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Alabama - Compensation & Benefit Legislation

ALABAMA - AASHOWME

Demonstrates www.BenefitsReview.com™. Illustrates insurance carriers' coverages within the State.

 

ALABAMA - ADOPTED CHILD HEALTH CARE MANDATE

OBRA 1993 (Federal) requires group health plans to honor medical and child support orders. Also, plans must treat adopted children like biological children covered by the plan, and plans are precluded from applying pre-existing condition exclusions to an adopted child where no such exclusion applies to a newborn biological child. Health plans that covered the cost of pediatric vaccines as of May 1, 1993, and fail to continue that level of coverage, will be subject to an excise tax penalty applicable to plans that fail to meet the health care continuation coverage requirements under OBRA 1993.

 

ALABAMA - ALCOHOLISM & DRUG ABUSE

Employer option (alcoholism treatment only).

 

Minimum yearly inpatient coverage: 30 days inpatient or equivalent. (1 day inpatient equals 2 days at short-term residential facility or 3 days outpatient treatment.)

 

Minimum yearly outpatient: 30 days inpatient or equivalent (1 day inpatient equals 2 days a short-term residential facility or 3 days outpatient treatment.)

 

Minimum lifetime coverage: No statutory requirements. (Alabama Code Section 27-20A-4)

 

ALABAMA - CAFETERIA PLAN TAX LAWS

State income tax, unemployment insurance tax on salary reduction: Employer and employee contributions are not subject to state income tax to the extent employees elect nontaxable benefits. However, certain municipalities, including Birmingham, include cafeteria plan contributions in taxable income. For state unemployment insurance purposes, there are no specific provisions regarding cafeteria plans; taxability of employer contributions depends on the type of benefits provided. Employee salary reductions for the purchase of group-term life insurance are taxable if the employee has the option of receiving either insurance or cash.

 

ALABAMA - CONTINUATION OF COVERAGE CONVERSIONS

State reports no statutory requirements.

 

ALABAMA - COORDINATION OF BENEFITS

Requires the use of the birthday rule if coordinating benefits, effective August 29, 1987. Statute based on 1985 National Association of Insurance Commissioner Rules model. (Alabama Ins. Dept. Reg. No. 56)

 

ALABAMA - COST-OF-LIVING

ERI's Relocation Assessor™™ is a recommended source for U.S./Canadian cost-of-living data and U.S. Automobile Cost Survey.

 

ALABAMA - DRUG TESTING AND EMPLOYEE ASSISTANCE BENEFITS

Who is Covered by Statute: All employer's subject to state's worker's compensation law.

 

Applicant Testing: Required to qualify for worker's compensation insurance premium discounts.

 

Employee Testing: Employee testing is allowed.

 

How Test Results are Used: Employers must establish reasonable rules related to possession, use, sale, or solicitation of drugs and may take action based on a violation of those rules.

 

Enforcement of Statutes: State has no statutory requirements.

 

Employee Remedies: State has no statutory requirements.

 

Employer Penalties: State has no statutory requirements.

 

Who Pays for Testing? Employer shall pay all costs related to drug testing as required by the employer. Employee or applicant shall pay the cost of any additional tests not required by the employer.

 

Employee Assistance Benefits: Employer must advise employees of EAP, if employer offers program, or advise employees of employer's resources of assistance programs.

 

Other Requirements: One time only , prior to testing, all employees and job applicants shall be given a notice of testing.

 

(Alabama Code Sections 25-5-330-25-5-240)

 

ALABAMA - GROUP HEALTH CODE ADDITIONS (MANDATED)

Alcohol Treatment: Insurers must offer group policyholders coverage for at least 30 days of inpatient treatment or its equivalent per year. (Alabama Code Section 27-20A-4)

 

Disclosure of Plan Terms: Health insurance providers including HMOs must provide covered individuals with written descriptions of the terms and conditions of the plan in an easily understandable format; plan descriptions must include benefits included or excluded, services excluded or limited, prior authorizations, explanation of financial responsibilities, details of plan operations, and phone numbers for additional information. (H395, 1996)

 

Maternity: Effective 10/1/96, insurers that provide maternity coverage must provide coverage for medically necessary inpatient care for a mother and her newly born child as determined by her physician, certified nurse midwife, or the child's attending pediatrician. (H624, 1996)

 

Newborns: Policies providing family coverage must provide benefits for newborns from the moment of birth for injury or sickness including treatment of medically diagnosed congenital defects and birth abnormalities. (Alabama Code Section 27-19-38)

 

