HB71 By Representative Melton RFD State Government Rd 1 02-FEB-16

SYNOPSIS: Currently, Alabama does not have a state minimum wage law.

This bill would establish a state minimum wage for Alabama equal to the federal minimum wage adjusted for any increase in the Consumer Price Index for Alabama as reported by the United States Department of Labor.

This bill would provide that the Consumer Price Index data for the completed calendar year preceding the beginning month of a fiscal year would determine the percentage of the increase in the state minimum wage.

This bill would require the Director of Finance to notify the Alabama Department of Labor in writing between October 1 and October 15 each year of the percentage to be used for the cost-of-living adjustment for the next calendar year.

This bill would require the Alabama Department of Labor to post any change in the state minimum wage on its website.

A BILL TO BE ENTITLED AN ACT

Relating to wages; to establish a state minimum wage for Alabama equal to the federal minimum wage adjusted for any increase in the Consumer Price Index for Alabama as reported by the United States Department of Labor; to require the Director of Finance to notify the Alabama Department of Labor in writing between October 1 and October 15 each year of the percentage to be used for the cost-of-living adjustment for the next calendar year; and to require the Alabama Department of Labor to post any change in the state minimum wage on its website.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. The following words and phrases shall have the following meanings:

(1) EMPLOYEE. An individual employed by an employer.

(2) EMPLOYER. An individual, partnership, association, corporation, business trust, legal representative, or any organized group of persons, acting directly or indirectly in the interest of an employer in relation to an employee.

(3) WAGES. Compensation paid to an employee in the form of legal tender of the United States or checks or drafts on banks negotiable into cash on demand or upon acceptance at full value. The term does not include tips or gratuities of any kind.

Section 2. Each employer shall pay to each employee wages at a rate that is no less than the federal minimum wage, as revised pursuant to Section 6.

Section 3. Each employer subject to this act shall keep a summary of this act and any applicable wage orders and regulations posted in a conspicuous and accessible place in or about the premises or place of business of the employer.

Section 4. An employer who violates the minimum wage requirements of this act shall be liable to the employee for the amount of unpaid minimum wages plus interest. The court, in addition to any judgment awarded to an employee, shall require the defendant to pay court costs and reasonable attorney's fees incurred by the employee. An action to recover must be instituted within three years from the date the wages should have been paid.

Section 5. This act may not be construed to interfere with, impede, or in any way diminish the right of employees to bargain collectively through representatives of their own choosing in order to establish wages in excess of the applicable minimum wage provided for by this act.

Section 6. The minimum wage shall be increased by the same amount as the increase in the Consumer Price Index for Alabama as reported by the United States Department of Labor or any subsequent equivalent index. The Consumer Price Index data for the completed calendar year preceding the beginning month of a fiscal year shall determine the percentage in the increase of the minimum wage. The Director of Finance shall notify the Alabama Department of Labor in writing between October 1 and October 15 of each fiscal year of the percentage to be used for the cost-of-living adjustment for the next calendar year. The Alabama Department of Labor shall post any change in the minimum wage on its website.

Section 7. This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law.

Business and Commerce

Business and Labor

Employment

Minimum Wage

Civil Procedure

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