HB697 Alabama 2015 Session

Summary

Primary Sponsor

Napoleon BracyRepresentative

Democrat

Session

Regular Session 2015

Title

Minimum wage estab. for persons doing work for st., co., or mun. pursuant to service or labor contract, wage adjustments

Summary

HB697 would set a new minimum wage for workers on state, county, or city service or labor contracts, with annual adjustments and local-funding constraints.

What This Bill Does

It creates a minimum wage for workers paid under contracts with the state, counties, or municipalities that exceed $20,000. The wage is $9.50 per hour if health insurance benefits are provided (with at least $1.25 per hour toward the premium) or $10.75 per hour if no health benefits are provided, with proof required within 10 days. The wages are reviewed annually by the Alabama Department of Labor and adjusted based on changes in the federal poverty level or the state CPI, up to a 3% cap. If a contract has a prevailing wage requirement, the higher wage applies. The act does not apply to contracts entered before it becomes law and becomes effective after a specified delay; it also creates local-funding considerations under Amendment 621, meaning some local expenditures would require a 2/3 vote, local approval, or legislative funding.

Who It Affects

• Contractors/employers who have service or labor contracts with the state, counties, or municipalities and exceed $20,000, who would be required to pay the new minimum wage amounts and provide health-benefit proof as applicable.
• Workers employed under those state/county/municipal contracts, who would receive the new minimum wages and any required annual adjustments; local governments and state agencies awarding these contracts would need to budget for potential higher wage costs or obtain local approval or funding.

Key Provisions

• Establishes a minimum wage for employees under state, county, or municipal service or labor contracts exceeding $20,000.
• Wage rate is $9.50/hour if health insurance benefits are provided (minimum $1.25/hour toward premiums); $10.75/hour if benefits are not provided, with proof due within 10 days after contract execution or funding.
• Annual wage adjustment by the Alabama Department of Labor based on changes in the federal poverty level or CPI, with a 1% threshold and a cap of 3% if CPI increases.
• If a contract includes a prevailing wage requirement, the higher of the prevailing wage or the minimum wage applies.
• Not retroactive to contracts entered into before the act's effective date; the act becomes law on a delayed effective date.
• Local funding implications under Amendment 621; increases in local expenditures require a 2/3 vote, local approval, or Legislative appropriation for the measure to take effect locally.

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