Department of Industrial Relations
649 Monroe Street
Montgomery, Alabama 36131
334-242-8990
www.dir.state.al.us/
There is no provision for minimum wage in the State of Alabama.
There is also no general provision in Alabama State Law covering paying overtime in a non-FLSA covered employer.
Alabama State new hire reporting requirements are that every employer must report every new hire, rehire and recall. The employer must report the federally required elements of:
- Employee's name
- Employee's address
- Employee's social security number
- Employer's name
- Employers address
- Employer's Federal Employer Identification Number (EIN)
This information must be reported within 7 days of the hiring or rehiring.
The information can be sent as a W4 or equivalent by mail, fax or electronically.
There is a $25.00 penalty for a late report in Alabama.
The Alabama new hire-reporting agency can be reached at 334-353-8491 or on the web at www.dir.state.al.us/nh.htm
Alabama does allow compulsory direct deposit but the employee's choice of financial institution must meet federal Regulation E regarding choice of financial institutions.
Alabama has no State Wage and Hour Law provisions concerning pay stub information.
In Alabama there are no statutory requirements concerning pay frequency or the lag between when the lag time between when the services are performed and when the employee must be paid.
Nor for that matter does Alabama have legal provisions concerning when a terminated employee, voluntary or involuntary, must be paid.
Deceased employee's wages must be paid when normally due to the surviving spouse or custodian of minor children.
Escheat laws in Alabama require that unclaimed wages be paid over to the state after one year.
There is no provision in Alabama law concerning record retention of abandoned wage records.
There is no provision in Alabama law concerning tip credits against State minimum wage.
In Alabama the payroll laws covering mandatory rest or meal breaks are only that: minors under 16 must have 30 minutes rest after five hours of work.
There is no provision in Alabama law concerning record retention of wage and hour records therefor it is probably wise to follow FLSA guidelines.
The Alabama agency charged with enforcing Child Support Orders and laws is:Alabama Department of Human Resources
Child Support Enforcement Division
50 Ripley St.
Montgomery, AL 36130-1801
334-242-9300
www.dhr.state.al.us/csed/default.asp
Alabama has the following provisions for child support deductions:
- When to start Withholding? Immediately after receipt of order.
- When to send Payment? Within 7 days of Payday.
- When to send Termination Notice? "Promptly"
- Maximum Administrative Fee? $2 per month.
- Withholding Limits? Federal Rules under CCPA.
Please note that this article is not updated for changes that can and will happen from time to time.
Charles J. Read, CPA has been in the payroll, accounting and tax business for 30 years, the last fifteen in private practice. Mr. Read is the author of “How to Start a New Business.” To find professional payroll service at a budget price go to www.PayrollonaBudget.com a paperless payroll company.For a full service payroll bureau with CPA’s on staff visit www.CustomPayroll.com .See an excerpt of Mr. Read’s interviews from William Shatners “Heartbeat of America” television show on the web sites linked above.
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