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SB296 Alabama 2014 Session

Updated Feb 27, 2026
Notable

Summary

Session
Regular Session 2014
Title
Labor, restriction on the percentage of temporary employees a company that received incentives may employ, Sec. 41-9-202.2 added
Summary

SB296 would limit temporary workers to 1% of the workforce for employers receiving incentives from the Alabama Department of Commerce and bar noncompliant firms from future incentives for three years, with notice and a hearing process.

What This Bill Does

It sets a cap that an incentive recipient's workforce cannot have more than 1% temporary employees. If an employer is found noncompliant, the Department of Commerce will notify them by certified mail, and the employer becomes ineligible for any future grants, loans, or incentives for at least three years after the determination. The employer can request a hearing to demonstrate compliance. The rule applies to incentives awarded on or after the act’s effective date.

Who It Affects
  • Employers that receive grants, loans, performance-based incentives, or other economic development incentives from the Alabama Department of Commerce, who must ensure their temporary employee percentage does not exceed 1%.
  • The Alabama Department of Commerce, which will determine compliance, notify noncompliant employers, and enforce the three-year ineligibility rule plus provide a hearing option.
Key Provisions
  • As a condition of receiving an incentive from the Department of Commerce, an employer's workforce shall consist of not more than 1% temporary employee positions.
  • If an employer is determined noncompliant, they become ineligible for any future incentive awarded by the department for at least three years after the noncompliance determination, with a hearing option to contest and prove compliance.
  • Noncompliance is communicated to the employer by certified mail, and the hearing process is available to establish compliance.
  • The provision applies to incentives awarded on or after the act’s effective date, with the effective date being the first day of the third month after passage and 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
Labor

Bill Actions

S

Read for the first time and referred to the Senate committee on Job Creation and Economic Development

Bill Text

Documents

Source: Alabama Legislature