HB42 Alabama 2015 Session

Summary

Primary Sponsor

Darrio Melton

Democrat

Session

Regular Session 2015

Title

Wages, establish the Alabama Minimum Wage Act, to set the state minimum wage, provide for a cost of living increase, const. amend.

Summary

HB42 would amend the Alabama Constitution to create a state minimum wage of $9.80 per hour by 2018, with CPI-based increases every three years starting in 2020 and rules for tipped workers and enforcement.

What This Bill Does

It would set a state minimum wage of $9.80 per hour by January 1, 2018, with two earlier increases in 2017 to $8.10 and $8.95. Starting January 1, 2020, the minimum wage would rise every three years by the amount of the Consumer Price Index change for Alabama, as reported by the U.S. Department of Labor. Tipped workers must receive at least 30% of the minimum wage, and tips must total at least 70% of the current minimum wage; if tips plus direct wages do not reach the minimum, the employer must cover the difference via a tip credit. The bill also requires notices and postings by state agencies, prohibits displacing workers to hire at the new wage, requires posted summaries, and provides penalties for unpaid wages while preserving the right to bargain for higher pay.

Who It Affects

• Employees in Alabama, who would receive a higher minimum wage and tipping protections.
• Employers in Alabama, who would need to adjust pay, payroll records, notices, and comply with enforcement provisions.

Key Provisions

• Sets minimum wage at $9.80/hour by January 1, 2018, with $8.10 on January 1, 2017 and $8.95 on July 1, 2017.
• Requires minimum wage increases starting January 1, 2020 and every three years based on the Consumer Price Index for Alabama as reported by the U.S. Department of Labor; uses July 1 index as reference.
• Tipped employees may not be paid less than 30% of the minimum wage; tips must total at least 70% of the current minimum wage; if needed, employers must cover the difference through a tip credit arrangement.
• Prohibits displacing an employee to hire at the new wage (no firing or reducing hours/benefits to hire someone at that wage).
• Requires employers to post a summary of the amendment and applicable wage orders; requires the Labor Department to post changes on its website; requires the State Finance Director to notify the Labor Department between October 1-15 each year of the COLA percentage for the next three years.
• Violations allow employees to recover unpaid wages plus interest, plus court costs and reasonable attorney’s fees; action must be brought within three years.
• Does not interfere with employees’ right to bargain collectively for wages higher than the minimum.
• Defines key terms: employee, employer, wages, and tipped employee.

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

Subjects

Constitutional Amendments