HB70 Summary

• Proposes a constitutional amendment to establish Alabama's first state minimum wage at $10.10 per hour, implemented in three increments: $8.20 on January 1, 2017; $9.15 on July 1, 2017; and $10.10 on January 1, 2018.

• Sets tipped employees' wages at a minimum of 30 percent of the federal or state minimum wage rate, whichever is greater, provided they receive at least 70 percent of the minimum wage in gratuities.

• Beginning January 1, 2020, and every three years thereafter, automatically adjusts the minimum wage based on the Consumer Price Index for Alabama as reported by the U.S. Department of Labor.

• Requires the State Finance Director to notify the Alabama Department of Labor between October 1 and October 15 each fiscal year of the cost-of-living adjustment percentage for the next three calendar years, with the Department of Labor posting changes on its website as notice to employers.

• Establishes employer liability for unpaid minimum wages plus interest, court costs, and reasonable attorney's fees, with a three-year statute of limitations; prohibits displacing employees to hire at lower authorized wages.