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SB171 • 2026

Minimum wage; established, small business exempted

Minimum wage; established, small business exempted

Labor Small Business
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Stewart
Last action
2026-01-15
Official status
Pending Committee Action in House of Origin
Effective date
Not listed

Plain English Breakdown

The official text states the bill was introduced and read for the first time in January 2026. The metadata mentions conflicting status labels ('Passed Legislature' vs 'Pending Committee Action'), so it is unclear if this law has actually been enacted into force.

SB171: State Minimum Wage and Small Business Exemption

This bill establishes a state minimum wage of $10.00 per hour starting January 1, 2027, but exempts businesses with 50 or fewer employees.

What This Bill Does

  • Establishes a state minimum wage of ten dollars ($10.00) per hour beginning January 1, 2027.
  • Requires employers to pay workers at least the new state rate unless they are exempted small businesses.
  • Exempts small businesses from paying this specific state minimum wage.
  • