SB188 Alabama 2017 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2017

Title

Compensation, unemployment, to lower weeks of unemployment benefits from 26 to 14 based on the state average unemployment rate, Secs. 25-4-72, 25-4-74 am'd.

Summary

SB188 would rewrite Alabama's unemployment benefits by reshaping both the total potential benefits per benefit year and the weekly benefit calculation, based on the state's average unemployment rate.

What This Bill Does

If enacted, the bill changes how much a person can receive in a benefit year to the lesser of 14 or 20 times their weekly benefit amount and one-fourth of their base-period wages, with the threshold tied to Alabama's average unemployment rate. It also changes the weekly benefit calculation to be an equal division of the average wages from the top two base-period quarters, distributed across the current weeks compensated. The changes take effect for benefit years beginning January 1, 2018, and replace the previous formulas in the specified sections of law.

Who It Affects

• Unemployed workers in Alabama, who could receive a different total cap and a new method for calculating weekly benefits based on the state's unemployment rate and top base-period wages.
• Employers and the state's unemployment insurance fund, since changes to benefit caps and weekly amounts affect the total money paid out of the fund and the administrative burden on the Department of Labor.

Key Provisions

• Maximum total benefits per benefit year would be the lesser of 14 or 20 times the weekly benefit amount and one-fourth of base-period wages, with the exact level depending on the state's average unemployment rate.
• Maximum weekly benefit amount would be determined by an equal division of the current weeks compensated of the average wages paid in the two highest-wage base-period quarters, replacing the previous formula.
• The bill amends Sections 25-4-72 and 25-4-74 of the Alabama Code to implement these changes and includes an effective date of January 1, 2018.
• If federal law requires a higher maximum weekly benefit for approval, the state would adopt the minimum amount required by federal 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

Unemployment