HB299 Alabama 2014 Session

Summary

Primary Sponsor

Terri CollinsRepresentative

Republican

Session

Regular Session 2014

Title

Municipalities, municipal employees, direct deposit of wages under certain conditions

Summary

HB299 lets municipalities require new employees to be paid by direct deposit into a bank chosen by the employee, with protections and opt-out options.

What This Bill Does

If a municipality adopts the policy, it may require new hires after adoption to participate in direct deposit. It must provide an electronic fund transfer authorization form, deposit wages into the employee's chosen bank account, and give a per-paycheck statement detailing total wages, any deductions, and the amount deposited. It cannot require direct deposit if the employee would incur fees and no-fee alternative is available; employees may opt out in writing before the end of the first pay period or annually thereafter.

Who It Affects

• New municipal employees hired after the policy is adopted: may be required to participate in direct deposit and have wages deposited into a bank account of their choice, with access to a per-paycheck deposit statement; may opt out subject to timing rules.
• Municipalities as employers: may adopt the policy and, if chosen, must implement direct deposit procedures, monitor for applicable fees, and provide required forms and statements.

Key Provisions

• A municipality may adopt a policy to require new employees hired after adoption to participate in direct deposit.
• If a municipality elects direct deposit, it must provide an electronic fund transfer authorization form, deposit wages into the employee's chosen bank, and provide a direct deposit statement each pay period showing total wage, deductions, and amount deposited.
• A municipality may not require direct deposit if the employee would incur fees and no fee-free alternative is available in the municipality.
• An employee may opt out in writing before the end of the first pay period or annually thereafter.
• The act becomes effective on the first day of the third month after passage/approval or becoming law.

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