MONTGOMERY, Ala. — The Business Council of Alabama (BCA) joined Alabama House Minority Leader Anthony Daniels (D – Huntsville) and Governor Kay Ivey at the Hyundai Motor Manufacturing facility in Montgomery to celebrate the enactment of legislation that exempts overtime pay earned by workers from state income taxes.

BCA President and CEO Helena Duncan gave opening remarks at the event and noted that her organization played a pivotal role in generating widespread support for the historic legislation, underscoring its commitment as a champion of the Alabama business community.

“Hardworking Alabamians who go over and above in their efforts deserve to be rewarded, but far too often, extra pay from a job well done is eaten away by income taxes,” Duncan said. “Exempting overtime pay from taxes provides added incentive, recognizes hard work, and creates more pocket dollars for Alabama workers and families.”

“The Business Council of Alabama represents employers ranging from the small-town mom-and-pop operations to the state’s largest employers and corporations, and all of them, without fail, applauded and embraced the passage of this common-sense legislation,” she continued. “The enactment of this law will reduce the strain on employers in times of workforce shortage and allow employees to keep more of what they earn, which is a winning formula across the board for all Alabamians.”

Earlier this year, the Alabama Legislature approved House Bill 217, which was sponsored by Rep. Daniels, with unanimous bipartisan support. Now signed into law and enacted by Gov. Ivey as the first of its kind nationwide, the legislation exempts income earned beyond the standard 40-hour workweek from gross income calculations.

This law marks a significant stride toward creating an environment in which businesses can flourish and individuals can thrive.

BCA recently published an overtime pay reporting guide to help Alabama businesses comply with the new law. Click here to view the guide.