HB278 Alabama 2020 Session

Summary

Primary Sponsor

Danny GarrettRepresentative

Republican

Session

Regular Session 2020

Title

Unemployment compensation, language relating to benefit years beginning on or afterJuly 2, 2006, confirmed, Secs. 25-4-59, 25-4-153 added; Secs. 25-4-72 am'd.

Summary

HB278 confirms how unemployment benefits are calculated for benefit years beginning on or after July 2, 2006, and makes certain unemployment procedures exclusive for determinations and appeals.

What This Bill Does

It amends the benefit calculation for weeks beginning on/after July 2, 2006 to use a formula based on the two highest base period quarters, with specific rounding rules and a gradually increasing maximum weekly benefit (255 in 2008, 265 in 2009, 275 in 2020). It retains pre-2006 rules for earlier benefit years. It adds that if federal law requires a higher maximum for approval, the higher amount applies. It authorizes Reed Act funds to cover unemployment administration costs and clarifies that withdrawals do not alter employer tax schedules for 2010. It establishes exclusive procedures in certain articles for contribution-rate determinations and appeals.

Who It Affects

• Unemployed workers in Alabama who would be eligible for benefits in benefit years beginning on or after July 2, 2006 (changes to benefit amounts and eligibility thresholds).
• Employers and the Alabama Department of Labor, who fund the unemployment program, administer benefits, determine contribution rates, and handle-related appeals.

Key Provisions

• Amends Section 25-4-72 to calculate weekly benefits as 1/26 of the sum of wages in the two highest base-period quarters, with rounding rules, a $44.50 eligibility floor, and increasing maximums: $255 (2008), $265 (2009), and $275 (2020) for benefit years starting on/after the specified dates.
• Adds Section 25-4-59 and Section 25-4-153 establishing that the procedures in Article 7 (commencing with Section 25-4-130) and Article 3 (commencing with Section 25-4-50) are the exclusive methods for determinations and appeals related to contribution rates and payments.
• Authorizes Reed Act funds to cover up to 15% of funds (and up to $7,940,119) for unemployment administration from 2008-2009, with no impact on 2010 employer tax schedules.
• Provides that the act takes effect immediately after 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

Unemployment Compensation