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ALABAMA: Payroll law update, July-Dec. 2011

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in Office Management,Payroll Management

Work authorization. Beginning Jan. 1, 2012, general contractors and subcontractors contracting with the state or a political subdivision must present proof that they are enrolled in E-Verify. Beginning April 1, 2012, all employers must enroll in E-Verify.

Employers that continue to employ unauthorized workers may be ordered to terminate their employment, and may be subject to a three-year probationary period during which they must file quarterly reports detailing new hires with the local district attorney. Employers that commit second offenses may have their business licenses permanently revoked. In addition, employers can’t deduct the wages paid to unauthorized workers. Employers that knowingly fail to comply with these provisions will be liable for a penalty equal to 10 times their claimed business expense deductions. (H.B. 56, L. 2011)

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