MONTGOMERY – Governor Kay Ivey recently signed into law Senate Bill 316, House Bill 242 and House Bill 390. All three bills, improve Alabama’s business climate by reducing regulation and by making it easier for small businesses to operate in the state.

“From day one, my quest has been to ensure the world knows Alabama is open for business. By removing burdensome regulations on small businesses we are sending that signal loud and clear,” Governor Ivey said. “When businesses spend less on overhead and government regulation, they can invest more in hiring; that’s good for all Alabamians.”

“I am thankful for the work of the legislature in passing these bills, especially the sponsors, Senator Sanford, Representative Garrett, and Representative Carns,” Ivey added.

“NFIB Alabama members appreciate Governor Ivey’s support of the small business legislation that was signed into law. Governor Ivey has always been a great supporter and champion for small business,” said Rosemary Elebash, Alabama State Director for the National Federation of Independent Business.

Senate Bill 316 protects small businesses which are licensed in one municipality or county from being forced to buy a license in a second location just to make deliveries to that area. House Bill 242 clarifies the state’s workers’ compensation law and makes it easier for small businesses to comply with the law. House Bill 390 protects franchise parent companies from law suits initiated against the organization’s franchisees, thereby allowing for the expansion of franchise opportunities in Alabama.

“My goal since entering the legislature in 2009 has always been to limit the size and scope of government, while also making Alabama a business-friendly sate. Senate Bill 316 accomplishes that on both fronts,” SB316 sponsor Senator Paul Sanford commented.

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To view the original press release, visit the newsroom of the Governor.

Come Dec. 1, business owners across Alabama and nationwide will be paying higher labor costs as a result of the Department of Labor’s new overtime rule. The DOL estimates the regulation will impact more than 60,000 workers in Alabama.

The rule will raise the threshold at which employees are exempt from earning overtime pay—from $23,660 to $47,476. The Fair Labor Standards Act dictates that employees are not eligible for overtime pay if they are compensated at a minimum wage level (now $47,476), if they are paid on a salaried basis, and if they perform duties considered professional, administrative, or executive in nature. Now, under the new rule, the minimum wage level triggering overtime exemption is nearly double the old rate.

NFIB has spoken at length to the media about the harmful impact of this ruling, including decreased staff morale stemming from employment status changes, reduced hours, and falling pay rates. Rosemary Elebash, NFIB/Alabama state director, says the Department of Labor’s new overtime rule is going to hurt small businesses throughout Alabama.

“It’s going to mean higher costs for employers, and that’s going to force them to make some tough decisions when it comes to staffing,” she said. “On top of that, you’re going to see some salaried positions disappear and some workers slide back to hourly jobs. In other words, these new rules are going to hurt the very people officials say they’re trying to help.”

For businesses that operate on calendar year budgets, this unplanned mandate for increased labor costs in the final month of 2016 complicates matters. The Birmingham Business Journal spoke to several Birmingham employment law experts, who advised employers to begin planning and budgeting now, evaluating the job responsibilities and the hours worked for those who will no longer be exempt.

One small item of relief: Bonuses, incentive pay, and commissions can account for up to 10 percent of the salary threshold if the payments are made on a quarterly basis. However, the exemption level will continue to rise, tied to inflation, every three years, beginning on Jan. 1, 2020.

For more information, please visit NFIB.com/Overtime.

For the original article, click here.