The current law in Alabama exempts Alabama state tax withholdings on amounts paid to non-exempt (biweekly paid) employees as overtime compensation. This law will expire June 30, 2025. As of July 1, 2025, UAB will resume withholding Alabama state income tax from any FLSA overtime wages paid to non-exempt employees. Employees with questions can contact Payroll Services at This email address is being protected from spambots. You need JavaScript enabled to view it..