Primary Care: Effective 10/1/96, insurers, including HMOs, must include obstetricians and gynecologists as primary care physicians; referral from a primary care physician must not be a condition for coverage of services of an obstetrician or a gynecologist. (H625, 1996)

 

Providers: Chiropractors, podiatrists, dentists, psychiatrists, psychologists, optometrists, and certified nurse anesthetist: Costs for services must be covered if the provider is licensed, the service is within the provider's scope of services, and the service is covered by the policy. (Alabama Code Sections 27-1-10, 27-1-11, 27-1-15, 27-1-18, 27-19-39, 27-46-1)

 

Sickle Cell Anemia: Insurers cannot deny coverage to persons with sickle cell anemia or deny claims for treatment of the condition. (Alabama Code Section 27-5-13)

 

ALABAMA - GROUP HEALTH FOR SMALL EMPLOYERS

For insurance plans offered to small employers:

 

Eligibility Criteria: Employers who during 50% of preceding quarter employed at least 2 (but not more than 50) employees, the majority of whom were employed within the state.

 

Restrictions on premiums: State has no statutory requirements.

 

Restrictions on cancellation: State has no statutory requirements.

 

Pre-existing Conditions: State has no statutory requirements.

 

Other: State has no statutory requirements.

 

(Alabama Code Section 27-52-21.)

 

ALABAMA - GROUP LIFE CODE ADDITIONS

Employer required to pay part of premium: No.

 

Percent of employees who must elect coverage (if employees pay part of premium): No statutory requirements.

 

Percent of employees who must be covered if employer pays all of premium: No statutory requirements.

 

Minimum number of employees in group plan: No statutory requirements.

 

Employer prohibited as beneficiary: No.

 

Grace period (days): 30.

 

Mandatory conversion: Yes.

 

Other provisions: none. (Alabama Code Sections 27-18-3, 27-18-11)

 

ALABAMA - HOLIDAYS

January 1, Washington's Birthday (or 3rd Monday in February), Memorial Day (or last Monday in May), July 4, Labor Day (or 1st Monday in September), Veterans Day, and December 25 are state holidays in all 50 states and in the District of Columbia. Other holidays under State law include: Martin Luther King's birthday (or 3rd Monday in January), Columbus Day (or 2nd Monday in October), Thanksgiving, Sunday.

 

Other: State employees get one personal leave day per year (except in Baldwin and Mobile counties); days declared by Governor to be state holidays in honor of special events. If any holiday falls on Sunday, following Monday is a holiday; if holiday falls on Saturday, preceding Friday is a holiday. (Alabama Code Section 1-3-8)

 

ALABAMA - IMMIGRATION (PREVAILING WAGE POLICY)

See U.S. Federal General Administrative Letter 1-2000

 

ALABAMA - JURY DUTY & WITNESS TIME OFF

Employer Restriction for Discharging Employee for Taking Leave For Jury Service: Yes.

Remedies and Penalties: Employee can bring civil action for actual and punitive damages.

 

Other Requirements: Full-time employees are entitled to their usual compensation less any compensation received for jury service from the Courts. (Alabama Code Sections 12-16-8, 12-16-8.1)

 

Employer Restriction for Discharging Employee for Taking Leave to be a Witness: State reports no statutory requirements.

 

ALABAMA - LEAVES OF ABSENCE

Employers Subject to Leave Laws: State Employees.

 

Criteria for Eligibility: State Employees.

 

Maximum Length of Leave: Employees accrue leave at the rate of 4 hours biweekly period worked, and may take of up 150 days for sick leave. For serious illness, employees may be advanced up to 24 days.

 

Paid Leave: Leave may be paid.

 

Acceptable Reasons for Leave: Serious illness of employee or of family member; leave may be used in lieu of maternity leave for days employee is actually disabled.

 

Employment Guarantees After Leave: State reports no statutory requirements.

 

Use of Vacation or other Time-off Benefits: State reports no statutory requirements.

 

Certification Required: Certification may be required for medical leave.

 

Effect Of Leave on Other Benefits: State reports no statutory requirements.

 

Effect of Seniority Accrual During Leave: State reports no statutory requirements.

 

Minimum Requirements for Notification to Employer: State reports no statutory requirements.

 

Conditions for Denial of a Request For Leave: State reports no statutory requirements.

 

(Alabama Administrative Code 670-X-14-.01, 670-X-14-.01)

 

See U.S. Federal Family and Medical Leave Act

 

ALABAMA - LONG TERM DISABILITY CODE ADDITIONS

State does not require employer to provide long term disability benefits; although many employers do in order to remain competitive in hiring/retention of employees.

