Looking For Reliable Employer of Record Services Alabama?
Here’s some essential employment information we think you should know.
Streamline Hiring Process with Our Expert HR Solutions
At HR Options, we pride ourselves on becoming your strategic partner in workforce management. Our specialized EOR services in Alabama make it easy to find the right talent, whether you need seasonal workers, project-based specialists, or long-term team members. We manage the complexities of employment with precision so your business can grow without limits. Here’s what our HR experts can manage:
- W-2s
- 1099s
- On-boarding
- Off-boarding
- Timesheet collection
- Employee relations management
- All other aspects of the employment lifecycle
Valuable Benefits for Employees in Alabama
HR Options ensures your employees get the perks they deserve by creating benefits packages that attract top talent and keep your workforce motivated. Our HR experts understand what employees in Alabama want and expect, and we build plans that make them feel appreciated and supported. Depending on different organizations, our benefits packages typically include some or all of the following:
- Pension or 401(K) Retirement Plans
- Life Insurance
- Medical Insurance
- Vision Insurance
- Dental Insurance
- Long-Term Disability Insurance (LTD)
- Health Saving Plan (HSA)
- Flexible Spending Accounts (FSA)
Details of New Hire
Paperwork Requirements in Alabama
When hiring in Alabama, employers must complete specific paperwork to comply with state regulations. At HR Options, we help you stay compliant every step of the way. Here’s an overview of the required documents for new hires:
Workers' Compensation Notice:
Employers must inform new hires about workers' compensation and the legal implications of any misrepresentations regarding benefits.
Withholding Forms:
Alabama employers must collect each employee's A-4 Form, the Withholding Tax Exemption Certificate. They should not accept the federal W-4 form for withholding purposes.
Employment Taxes in Alabama
Statutory fees and employment taxes impact Alabama employees’ overall payroll and paychecks. Here’s a quick breakdown of known taxes in this state:
Employer Taxes
| Employment Tax | Tax Percentage |
|---|---|
| FICA (Medicare) | 1.45% |
| FICA (Social Security | 6.2% |
| State unemployment insurance tax (SUTA) | 0.65% to 6.8% |
| Federal unemployment insurance tax (FUTA) (charged on the first $7,000 earnings per year of an employee) | 6% |
Employee Taxes
| Tax Type | Tax Percentage |
|---|---|
| FICA (Medicare) | 1.45% |
| FICA (Social Security | 6.2% |
| State income tax | 2% to 5% |
| Federal income tax | 10% to 37% |
Important Leave Laws in Alabama
| Leaves Title | Law |
|---|---|
| Bereavement Leave | Alabama does not have a state law mandating bereavement leave. However, employers can offer this benefit as part of their company policies, which may be paid or unpaid. |
| Sick Leave | Alabama has no state law about paid sick leave for private employers. Employers may provide sick leave as part of their employee benefits. |
| Blood/Organ/Bone Marrow Donation Leave | Alabama does not have specific legislation for leave related to blood, bone marrow, or organ donation. Depending on company policy, employers may offer paid or unpaid leave for these activities. |
| Court Attendance/Witness Leave | Employees in Alabama called to serve as witnesses or attend court proceedings are protected from retaliation by employers. Employers may require employees to use paid time off (PTO) for court-related absences. |
| Crime Victims' Leave | Alabama law allows employees to take unpaid leave to attend legal proceedings related to the crime without fear of retaliation. |
| Domestic/Sexual Violence Victims' Leave | Alabama law allows employees who are victims of domestic or sexual violence (or whose family members are victims) to take unpaid leave for medical care, counseling, or relocation. |
| Election Officials' Leave | Alabama has no specific law for employees to serve as election officials. However, employers may offer time off for employees to vote in elections. |
| Family and Medical Leave | Under the federal Family and Medical Leave Act (FMLA), eligible Alabama employees can take up to 12 weeks of unpaid, job-protected leave annually. To qualify, employees must have worked at least 1,250 hours in the past year. |
| Military Service/Veterans' Leave | Alabama law requires all employers to grant leave to employees who are members of the military or veterans and ensure their reemployment after service. |
| Jury Duty Leave | Under Alabama law, employers must allow employees to serve on jury duty. Employees cannot be penalized or terminated for fulfilling their civic duty. |
Comprehensive Employment Termination Details
Probation Period
While Alabama law does not mandate an employee probation period, many companies implement one to assess their suitability for the role. These probation periods usually last 3 to 6 months.
