April 2026

 


Alabama Reminder - Alabama Overtime Tax Exemption Law Expires on June 30,

06/05/25

Under current law, Alabama exempts amounts paid to nonexempt employees as overtime compensation in accordance with the U.S. Fair Labor Standards Act (FLSA) from state income tax.  This tax exemption is in effect through June 30, 2025.   

 

Effective July 1, 2025, employers must again withhold state income tax from FLSA overtime wages paid to all nonexempt employees. 
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Alabama Overtime Tax Exemption Law Expires on June 30, 2025 - Reminder

05/01/25

Under current law, Alabama exempts amounts paid to non-exempt employees as overtime compensation in accordance with the U.S. Fair Labor Standards Act (FLSA) from state income tax.  This tax exemption is in effect through June 30, 2025. 

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Alabama to Exclude Overtime Pay from State Taxation

07/06/23

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.

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Alabama Amends Gun Law Restricting Employers’ Policies

 
Executive Summary 
 
Alabama Governor Robert Bentley has signed amendments to the state gun law to limit employers’ 
ability to restrict employee possession of firearms in employers’ parking areas. The new law (SB 286), 
becomes effective on August 1, 2013. 
 
 
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