HB352 • 2026

Alabama Jobs Act; Secretary of Commerce prohibited from awarding economic tax incentives to companies that do not practice certain employment protections for workers

Labor Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Rafferty
Last action: 2026-01-29
Official status: Pending Committee Action in House of Origin
Effective date: Not listed

Plain English Breakdown

The official status shows conflicting information: one label says 'Passed Legislature' while another lists 'Pending Committee Action'. The effective date is set for October 1, 2026, but the rules apply starting January 1, 2027.

Alabama Jobs Act: Worker Rules for Tax Incentives

This bill stops the Secretary of Commerce from giving tax breaks to companies unless they promise specific rules about overtime, shift schedules, weekend work, emergency leave, and break times.

What This Bill Does

Requires companies seeking Alabama Jobs Act incentives to certify they follow seven employment protections for the duration of the incentive.
Prohibits requiring employees to work mandatory overtime.
Bans rotating shift schedules where an employee must change from one type of shift to another on a regular basis.
Mandates at least 40 hours of paid emergency leave per year for each employee.
Guarantees a full 40-hour work week unless an unexpected event threatens worker health, safety, or welfare.
Stops companies from requiring employees to do job tasks before clocking in or after clocking out.
Prohibits counting time spent walking between the workstation and a bathroom or breakroom as part of the employee's official break.

Who It Names or Affects

Companies applying for economic tax incentives under the Alabama Jobs Act
The Secretary of Commerce who awards these incentives
Employees working at companies that receive these specific state tax breaks

Terms To Know

Economic Tax Incentives: Financial benefits or reduced taxes given by the government to help businesses grow.
Shift Rotation: A schedule where workers must switch between different shifts, such as morning and night, on a repeating cycle.

Limits and Unknowns

The rules only apply to companies receiving incentives under the Alabama Jobs Act.
The bill becomes effective on October 1, 2026, but the restrictions start applying after January 1, 2027.

Bill History

2026-01-29 House
Pending Committee Action in House of Origin
2026-01-29 House
Read for the first time and referred to the House Committee on State Government

Official Summary Text

Alabama Jobs Act; Secretary of Commerce prohibited from awarding economic tax incentives to companies that do not practice certain employment protections for workers

Current Bill Text

Read the full stored bill text

HB352 INTRODUCED
Page 0
HB352
4UGZXII-1
By Representative Rafferty
RFD: State Government
First Read: 29-Jan-26
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4UGZXII-1 10/16/2025 GP (L)lg 2025-2998
Page 1
First Read: 29-Jan-26
SYNOPSIS:
Under the Alabama Jobs Act, certain projects
qualify for economic tax incentives awarded by the
Secretary of Commerce.
This bill would require any company receiving an
economic tax incentive under the Alabama Jobs Act to
certify that the company does not require overtime,
does not practice shift rotation, does not require
weekend work, provides emergency leave, guarantees a
full work week, does not require off-the-clock work,
and does not count the time an employee spends
transitioning to or from a bathroom or breakroom to
count toward the employee's allotted break time.
A BILL
TO BE ENTITLED
AN ACT
Relating to economic incentives; to add Section
40-18-372.1 to the Code of Alabama 1975; to prohibit companies
receiving certain economic tax incentives from certain
employment actions; and to require those companies to provide
certain employment protections for workers.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
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HB352 INTRODUCED
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BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 40-18-372.1 is added to the Code of
Alabama 1975, to read as follows:
§40-18-372.1
Notwithstanding any law to the contrary, on and after
January 1, 2027, the Secretary of Commerce may not find any
project to be a qualifying project under Section 40-18-372
unless the company seeking a job act incentive certifies that
the company, for the duration of any tax incentive received
under this article:
(1) Does not require mandatory overtime of any
employee;
(2) Does not engage in shift rotation whereby an
employee is asked or required to work a shift that changes
from one shift to another on a rotating basis;
(3) Does not require any employee to work weekends;
(4) Entitles an employee to at least 40 hours annually
of paid emergency leave;
(5) Guarantees a 40 hour work week unless an
unforeseeable event occurs that threatens the health, safety,
or welfare of the employees;
(6) Does not require any employee to perform tasks that
would reasonably be considered part of an employee's job
duties before or after the employee has clocked in or out or
outside the employee's shift; and
(7) Does not require an employee to use any portion of
his or her entitled break time to transit from the employee's
work station to a bathroom or breakroom.
Section 2. This act shall become effective on October
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HB352 INTRODUCED
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Section 2. This act shall become effective on October
1, 2026.57