HB70 Alabama 2016 Session

Summary

Primary Sponsor

Darrio Melton

Democrat

Session

Regular Session 2016

Title

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

Summary

This bill would create a state minimum wage in Alabama through a constitutional amendment, starting at $10.10 per hour in steps by 2018, with automatic CPI-based increases every three years thereafter.

What This Bill Does

Sets a state minimum wage of $10.10/hour, reached in three steps: $8.20 on Jan 1, 2017; $9.15 on July 1, 2017; and $10.10 on Jan 1, 2018. Starting Jan 1, 2020, the wage would rise every three years based on the Alabama CPI with annual notices to the Department of Labor, and changes would be posted on the Department’s website. It protects tipped workers by requiring tips plus wages to meet the minimum wage and keeping tipped pay from falling below 30% of the minimum, while allowing a wage top-up if gratuities don’t reach the minimum. It also prohibits firing or reducing hours to avoid the new wage, requires posting of wage information, and imposes penalties for wage violations, while preserving workers’ right to bargain collectively.

Who It Affects

• Employees in Alabama (including tipped workers) would gain a higher minimum wage and protections around tips and wage calculations.
• Employers in Alabama would need to adjust pay to meet the new minimum wage, track and post wage changes, and could face penalties for noncompliance.
• State agencies (State Finance Director and Alabama Department of Labor) would handle notice to employers and publicly post wage changes.

Key Provisions

• Establishes a state minimum wage of $10.10 per hour, with increases in three steps by January 1, 2018.
• Beginning January 1, 2020 and every three years, adjusts the minimum wage based on the Consumer Price Index for Alabama; the State Finance Director must notify the Department of Labor of the adjustment percentage each October for the next three years; the Department must post changes on its website.
• Defines wages, employees, employers, and tipped employees; sets a rule that tipped wages may not fall below 30% of the minimum wage, provided the employee receives at least 70% of the current minimum wage in gratuities, and requires a wage credit if gratuities do not reach the minimum.
• Prohibits employers from displacing an employee to hire someone at the minimum wage; requires posting a summary of the amendment and wage rules at the workplace; allows for unpaid wage penalties with interest, court costs, and attorney fees, with a three-year filing window.
• Preserves employees’ right to bargain collectively and does not interfere with collective bargaining.
• Requires employers to maintain posted notices of the amendment and any wage orders or regulations.

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