Alabama Employment Law Update – June 2017

Alabama

Franchise Business Protection Act

On May 26, 2017, Alabama Governor Robert Bentley signed the Alabama Franchise Business Protection Act (H.B. 390). Under the act, and except as provided in a voluntary agreement between the U.S. Department of Labor and a franchisor, the following may not be considered an employee of a franchisor:

  • A franchisee.
  • An employee of a franchisee.
  • An independent contractor working for a franchisee.

To the extent that these provisions do not conflict with federal law, the act only applies to the following:

  • The enforcement or enactment of rules or ordinances by state agencies or local governmental bodies.
  • Labor relations and collective bargaining.

The law is effective July 1, 2017.

Read AL H.B. 390

Health Benefit Mandates

On May 19, 2017, Alabama Governor Robert Bentley signed legislation (H.B. 284) requiring health benefit plans to cover the treatment of autism spectrum disorder. This requirement applies to plans delivered, executed, issued, amended, adjusted, or renewed in Alabama on or after October 1, 2017, for employers with a minimum of 51 employees on at least half of the working days during the preceding calendar year.

The law is effective October 1, 2017.

Read AL H.B. 284