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Alabama

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Alabama Establishes Private-Employer Voluntary Hiring Preference Program for Veterans and Spouses

Ogletree Deakins·

Alabama has enacted a new law aimed at improving access to employment for uniformed services personnel and their spouses.

Alabama Bans Confidentiality Agreements That Prohibit Disclosure of Sexual Abuse

Ogletree Deakins·

Alabama has joined a growing number of states restricting the use of nondisclosure agreements in cases involving sexual abuse. On February 18, 2026, Governor Kay Ivey signed into law Senate Bill (SB) 30 , known as “Trey’s Law.”

Alabama Eyes Portable Benefits for Freelancers and Gig Workers

Ogletree Deakins·

Certain states have considered enacting legislation facilitating the creation of portable benefit accounts for independent contractors, including gig economy workers. These accounts attach to the individual worker rather than a specific employer, allowing them to pay for various expenses such as hea

Supreme Court Says Alabama’s Exhaustion of State Processes Rule Unlawfully Blocked Due Process Claims

Ogletree Deakins·

On February 21, 2025, the Supreme Court of the United States ruled that an Alabama rule requiring claimants to first exhaust the state administrative appeals process before bringing due process claims over delays in their appeals of unemployment compensation claims unlawfully immunizes state officia

Alabama Governor Signs Binary Sex Bill

Ogletree Deakins·

On February 13, 2025, Alabama Governor Kay Ivey signed into law Senate Bill 79 / Act 2025-3 , declaring that there are only two sexes, male and female. Originally introduced on February 4, 2025, the legislation amends Alabama Code § 1-1-1, which defines certain words used throughout the Alabama Code

‘What Is a Woman?’ Alabama Governor Signs Bill Declaring There Are Only Two Sexes

Ogletree Deakins·

On February 13, 2025, Alabama Governor Kay Ivey signed into law Senate Bill 79 / Act 2025-3 , declaring that there are only two sexes, male and female. Originally introduced on February 4, 2025, the legislation amends Alabama Code § 1-1-1, which defines certain words used throughout the Alabama Code

Alabama Tax Law Changes Clarify Overlap with FLSA and Explain Reporting on Form W-2

Littler·

A new Alabama law clarifies the types of overtime wages exempt from state withholding, prompting the Alabama Department of Revenue to promulgate new rules.

Alabama Amends State Income Tax Exemption for Overtime Payments

Ogletree Deakins·

In November 2023, Alabama enacted a law exempting, from Alabama state income tax, amounts received by full-time hourly wage-paid employees as compensation for overtime worked. On May 17, 2024, Alabama amended the Overtime Exemption Act, changing what overtime pay is exempt from Alabama state income

New Alabama Law Limits Public Employers’ DEI Efforts

Jackson Lewis P.C.·

The Alabama Legislature has enacted 2024 Ala. Act 34 , limiting the diversity, equity, and inclusion (DEI) efforts of state agencies, public universities, and public boards of education. The new law goes into effect Oct. 1, 2024. Although the new law does not apply to private sector employers, emplo

DEI Under Scrutiny, Part IX: Alabama Bans Diversity, Equity, and Inclusion Programs and Departments for Public Institutions

Ogletree Deakins·

Alabama has joined the growing list of states passing laws banning diversity, equity, and inclusion (DEI) initiatives in public institutions. On March 20, 2024, Governor Kay Ivey signed into law Senate Bill (SB) No. 129, a measure that limits DEI programs and offices and “divisive concepts,” and des

Alabama to Exempt Overtime Compensation From State Income Tax, Starting January 1, 2024

Ogletree Deakins·

On November 9, 2023, Alabama Governor Kay Ivey signed into law a bill that beginning on January 1, 2024, will make compensation received by full-time hourly wage-paid employees for overtime work performed in excess of 40 hours in a workweek exempt from Alabama state income tax.

Changes to Alabama Tax Laws Impose New Reporting Requirements on Employers

Littler·

Three new rules will take effect this year that alter the overtime wages subject to Alabama withholding tax and employers’ requirements in reporting those newly exempt wages. On October 31, 2023, the Alabama Department of Revenue’s Income Tax Administration issued three final rules that take effect