Alabama cities could raise their local minimum wage under proposed law

A bill has been filed in the Alabama House to repeal the Alabama Uniform Minimum Wage and Right-to-Work Act from 2016.

Rep. Neil Rafferty, D-Birmingham, introduced HB291 last week. This bill would allow municipalities to establish their own minimum wages, which would be higher than the federal minimum wage of $7.25 an hour. Alabama is one of only a handful of states that has not declared a minimum wage at the state level.

Before the Alabama Uniform Minimum Wage and Right-to-Work Act, the state code was ambiguous about whether a municipality could raise wages or provide additional worker benefits at the city level. 

The code was changed to read as “A county, municipality, or any other political subdivision of this state shall not enact or administer any ordinance, policy, rule, or other mandate requiring an employer to provide any employee, class of employees, or independent contractor with any employment benefit, including, but not limited to, paid or unpaid leave, vacation, wage, or work schedule, that is not required by state or federal law.”

This legislation was introduced in response to the Birmingham City Council’s vote to raise the minimum wage to $10.10 an hour in 2015.

“These economic issues, such as inflation and the cost of goods and services, are affecting the bottom line for everybody and families across the board. If a locality thinks that this would be something that would help their citizens out, then why not let them do it? Why not let them have the option to do it,” said Rafferty. 

Rafferty explained that city-level officials have their finger on the pulse of the city’s economic state and could alter or adjust any passed ordinances that have negative ramifications for the city.

“We know that this bill might be something that requires a longer conversation, and I just think it’s really important to get the conversation started, let the community know what’s going on,” said Rafferty.

HB291 is currently pending in the House Commerce and Small Business Committee. The bill, if passed, would take effect Oct. 1, 2025.