"Alabama Rings in 2024 with New Overtime Tax Exemption Law"
Starting January 1st, Alabama's new Overtime Tax Exemption Law exempts hourly employees from state income tax on overtime wages. Introduced by House minority leader Anthony Daniels, the law aims to alleviate the financial burden on workers amid inflation and rising costs, allowing them to retain more of their earnings. Employers will need to adjust their reporting to the Department of Revenue to reflect this change. The law, which is unique in the state, received overwhelming support in the House and Senate but is set to sunset in 2025 unless renewed by lawmakers.