HB109 Alabama 2014 Session

Summary

Primary Sponsor

Wes Long

Republican

Session

Regular Session 2014

Title

Unemployment compensation, employing unit defined, Sec. 25-4-8 am'd.

Summary

HB109 adds a 65% ownership threshold to define an 'employing unit' for unemployment compensation in Alabama.

What This Bill Does

HB109 adds a rule that if an employer acquires at least 65% of an Alabama-based organization, trade, employees, or business, or substantially all of its assets, that buyer becomes an 'employing unit' for unemployment compensation. The acquiring company would then be treated as the employer and its unemployment tax rate would be set using the usual experience-rating rules, based on the combined employment record of the old and new business. The change applies only to acquisitions of Alabama-based operations, and existing rules about transfer of experience and penalties remain in place.

Who It Affects

• Employers/acquirers in Alabama that buy 65% or more of another Alabama business (or its assets) would become an employing unit and face unemployment tax liability and rate changes.
• The Alabama unemployment system and workers indirectly; the change could affect who pays into the unemployment fund and how unemployment tax rates are calculated when such acquisitions happen.

Key Provisions

• Adds a 65 percent threshold to define 'employing unit': an acquiring entity that buys at least 65% of the organization, trade, employees, or business located in Alabama, or substantially all of the assets thereof, from another employing unit becomes an employing unit.
• Acquisitions meeting the threshold trigger application of existing unemployment compensation rules, including transfer of unemployment experience and rate calculation, to the acquiring entity.
• Effective date: The act becomes law on the first day of the third month after passage and approval by the Governor.

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

Subjects

Unemployment Compensation