HB26 Alabama 2017 Session

Summary

Primary Sponsor

Juandalynn GivanRepresentative

Democrat

Session

Regular Session 2017

Title

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

Summary

HB26 creates a state minimum wage in Alabama for hourly and tipped workers, with enforcement, penalties, and regular increases tied to the cost of living.

What This Bill Does

It establishes the Alabama Minimum Wage Act, setting a state minimum wage for hourly workers and a rule for tipping workers. It starts with $10 per hour for hourly workers (60 days after the act becomes law) and requires tipped workers to receive at least 30% of the minimum wage at all times, with tips and employer pay making up the rest. The minimum wage is adjusted every three years using the Alabama portion of the Consumer Price Index, with the State Finance Director and the Department of Labor handling notices and posting the changes. It also creates rules for enforcement by the Department of Labor, allows penalties for violations, and provides wage recovery and attorney's fees for employees.

Who It Affects

• Employees: hourly workers and tipped workers in Alabama, who would be guaranteed a state minimum wage with a tip credit provision and potential wage recovery if underpaid.
• Employers: Alabama employers who must pay the new minimum wage, keep records, display notices, and may face penalties and civil actions if they violate the law.

Key Provisions

• Establishes the Alabama Minimum Wage Act and assigns enforcement to the Secretary of the Alabama Department of Labor, with civil penalties for violations.
• Sets initial minimum wage at $10 per hour for hourly workers (60 days after the act becomes law) and requires tipped employees to receive at least 30% of the minimum wage at all times, with tips and employer pay making up the rest.
• Provides for automatic cost-of-living adjustments every three years starting Jan 1, 2020, based on the CPI for Alabama; the State Finance Director must notify the percentage by Oct 1-15 each year, and the Department of Labor must post wage changes on its website.
• Imposes penalties and remedies for noncompliance, including back wages, damages, court costs, and attorney's fees; allows investigations and requires recordkeeping and posting; 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