation (House Bill 272) that amends the conditions under which employees are entitled to keep firearms in their cars while in their employer’s parking lot. House Bill 272 takes effect Jan. 1, 2023.

Alabama issues emergency regulations on vaccine exemption law

Alabama has published emergency regulations addressing a state law that prohibits employers from requiring employees to receive COVID-19 vaccination without providing the employee an opportunity to seek an exemption for religious or medical reasons. The state has also published a sample exemption request form, which is available here.

Alabama adopts Independent Contactor test

Alabama has enacted legislation (House Bill 408) that requires employers to use specified guidelines for determining whether a worker is an employee or independent contractor under certain laws. House Bill 408 takes effect on July 1, 2021.

Alabama requires new notice for unemployment insurance

The Alabama Department of Labor has adopted an emergency rule that expands the state's unemployment insurance notice requirements. The rule takes effect immediately.

Alabama enacts Equal Pay law

Alabama has enacted legislation (House Bill 225) that prohibits pay discrimination based on sex and race, as well as retaliation against applicants who refuse to disclose their pay history. House Bill 225 took effect on Sept. 1, 2019.

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