This bill proposes to reinstate a tax exemption for overtime pay earned by hourly workers in Alabama, which had previously been in effect only through June 30, 2025. Under the new rules, overtime compensation calculated according to the U.S. Fair Labor Standards Act would be excluded from state income tax starting with the 2027 tax year. The legislation also mandates that the Department of Revenue and the Alabama Commission on the Evaluation of Services conduct and publish an economic impact study to analyze the effects of this exemption. Additionally, the bill includes minor technical updates to align the state tax code with current language standards.
SB 291 would prevent businesses that violate human trafficking or federal child labor laws from keeping economic tax incentives under Alabama's Jobs Act. If an entity violates these laws, it must reimburse the state and local governments for all tax incentives, grants, or abatements received. The bill also requires the Secretary of Commerce to verify applicants comply with these labor laws before approving incentives. These changes update Alabama law to close a loophole allowing violators to retain tax benefits.
SB 171 establishes Alabama's first state minimum wage at $10.00 per hour, effective January 1, 2027. It directly affects most employers by requiring them to pay this rate, but exempts small businesses with 50 or fewer employees. The bill sets a clear threshold for the exemption and aligns with the current federal minimum wage of $7.25. This legislation will take effect on October 1, 2026, with the wage requirement beginning in 2027.
HB 352, the Alabama Jobs Act, requires companies receiving economic tax incentives from Alabama's Secretary of Commerce to certify they follow specific workplace protections. Directly affecting businesses seeking these incentives (typically for job-creating projects), the bill mandates that recipients: ban mandatory overtime, eliminate shift rotation, avoid requiring weekend work, provide 40 hours of paid emergency leave annually, guarantee a standard 40-hour work week (except for health/safety emergencies), prohibit off-the-clock work, and not count bathroom/breakroom travel time toward required breaks. These requirements would take effect for all new incentives starting October 1, 2026. The bill does not change existing employment laws but ties tax incentives to these specific worker protections.
HB 346 would prevent businesses that violate human trafficking or child labor laws from receiving Alabama Jobs Act tax incentives. Specifically, it requires companies found guilty of violating these laws to pay back the full value of any tax breaks, grants, or abatements they received. The bill also updates Alabama law to mandate that the Secretary of Commerce verify businesses do not engage in such violations before approving tax incentives. This directly affects any business seeking economic development tax incentives under Alabama's Jobs Act.
This resolution (HJR 62) urges the State of Alabama to adopt a "Temporary Workers' Bill of Rights" but does not create binding law. It proposes specific standards for temporary workers, including requiring fair pay, safety training, clear assignment details, prohibiting fees for background checks, banning forced arbitration, limiting assignment lengths (90 days max), and mandating offers of permanent roles after 90 days (or 180 days for medical leave exceptions). The resolution directly addresses temporary staffing agencies and host employers in Alabama, outlining 12 key provisions to improve working conditions. As a non-binding resolution, it expresses legislative support but would require separate action to become law.
HB 160 amends Alabama laws to update overtime rules for public safety employees in Tuscaloosa County. It requires law enforcement officers (including those in Northport and Tuscaloosa police departments) and firefighters to receive 1.5 times their regular pay or compensatory time off for hours worked beyond 8 hours in a day, 40 hours in a week, or 24 hours in a fire protection tour. The bill specifically allows Northport and Tuscaloosa to implement a four 10-hour shift schedule, triggering overtime rules for those assigned to such schedules. It excludes the City of Tuscaloosa’s Executive Director of Public Safety from all overtime benefits under these provisions. The changes apply only to Tuscaloosa County public safety staff and take effect October 1, 2026.
