SB295 Summary

• Establishes Alabama's first state minimum wage of $12 per hour for hourly employees, effective 60 days after passage.

• Sets tipped employee wages at a minimum of 30 percent of the federal or state minimum wage (whichever is greater), provided they receive at least 70 percent of the current minimum wage in gratuities.

• Requires minimum wage increases every three years beginning January 1, 2020, based on the Consumer Price Index for Alabama reported by the U.S. Department of Labor.

• Assigns enforcement authority to the Commissioner of the Alabama Department of Labor with power to investigate, inspect payroll records, and subpoena witnesses.

• Imposes civil penalties of $500 to $1,000 for willful violations (with warning for first unintentional violation) and allows employees to recover unpaid wages plus an equal amount in damages plus court costs and attorney's fees in civil actions.