HB 697 Summary

• Establishes a minimum wage of $9.50 per hour for workers on state, county, or municipal service/labor contracts exceeding $20,000 if health insurance benefits of at least $1.25 per hour are provided, or $10.75 per hour if health insurance is not provided.

• Requires annual review by the Alabama Department of Labor in February to adjust minimum wages based on changes to the federal poverty level standard or Consumer Price Index for Urban Consumers, with adjustments capped at 3 percent.

• Applies only to contracts executed after the effective date and does not retroactively apply to existing contracts.

• Requires the higher wage to apply if a contract is already subject to prevailing wage requirements.

• Becomes effective on the first day of the third month following passage and approval by the Governor; requires a two-thirds legislative vote to become effective for local entities unless locally approved or the Legislature appropriates funds.