HB141 Alabama 2025 Session

Summary

Primary Sponsor

Kenyatte HassellRepresentative

Democrat

Session

2025 Regular Session

Title

State employees; salary deductions further provided for

Summary

HB141 expands state employee payroll deductions to include financial instruments offered through state employee membership associations, under statewide policies and with new rules about collection and administration, effective Oct 1, 2025.

What This Bill Does

The State Comptroller would establish statewide rules for deductions from state employees’ salaries when a group of at least 200 employees requests it. Deductions could cover membership dues, voluntary contributions, insurance premiums, and financial instruments (as defined) offered by employee associations, but not deferred compensation. Deductions would occur at least monthly, be sent to the designated organization, and could be terminated with two months’ written notice. The state would not be liable for repayments on financial instruments, and a new administration fee of up to 1% of the total deduction could be charged. The act preserves existing deductions in place as of April 23, 1985 and becomes effective October 1, 2025. Deductions must comply with restrictions in Section 17-17-5.

Who It Affects

• State employees who participate in payroll deductions through eligible employee groups (minimum 200 members) for dues, contributions, insurance, or financial instruments.
• State employee membership associations and the organizations receiving the deductions, as designated by participating employees, and the state payroll offices/Comptroller overseeing the process.

Key Provisions

• Expands allowable deductions to include financial instruments offered through state employee membership associations; defines financial instrument as a repayment agreement; state bears no liability for repayment between employee and financial institution.
• Deductions require a group of at least 200 participating employees; pre-1985 deductions continue; deductions must be made at least monthly and remitted to the specified organization.
• No deductions for deferred compensation plans.
• State Comptroller may collect up to 1% of the total deduction as a cost of administration.
• Deductions can be terminated by the employee with two months' written notice.
• Effective October 1, 2025; subject to Section 17-17-5 restrictions.

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

Subjects

Government Administration