HB49 Alabama 2018 Session

Summary

Primary Sponsor

Chris EnglandRepresentative

Democrat

Session

Regular Session 2018

Title

Employment, compensation, requiring final wages to be timely paid upon separation

Summary

HB 49 would require employers to pay final wages to an employee on the next regularly scheduled payday after separation, with penalties for late payment unless delays are allowed.

What This Bill Does

When an employee quits, is fired, or is laid off, final wages become due on the next regularly scheduled payday, and the employee can choose to be paid by their usual method or by mail. If the employer fails to pay final wages without a reasonable dispute, the employer owes liquidated damages equal to 10% of the unpaid wages for each day the payment is late, excluding Sundays and holidays. If the employer files for bankruptcy, the liquidated damages cannot be pursued beyond the petition date if a bankruptcy is declared. If delays are caused by factors beyond the employer's control (such as labor disputes, power failures, severe weather), late payment is allowed and not a violation if the final payroll payment is made late due to those circumstances. The law would take effect on the first day of the third month after it passes and is approved by the Governor.

Who It Affects

• Employees who separate from a job: they are owed their final wages on the next payday and may be paid by their chosen method; they may receive liquidated damages for late payment.
• Employers: they must pay final wages on time or face liquidated damages, with exceptions for bankruptcy and force majeure/extraordinary circumstances.

Key Provisions

• Final wages are due on the next regularly scheduled payday after separation; employee may choose payment by usual method or by mail.
• Liquidated damages equal to 10% of unpaid wages for each day late, excluding Sundays and holidays, if there is no reasonable dispute.
• Liquidated damages are not actionable beyond the petition date if the employer files for bankruptcy and is declared bankrupt.
• Delays caused by certain events beyond the employer's control (labor disputes, power failure, weather events, disasters, etc.) allow late payment without violation of this section.
• Effective date: the act becomes law on the first day of the third month after passage and governor 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

Employment