 

See LEAVES OF ABSENCE (above) & WORKERS' COMPENSATION (below) and

U.S. Federal Americans With Disabilities Act

 

ALABAMA - MANDATED PROVIDERS

Optometrists, chiropractors, dentists, psychologists, podiatrists. Mandatory coverage for certified nurse anesthetists, home care providers, and any practitioner of the healing arts. (Alabama Code Sections 27-1-10, 27-1-11, 27-1-18, 27-1-19, 27-10-39, 27-19A-4, 27-46-1. But coverage for certified nurse anesthetists is preempted by ERISA for ERISA-governed plans. Hayden v. Blue Cross and Blue Shield, 843 F. Supp. 1427 (M.D. Alabama 1994))

 

ALABAMA - MENTAL HEALTH CARE

State reports no statutory requirements.

 

ALABAMA - MINIMUM WAGE

Refer to the Federal minimum wage: $5.15 per hour (effective September 1, 1997).

 

State reports no statutory requirements.

 

See U.S. Minimum Wage

 

ALABAMA - NEW HIRE REPORTING

Who is required to report: All employers.

 

Who must be reported: All new employees and rehires.

 

Exempt from reporting: No exemptions.

 

Form(s) to file: State form or W-4 form.

 

Filing deadline: Within 7 days of hire.

 

Employer information to be included: Name, address, and state and federal EIN.

 

Employee information to be included: Name, address, SSN, and date employee began work.

 

Penalty for failure to report: -

 

(House Bill No. 97-228.)

 

ALABAMA - NEWBORN CARE MANDATE

Mandated care.

 

Preventive care for children: No. (Alabama Code Section 27-19-38)

 

ALABAMA - PARENTAL LEAVE

State reports no statutory requirements.

 

See U.S. Federal Family and Medical Leave Act

 

ALABAMA - PRE-EXISTING CONDITIONS

State reports no statutory requirements.

 

See U.S. Federal HEALTH INSURANCE PORTABILITY & ACCOUNTABILITY ACT

 

ALABAMA - PROTECTED CLASSIFICATIONS

Age: Yes, age 40 and over.

 

Race:  No.

 

Color:  No.

 

National Origin: No.

 

Ancestry:  No specific law. State has expressed policy against discrimination.

 

Religion:  No.

 

Sex:  No.

 

Pregnancy:  No specific law. State has expressed policy against discrimination.

 

Sexual Harassment:  No specific law. State has expressed policy against discrimination.

 

(State has no comprehensive Fair Employment Practice Act.)

 

ALABAMA - SALARY SURVEY

ERI's Relocation Assessor™™ is a recommended source for U.S./Canadian wages & salaries (covering 3,000 positions).

 

ALABAMA - SHORT TERM DISABILITY CODE ADDITIONS

State does not require employer or employee participation in short term disability plans.

 

ALABAMA - TERMINATION & SEVERANCE PAY

State reports no statutory requirements.

 

ALABAMA - UNEMPLOYMENT TAX

Employer Contributions:

 

Voluntary Contribution Provision: No. State reports no statutory requirements.

 

(Alabama Code Sections 25-4-16, 25-4-40.1, 25-4-51, 25-4-54, 25-4-116)

 

ALABAMA - VACATION PAY

State reports no statutory requirements.

 

ALABAMA - VOTING TIME OFF

State reports no statutory requirements.

 

ALABAMA - WORKERS' COMPENSATION

Private Employers: Mandatory coverage for employers with 5 or more employees. Coverage of partners or sole proprietors is elective. Corporate officers may reject coverage.

 

Public Employers: Mandatory coverage to all public employees except municipalities of less that 2,000 in population. Certain school systems and institutions covered. (Note: Employees of all county and city boards of education, Alabama Institute for the Deaf and Blind, and 2-year colleges under state Board of Education Control. Special act covers employees of U.S.S. Alabama Battleship Commission and authorizes excess medical care benefits, not to exceed $10,000 per employee; also for employees of Department of Agriculture and Industries. Special Act covers employees of Tannehill Furnace and Foundry Commission.)

 

Exceptions: Domestic servants and casual employees.

 

Special Coverage Provisions: Voluntary for employers with less than 5 employees, including farmers and volunteer fire departments. (Note: Employer electing not to accept coverage must notify each employee in writing. Regular employer of a volunteer firefighter or rescue squad worker is in no way liable for compensable injury.) (U.S. Chamber of Commerce, 1994 Analysis of Workers' Compensation Laws.)