Termination Process
Alabama has an "at-will" employment law, which means employees and employers can terminate their employment at any time for any legal reason. Our EOR service experts at HR Options can guide employers through the termination process to minimize risks and potential disputes.
Notice Period
There is no legal obligation for either party to provide notice of termination unless specifically mentioned in the employment contract. However, as a common practice, employees typically give two weeks' notice when resigning from an organization.
Which Laws Law Apply to Your Organization?
In Alabama, businesses must comply with state and federal employment laws to ensure legal adherence and avoid penalties. Below is a summary of key regulations that may apply to your organization:
| Law | Applies To | Description |
|---|---|---|
| Alabama Age Discrimination in Employment Act (AADEA) | Employers with 20+ employees | The act prohibits employers from discriminating against employees aged 40 and older. |
| Equal Pay Law | All employers | Ensures equal pay regardless of gender or race. However, employers can set base wages based on a specific merit system. |
| Alabama Minimum Wage Law | All employers | Ensures compliance with the state's minimum wage requirements, set at or above the federal minimum wage. |
| Alabama Workers' Compensation Law | All employers | Covers work-related injuries and illnesses to ensure compensation for employees for medical expenses. |
| Child Labor Law | All employers | In Alabama, minors under 16 are restricted from hazardous jobs and cannot work more than 40 hours a week. |
| Crime Victim Leave Law | All employers | Provides unpaid leave for employees who are victims of crimes to attend court hearings. |
| Drug Testing Law | All employers | Allows workplace drug testing under certain conditions. |
| Employment Protection Law | Employers with 50+ employees | Governs wrong termination claims and offers employment protection. |
| Fair Labor Standards Act (FLSA) | All employers | Mandates overtime pay at one and a half times the regular rate for hours worked over 40 in a workweek. |
| Health Care Continuation Law | Employers with 1–19 employees | Under Mini-COBRA law, an organization requires continuing healthcare benefits up to 18 months after employment ends. |
| Jury Duty Leave Law | All employers | Requires employers to provide unpaid leave for jury duty without retaliation. |
| Beason-Hammon Alabama Taxpayer and Citizen Protection Act | All employers | Requires employers to use the federal E-Verify program to confirm the employment eligibility of all new hires. |
| Payment of Wages Law | Employers with 1–19 employees | Regulates the timely payment of wages to employees. |
| Safe Driving Practices | All employers | It prohibits using a wireless communication device for texting while driving but permits voice-operated devices. |
| Alabama Clean Indoor Air Act | All employers | Prohibits smoking in enclosed public places and workplaces. |
| Voting Leave Law | All employers | Requires employers to provide employees time off to vote in elections. |
| Weapons in the Workplace Law | All employers | Allows employees to store lawfully owned weapons in private vehicles or an employer-owned parking lot. |
| Safe Driving Laws | All employers | Imposes restrictions on employee driving behavior, such as prohibiting calling while driving. |
| Smoke-Free Arizona Act | All employers | Prohibits smoking in enclosed public places and workplaces. |
| Voting Leave Law | All employers | Requires employers to provide employees time off to vote in elections. |
| Weapons in the Workplace Law | All employers | Allows employees to store lawfully owned firearms in restricted access areas. |
Ready to Make Your Hiring Process Easy and Quick?
Let our HR specialists handle your Employer of Record services and ensure compliance to grow your business with freedom.