- (1) For periods beginning on October 1, 2024, and ending June 30, 2025, gross income does not include amounts paid as overtime in accordance with the U.S. Fair Labor Standards Act.
- (2) For employers governed by the National Railway Labor Act, the exemption applies to hourly component overtime compensation as defined in applicable collective bargaining agreements.
- (3) Exempt overtime reporting requirements beginning October 1, 2024, require the following to be reported on the employers monthly (Form A-6) or quarterly (Form A-1) withholding tax return:
- (a) The total amount of exempt overtime paid for the period.
- (b) The total number of employees to which it was paid during the period filed.
- (4) The exempt overtime wages included in box 14 of the employees annual Forms W-2 should correspond to the total exempt overtime wages reported with the monthly/quarterly filings for the year.
Author: Kathleen Abrams, Neal Hearn
Statutory Authority: Code of Ala. 1975, §§40-2A-7(a)(5), 40-18-14.
History: Repealed: Filed July 27, 1988. New Rule: Published October 31, 2024; effective December 15, 2024.