HB77 Alabama 2020 Session

Summary

Primary Sponsor

Wes KitchensSenator

Republican

Session

Regular Session 2020

Title

Employment, require employers and state agencies to follow specified requirements to determine whether a worker is an employee for purposes of benefits and tax liabilities

Summary

HB 77 would require employers and state agencies to use the IRS Rev. 87-41 test to determine whether a worker is an employee for benefits and tax purposes.

What This Bill Does

If passed, the bill requires employers and applicable state agencies to apply the IRS Rev. 87-41 test when deciding if a worker qualifies as an employee for employment benefits (Title 25) and for tax liabilities (Title 40). It ensures the same standard is used across private and public sectors. The act would become effective on the first day of the third month after passage and governor approval.

Who It Affects

• Employers: must apply the specified IRS test to determine if workers are employees for benefits and tax purposes.
• Workers: their employment status (employee vs. non-employee) for benefits and tax purposes would be determined using the IRS test.

Key Provisions

• Employers and state agencies must use the IRS Rev. Rul. 87-41 test (as amended or replaced) to determine whether a worker is engaged in employment for purposes of Title 25 benefits and Title 40 taxes.
• The act becomes effective on the first day of the third month following its passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Employment