United States – Alabama

Employment

There is no official form of employment contract – it can be orally or written. Certain statements included in employee handbook can constitute a contract if the language is specific enough.

Payroll

There are no regulations regarding payday.

HR & Labor

Working Hours: Full time employment is considered 40 hours per week. Minimum
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Working Age: An employee must be at least 14 years old to be employed. Restrictions apply to minors.

Immigration

In order to work legally in the United States of America, an employee must be a citizen of the US, have a permanent resident status (Green Card), H-1B visa or L-1 visa.

Benefits

Alabama does not require the employers to provide employees with breaks during their workday.

Minimum Wage

Minimum wage is $7.25/hr

Pension Fund

Employer has to contribute between 10.82%-13.89% of the employee's wages dependent on occupation.

Employee has to contribute 10.82%-13.89% of his/her wages dependent on occupation.

Severance Payment

There is no official state or federal law regarding severance payments. It depends on the company’s policies.

Advanced Notice

According to Alabama Labor Law, employment can be terminated with no notice. However, if there is an employment contract than the stated notice is required.

Termination Procedure

An employee can be terminated at any time as they are considered “at will employees”. No specific termination policies.

Vacation Days

There is no official law regarding vacation days for employee. Each employer decides the number of days upon hiring the employee.

Sick Days

No official law regarding sick days.

Public Holidays

There are 12 public holidays, however private employers are not required to provide either any holidays off or additional pay for work during holidays.

Expat Benefits

There are no official expat benefits. However different companies can offer special benefits for the expats working for them. Benefits differ from one company to another.

Additional Emplolyee Withholding

Federal:
1) Medicare - 1.45%
2) Social Security - 6.2%
3) Unemployment Tax - 6.0% and maximum taxable earnings are $7,000
State:
1) Unemployment Insurance - 2.0% with maximum taxable earnings of $7,000

Federal:
1) Medicare - 1.45% (additional 0.9% contribution for employees earning less than $200,000)
2) Social Security - 6.2% with salary ceiling of $118,500
3) Unemployment Tax - 0%
State:
1) Unemployment insurance - Employees can contribute voluntarily.

Social Security

6.2% of employee cost

VAT / State Sales Tax

4%