On Thursday, February 25, 2016, Governor Robert Bentley signed a bill that immediately blocks Alabama cities from setting their own minimum wage rates. The bill was passed by the Alabama Senate earlier in the day by a 23-11 vote. The bill, titled the Uniform Minimum Wage and Right-to-Work Act, was first introduced last week by Representative David Faulkner, R-Mountain Brook, and passed in the House by a 71-31 vote.
The bill's passage voids the ordinance passed by the Birmingham City Council on February 23, 2016, that had raised minimum wage for jobs within Birmingham city limits to $10.10 per hour. The Birmingham city ordinance, which was the first local minimum wage ordinance passed by an Alabama city, had not yet become effective.
Whether legal challenges to the Alabama bill will be made is unclear. Burr & Forman will continue to monitor the issue and update you of future developments.