SB295 Alabama 2014 Session

Summary

Primary Sponsor

Bobby D. SingletonSenator

Democrat

Co-Sponsors

Quinton RossRodger SmithermanVivian Davis Figures

Session

Regular Session 2014

Title

Compensation, Alabama Minimum Wage Act, set state minimum wage for hourly and tipped employees, Commissioner of Labor to enforce, establish civil penalties

Summary

SB295 would establish Alabama's state minimum wage, set hourly and tipped wage rules, require enforcement by the Department of Labor, and provide for periodic cost‑of‑living increases with civil penalties for violations.

What This Bill Does

It creates a state minimum wage with hourly workers paid at least $12 per hour (starting 60 days after the act becomes law). Tipped workers must receive at least 70% of the minimum wage in gratuities, and their direct wages plus tips must not fall below the minimum wage; employers may use a tip credit to make up the difference. Starting January 1, 2020, and every three years after, the minimum wage increases by the same percentage as Alabama’s CPI, with the State Finance Director notifying the percentage and the Department of Labor posting changes on its website. The act also establishes enforcement by the Department of Labor, allows investigations and records requests, and imposes civil penalties for violations, plus damages for unpaid wages.

Who It Affects

• Employees (hourly workers and tipped employees) would be guaranteed a state minimum wage and have tip rules that influence pay, with the ability to recover unpaid wages if owed.
• Employers and businesses would be required to comply with minimum wage and tipped-wage rules, keep records, post notices, and could face penalties and legal costs for violations.

Key Provisions

• Establishes the Alabama Minimum Wage Act and sets a minimum wage of $12 per hour for hourly employees 60 days after enactment; tipped employees must be paid at least 70% of the minimum wage in gratuities and receive enough direct wages so total pay meets the minimum wage; tip credit may be used to cover the shortfall.
• Tipped wages may not be less than 30% of the minimum wage at any time; increases based on Alabama CPI occur every three years starting in 2020, with notifications and website posting of changes.
• Enforcement by the Alabama Department of Labor under the Commissioner; authority to investigate, inspect payroll records, require wage statements, issue subpoenas, and carry out the act; civil penalties of $500-$1,000 per violation; potential warnings for first unintentional violations.
• Employees can recover unpaid wages plus damages; court costs and attorney's fees may be awarded; three-year limit to file claims.
• Not intended to interfere with employees’ right to collective bargaining; act becomes effective immediately upon governor's approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Compensation