HB19 Signed by Governor Bentley; Casual Pay Limit Increased for the First Time in 32 Years

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Posted by: Matt Boster
Date: May 21 2015 1:51 PM

MONTGOMERY – Governor Robert Bentley signed HB19 into law last week. The bill, sponsored by Representative Jack Williams (R), Birmingham, in the House and by Senator Clyde Chambliss (R), Prattville, in the Senate, increases the amount of wages an individual can earn during the week and still be eligible for unemployment compensation benefits.

Until this bill’s passage, an individual could only earn $15 a week without having an impact on the amount of unemployment compensation benefits they could receive. These wages are known as "casual pay." HB19 increases this amount to one-third of a recipient’s weekly benefit amount. For example, if someone is receiving the maximum weekly benefit of $265, they could now earn up to $88 with no impact on their benefits.

"This is much needed legislation that allows people to work at part-time jobs and earn money, while still being able to draw their unemployment benefits," said Fitzgerald Washington, Commissioner of the Alabama Department of Labor. "We know that part-time jobs often lead to full-time employment, and we don’t want to punish workers for trying to get ahead."

"This bill will help put people back to work," said Rep. Williams. "We want everybody to be able to take advantage of any opportunity they may find in order to support their families. If someone is able to turn a part-time job into a full-time one because of this bill, then it’s served its purpose."

The last time the casual pay amount was increased was in 1983.

"In raising this limit, we’re bringing Alabama in line with the rest of country," added Sen. Chambliss. "We previously had one of the lowest casual pay limits in the country. This bill rectifies that."

The bill was also endorsed by Governor Bentley’s Small Business Commission.

The casual pay limit increase will become effective on August 1, 2015.

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