SB48 Alabama 2014 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Clay Scofield
Republican
Session: Regular Session 2014
Title: Unemployment compensation, employing unit defined, Sec. 25-4-8 am'd.
Summary: SB48 broadens and clarifies which entities are considered employers for Alabama unemployment compensation and how they are taxed and rated.
What This Bill Does
The bill expands the definition of an employing unit after 1977 to include specific wage and work-week thresholds, certain acquisitions, and other transfer scenarios. It covers entities that acquire significant portions of a business or assets, as well as those that merge or restructure, and it includes tribal groups and certain service types. It also sets rules for transferring unemployment experience when a trade or business is sold or merged, adds penalties for improper rate avoidance, and allows for penalties or felony prosecutions for violations. The act becomes effective on the first day of the third month after approval by the Governor.

Who It Affects
Businesses and organizations in Alabama (employing units) that may now be considered employers under unemployment compensation due to wage thresholds, weeks worked, or acquisition/ownership changes.
Companies that acquire or merge with other businesses or assets, including those with 65% or more ownership changes, where unemployment experience may transfer or be reassigned.
Individuals or entities that knowingly violate unemployment tax rules, as penalties apply and can include civil fines or felony charges.

Key Provisions
Defines a post-1977 employing unit by specific criteria: wage thresholds ($1,500 in a calendar quarter) or involvement of at least one employee in 20 different weeks in a year.
Adds multiple scenarios for becoming or remaining an employer (e.g., acquisitions of 65% or more of an organization or assets, and certain types of mergers or acquisitions).
Includes special considerations for transfers of unemployment experience when a trade or business is transferred with substantial common ownership, recalculating rates from the transfer date.
If a party acquires a business primarily to obtain a lower rate, the transfer of experience may be denied and a new employer rate assigned based on objective factors.
Imposes penalties for knowingly violating rate determinations, including the highest rate assignable or, for non-employers, civil penalties up to $10,000 or 10% of underreported amounts; violations can also be prosecuted as a Class C felony.
Authorizes the director to establish procedures to identify transfers or acquisitions for rate purposes and aligns application with federal guidelines.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Unemployment Compensation