HB71 Alabama 2016 Session

Summary

Primary Sponsor

Darrio Melton

Democrat

Session

Regular Session 2016

Title

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

Summary

HB71 would create a Alabama state minimum wage equal to the federal minimum wage, plus a yearly cost‑of‑living adjustment based on Alabama’s Consumer Price Index, with annual notices and public posting of changes.

What This Bill Does

If enacted, employers must pay at least the current federal minimum wage as adjusted by the CPI. The adjustment percentage is determined by CPI data from the completed calendar year before the start of each fiscal year. The Director of Finance must notify the Alabama Department of Labor in writing between October 1 and October 15 each year of the percentage to use for the next year’s increase, and the Department of Labor must post any wage change on its website. Violations allow employees to recover unpaid wages with interest, and the employer may also owe court costs and attorney’s fees; enforcement includes a three-year time limit to sue. The bill does not prevent employees from bargaining for higher wages, and the minimum wage increases by the same amount as the applicable CPI increase.

Who It Affects

• Employees in Alabama — would be guaranteed a minimum wage at least equal to the federal minimum wage, adjusted annually for inflation based on Alabama CPI data.
• Employers in Alabama — must pay at least that wage, keep posted records, and face penalties if they fail to pay the required amount.

Key Provisions

• Establishes a state minimum wage equal to the federal minimum wage plus a cost-of-living adjustment based on the Alabama CPI data reported by the U.S. Department of Labor; the adjustment percentage is tied to the completed calendar year before the start of the fiscal year.
• The Director of Finance must notify the Alabama Department of Labor in writing between October 1 and October 15 each year of the percentage to be used for the next calendar year’s COLA; the Department of Labor must post any change on its website.
• Employers must pay at least the current federal minimum wage and keep a posted summary of the act and applicable regulations; violations allow back pay with interest and may require payment of court costs and attorney’s fees; actions must be brought within three years.
• The act preserves employees’ right to bargain for higher wages and provides for CPI-based automatic increases; it becomes effective immediately upon enactment.

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

Subjects

Business and Commerce