We have an important legislation update to make you aware of. Recently, Alabama passed new legislation that has significant implications for your company if you have employees or liability in the state of Alabama. It is imperative for us to keep you informed and ensure that you are aware of the changes to navigate any potential impacts successfully.
Effective January 1, 2024, Alabama's new legislation (Act 2023-421) excludes wages received by hourly employees for hours designated as overtime pay.
What does this mean for you?
We recommend reviewing the full Alabama Overtime Pay Exception reporting guidance and FAQ document prior to January 2024.
To review your own account:
- Determine if your overtime wages are subject to AL withholding by viewing Client Reports > Client Profile Report.
- If you qualify, you may notice a new AL overtime earning code [Alabama OverTim] to your account. This earning code will act as your normal overtime code would for hours entry on your time entry grid.
- If you qualify and do not see the new earning code Alabama OverTim - please reach out as soon as possible to review your account with your dedicated service team.
- Complete a One-Time Report – Historical 2023 Overtime Data by January 31, 2024. Review the full Alabama Overtime Pay Exception for details.