HB697 By Representatives Bracy, Grimsley and Alexander RFD State Government Rd 1 26-MAY-15

SYNOPSIS: Under existing law, the minimum wage required to be paid for persons doing work on, for or on behalf of this state, county, municipality, or any agency thereof, is established by the United States government.

This bill would establish a minimum wage for persons doing work for, or on behalf of, the state, a county, a municipality, or any agency thereof. The bill would provide for the adjustment of wages. The bill would provide that the minimum wage requirement would be applicable to all contracts in excess of a certain amount.

Amendment 621 of the Constitution of Alabama of 1901 prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose.

The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of Amendment 621. If this bill is not enacted by a 2/3 vote, it will not become effective with regard to a local entity unless approved by the local entity or until, and only as long as, the Legislature appropriates funds or provides for a local source of revenue.

A BILL TO BE ENTITLED AN ACT

To establish a minimum wage for persons doing work on, for or on behalf of the state, county, municipality, or any agency thereof pursuant to service or labor contract; to provide for the adjustment of the wages; to provide that the minimum wage requirement is applicable to all contracts in excess of a certain amount; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Amendment 621 of the Constitution of Alabama of 1901.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. The Legislature finds and declares that it is the policy of this state that all persons doing work on, for or on behalf of the state, a county, a municipality, or any agency thereof, should be paid a minimum living wage.

Section 2. (a) The minimum compensation paid to employees by employers who have been awarded a service or labor contract for or on behalf of the state, or a county or municipality, or any agency of the state or a county or municipality, in excess of twenty thousand dollars ($20,000) shall be as follows:

(1) If health insurance benefits consisting of payment of at least one dollar and twenty-five cents ($1.25) per hour toward the premium for the provision of health insurance for employees are provided, a wage of not less than nine dollars and fifty cents ($9.50) per hour. Proof of the provision of the benefit shall be submitted to the appropriate governing authority within 10 days after execution of the contract or receipt of the financial assistance of the governing authority to qualify for employees with health benefits.

(2) If health insurance benefits are not provided, a wage of not less than ten dollars and seventy-five cents ($10.75) per hour.

(b) These initial minimum rates shall be reviewed no later than February 10 of each year by the Alabama Department of Labor to determine if any adjustment should be made based on any change as of September 30 of the previous year in the federal poverty level standard in determining the initial wage adjustment. If the standard has changed, the minimum wages shall be recalibrated using the original methodology with the new values. If the standard has not changed, the Consumer Price Index for Urban Consumers in this state shall be reviewed. If the Consumer Price Index for Urban Consumers has increased by one percent or move, the minimum wage shall be adjusted by the same percentage change in the Consumer Price Index but it shall not exceed three percent.

(c) If the contract is subject to a prevailing wage requirement, the higher of the two wages shall apply.

Section 3. The requirements of this act shall apply only to the contracts specified in this act and shall not apply to any state, county, or municipal contract entered into prior to the effective date of this act.

Section 4. This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.

Compensation

Business and Labor

Labor

Labor Department

Contracts

State Agencies

Counties

Municipalities

Minimum Wage