Alabama Paycheck Laws

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 What Are the Paycheck Laws of Alabama?

Getting paid the amount your employer owes you on time can be the difference between paying bills on time and sliding into delinquency. It can also be very confusing if the state or other organizations have taken money out of your paycheck, but you were unaware of these deductions beforehand.

It can be very important to understand how the laws in Alabama work regarding paychecks. Leaving a job is difficult enough, but even more difficult if you do not receive your last paycheck. The same is true if you dispute with your current employer over paychecks you never received.

When Must Paychecks Be Sent Out in Alabama?

Unlike some states, which require employers to pay employees at least once or twice a month, Alabama does not have a specific law requiring when your paycheck should be sent out. You will need to check with your company to find out their policy and when you should expect to be paid. If you have an employment contract, look there. If you don’t have one, look at the employee handbook – it is typically written there.

Often, the company will set the paycheck schedule and spell it out specifically in your employment contract. If your employer fails to send out checks at the agreed-upon time, they may face legal liability. This can be a major issue if it is widespread and many employees are affected by the violation.

It is important to keep track of when your paycheck is supposed to be sent out and to inform your employer if you never received it. While there may be delays due to holidays, processing, and weekends, be sure to inquire about the latest date the paycheck should arrive and when you should let them know if it does not show up.

What Happens to My Paycheck If I am Fired or If I Quit in Alabama?

Since Alabama has no laws about when you should get your last paycheck, there is no difference in whether you were fired or quit as to when you can expect it. It is up to the company to determine when you will receive your last paycheck.

If your employer provides paid vacation or sick benefits, whether they have to pay you for unused paid time off will be covered in your employment contract or company policy statements (often set out in the employee handbook). So, it depends on your particular company policy about paying leftover benefits.

You might have to follow certain rules to qualify for the benefits, such as giving 2 weeks’ notice. If quitting affects your accrued leave, then the impact should be in your employment contract or company handbook.

Can My Paycheck Be Garnished Under Alabama Employment Law?

There are a lot of reasons why your paycheck might be garnished. Wage garnishment occurs when a person has outstanding debt that needs to be collected, such as unpaid child support or credit card debt. In a wage garnishment arrangement, a court authorizes the person’s employer to set aside part of their paycheck to be used for the repayment of the debt. The employer will then send the payment amounts to the court or to a third-party agency that will process it with the court.

Your paycheck can have money taken out of it to pay for your debts, but a court order may be needed before the money can be taken. Under Alabama law, an automatic garnishment can be placed on your wages for specific debts, including back child support, defaulted student loans, and taxes. For all other garnishments, such as personal debt, the company to which you owe money has to go to court first and ask that your paycheck be garnished.

If your paycheck is being garnished, you can file a motion to stop wage garnishment if your income is very small. You can also stop the garnishment by declaring bankruptcy.

Under federal law, you can have deductions taken from your final paycheck to cover company property you lost or did not return or property that you damaged. Since Alabama does not have its own laws about these deductions, an employer can take out funds from your paycheck to cover any lost or broken property.

Can I Recover a Withheld Paycheck in Alabama?

When a company refuses to provide your paycheck, whether a final check or one that is part of ongoing employment, it is called withholding salary. Under the Fair Labor Standards Act (FLSA), there are a couple of options available to you via the federal government to get any money an employer owes you:

  • The Wage and Hour Division of the federal Department of Labor (DOL) can try to get unpaid wages for you
  • The Secretary of Labor can sue your employer for back pay and make your employer pay a penalty.

You can also file a complaint with the State of Alabama Department of Labor, which will investigate on your behalf.

Finally, you can also sue your employer yourself if you are not given your paycheck. This is called a “Wage and Hour” claim.

What Is a Wage and Hour Claim?

In many cases, the issue with a paycheck involves miscalculation of the number of hours the employee has worked, or a mistake regarding their pay rate. For example, a person might receive a paycheck, but it might not be for the full amount owed due to some issue with calculating their hours. In other cases, the amount paid might not be correct because of an error, oversight, or intentional issue with their wage rate.

A wage and hour lawsuit may be necessary in these situations. These types of claims allow the courts to review the situation and determine the appropriate remedy for the employee. In some cases, many other employees may be affected as well (such as when there is a policy in the office that violates wage laws).

If many workers have had the same problem with their paychecks, a lawsuit may be filed as a class action suit. In a class action suit, a group of people with similar complaints band together and sue the defendant as if they were one plaintiff. If the defendant loses, the defendant will have to make a single large payment to cover all that is owed to the whole group of people. They will then divide it up amongst the class’s members.

A class action suit can be very helpful if the amount of money you would individually sue for is relatively low – particularly if it is not high enough to be economically practical to file your own personal lawsuit. By uniting your claims with those of your co-workers, you will share all of the costs of bringing a lawsuit with the group members.

Where Can I Find the Right Lawyer for a Paycheck Issue in Alabama?

Whenever you are trying to get paid, it can be a particularly difficult situation. An Alabama employment lawyer can help you navigate the complicated paths within the government and the courts to secure the pay that you are owed and to stand up against your employer. They can provide you with the legal advice and representation needed for your case.

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