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Alabama Employee or Independent Contractor Determination

On April 19, 2021, Alabama Governor Kay Ivey signed legislation (HB 408) requiring employers to do both of the following to determine whether an individual is an employee or independent contractor for unemployment benefits and tax liability:

This law does not apply to, or have any impact on, whether a worker is an independent contractor or employee for the state’s workers’ compensation laws.

The law is effective July 1, 2021.

HR Works, headquartered in Upstate New York, is a human resource management outsourcing and consulting firm serving clients throughout the United States for over thirty years. HR Works provides scalable strategic human resource management and consulting services, including: affirmative action programs; benefits administration outsourcing; HRIS self-service technology; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; talent management and recruiting services; and training of managers and HR professionals.