Summary of June 2025’s Labor Law Cases in Birmingham, AL
This monthly legal update, brought to you by HKM Employment Attorneys, delivers the latest court rulings, legislative changes, and administrative updates affecting workers, HR professionals, and employers in Alabama. Stay informed on your workplace rights and compliance obligations. June 2025 brought tangible and meaningful updates to Alabama labor law—notably the federal court decision reducing procedural barriers, the addition of paid parental leave for state staff, and tax changes affecting employees. If your organization needs assistance navigating these updates or wants support in strengthening compliance, feel free to reach out to HKM Employment Attorneys at hkm.com. We’re here to help you stay informed and legally sound.
Williams v. Reed — Court Ruling
Date: February 21, 2025 (decision published earlier in 2025, but widely cited in June)
Summary:
The U.S. Supreme Court ruled in Williams v. Reed, 604 U.S. ____ (2025), that Alabama cannot impose state administrative exhaustion requirements that bar § 1983 claims challenging administrative delays. The Court held such state rules are preempted under the federal Ku Klux Klan Act.
Implications:
Employees in Alabama now have a clearer path to file federal civil‐rights claims in court without first exhausting state administrative processes. This development reduces procedural hurdles and strengthens individuals’ ability to challenge state-run employment or workforce actions.
Paid Parental Leave for State Employees — Legislation
Date: May 2025 (took effect June)
Summary:
During the 2025 legislative session, Alabama enacted a law granting paid parental leave to state employees, including up to eight weeks of maternity leave post-childbirth.
Implications:
This measure applies to teachers and other state employees—enhancing work–life balance, recruiting, and retention. It aligns Alabama with national standards on family leave and offers a meaningful workplace benefit.
Overtime Tax Exemption Expiration — Regulatory Update
Date: June 30, 2025
Summary:
Under Act 2024‑437, overtime wages paid between October 1, 2024 and June 30, 2025 were exempt from Alabama income tax, with specific reporting obligations. That exemption expired on June 30, 2025.
Implications:
Employers must now withhold and report income tax on overtime earned on or after July 1, 2025. Employers should update payroll procedures and inform employees of the tax change.
Other Legislative Highlights — June 2025 Session
Date: May 2025 session, relevant June implementation
Summary:
The legislature passed multiple laws that impact workplace practices:
- Sales tax exemptions on baby formula, diapers, menstrual hygiene goods (effective Sept 1/July)
- Glock switch ban, cellphone restrictions in schools, and Juneteenth recognized as a state holiday
- Regulations on hemp products, enhanced police legal immunity, and immigration enforcement measures
Implications:
Some of these—like Juneteenth official recognition—have symbolic workplace relevance. Others, like the Glock switch ban or hemp regulations, are peripheral but may affect employer liability and compliance policies.
Conclusion: Looking back on Birmingham, AL Labor Law Updates in June 2025
In light of Alabama court decisions involving wage and hour violations, contract disputes, discrimination, and whistleblower protections, local representation matters more than ever. At HKM Employment Attorneys in Birmingham, our largest plaintiff-side employment law team handles wrongful termination, breach of contract, non-compete agreements, unpaid wages, data breaches, FMLA and ADA claims, hostile environment cases, and comprehensive employee counseling. With award‑winning contract review, earnings recovery, and confidential, no‑fee‑unless‑we‑win advocacy, our Birmingham attorneys are equipped to translate recent case law into actionable legal strategies. If these stories hit home, don’t hesitate to contact our Birmingham office to explore how we can protect your rights locally.
