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House backs new felony for theft of employees' retirement contributions
Summary
Lawmakers approved Senate Bill 244 to criminalize intentional diversion of employee retirement contributions by local employers or staff. Debate focused on felony classes and thresholds, defenses for staff acting under direction, and concerns about harsh penalties and recidivism.
The Alabama House passed Senate Bill 244 after extended floor debate over penalties and how the law would be enforced against local officials and payroll staff who divert employee retirement contributions instead of submitting them to the Retirement Systems of Alabama (RSA).
Supporters described the measure as closing a legal gap that left RSA with civil remedies but no criminal recourse when employers or their payroll staff refused to remit withheld retirement contributions. Sponsor Chairman Pettis told members the bill…
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