HB417 Alabama 2013 Session

Summary

Primary Sponsor

Terri CollinsRepresentative

Republican

Co-Sponsor

Micky Hammon

Session

Regular Session 2013

Title

Municipalities, allowed to require municipal employees to be paid by direct deposit of wages, certain forms required

Summary

HB417 would let municipalities require new employees to be paid by direct deposit, with required forms and protections against fee charges.

What This Bill Does

If a municipality chooses to adopt a direct deposit policy, it may require new hires to participate in direct deposit. The municipality must provide an electronic funds transfer authorization form, deposit wages into the employee's chosen bank account, and give a direct deposit statement each pay period showing total wages, deductions, and the amount deposited. The requirement cannot be imposed if it would cause the employee to incur fees, or if a fee-free option is not available in the municipality.

Who It Affects

• New municipal employees hired after the policy is adopted, who may be required to participate in direct deposit.
• Municipal employers (cities/towns) implementing the policy and their payroll processes, including providing forms and statements and ensuring the fee protections.

Key Provisions

• A municipality may adopt a policy to require new employees to participate in direct deposit.
• If wages are paid by direct deposit, the municipality must provide an electronic funds transfer authorization form, deposit wages into the employee's chosen bank account, and issue a direct deposit statement each pay period with wage totals, deductions, and deposited amounts.
• The municipality may not require participation if the employee would incur fees and no fee-free alternative is available in the municipality.
• The act becomes effective on the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Municipalities