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  1. Bama Politics
  2. Alabama
  3. Alabama House & Senate Bills
  4. 2018 Alabama Legislative Regular Session
  5. 2018 Alabama House Bills
  6. HB 49

HB 49

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In Committee
Contents hide
  • 1 Bill Summary
  • 2 Bill Text
  • 3 Bill Actions
  • 4 Bill Documents

Bill Summary

Sponsors
  • Chris England
Session
Regular Session 2018
Title
Employment, compensation, requiring final wages to be timely paid upon separation
Description

Existing law does not dictate when an employer must pay final wages to an employee upon separation of employment

This bill would establish requirements for when and how an employer must pay final wages to an employee upon separation of employment

Relating to employment; to establish requirements for when and how an employer must pay final wages to an employee upon separation of employment.

Subjects
Employment

Bill Text

Note: Bills that change current law do not show the amended text correctly below. Please view Original PDF to see amended sections: HB 49 - Introduced - PDF

Existing law does not dictate when an employer must pay final wages to an employee upon separation of employment

This bill would establish requirements for when and how an employer must pay final wages to an employee upon separation of employment

Relating to employment; to establish requirements for when and how an employer must pay final wages to an employee upon separation of employment.

Section 1

(a) When an employee quits or resigns or is discharged, suspended, or laid off, the wages earned by the employee shall become due and payable by the employer on the next regularly scheduled payday. The employee may choose whether to be paid through his or her usual method of payment or by mail. (b) If an employer, without any reasonable grounds for dispute, fails to pay an employee his or her final wages, as required by this section, the employer shall also be liable to the employee for liquidated damages in the amount of 10 percent of the unpaid wages for each day beyond the final payday that the wage payment is late, excluding Sundays and legal holidays. (c) If an employer who owes final wages to an employee files a petition of bankruptcy, failure to pay liquidated damages under subsection (b) will not be actionable beyond the date of the petition if the employer is declared bankrupt by the court. (d) An employer who is unable to timely prepare payroll due to a labor dispute, power failure, weather catastrophe, epidemic, fire, state of emergency, terrorist attack, act of God, or any other circumstance beyond the employer's control will not be in violation of this section if the final payroll payment is made late as a result.

Section 2

This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.

Bill Actions

Action Date Chamber Action
January 9, 2018 H Read for the first time and referred to the House of Representatives committee on Commerce and Small Business

Bill Documents

Document Type Document Location
Bill Text http://alisondb.legislature.state.al.us/ALISON/SearchableInstruments/2018RS/PrintFiles/HB49-int.pdf

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