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Alabama Legislature Blocks Minimum Wage Increase


A few weeks ago, I wrote an article about attempts by the Alabama legislature to block minimum wage hikes in cities and towns across the state.  (Alabama House of Representatives Votes to Block Minimum Wage Hike).  By way of background, Birmingham had passed a city ordinance that would have raised the city's minimum wage to $10.10/hour by 2017.

However, Republicans in the state legislature sought to prevent this minimum wage hike from taking effect and began work on legislation to block the measure.  The bill passed the House with a vote of 71 - 31 earlier this month.  This past Thursday, the Senate voted 23 - 11 to approve the bill and a few hours later, Republican Governor Robert Bentley signed the bill into law.

As a result, the ordinance passed by Birmingham will not take effect as originally planned.  In fact, under this bill, cities and towns within the state will be prevented from raising its minimum wage rates.  (Note, Alabama does not have a state minimum wage rate.  Instead, the federal minimum wage rate of $7.25/hour is used).

This is quite a change from other cities and states that have embraced minimum wage hikes in recent years.  Democrats in Alabama were quick to point out that this legislation would further prevent hourly workers from being able to provide for their families.  With that being said, Republicans pointed to the fact that raising the minimum wage rate (by allowing Birmingham's ordinance to take effect) would chill economic development in the state.  Until Democrats get the numbers on their side to pass legislation overcoming this new law, it looks like the minimum wage rate in the state is going to remain stagnant.


For additional information:   http://www.cbsnews.com/news/birmingham-raises-minimum-wage-alabama-legislature-strikes-it-down/

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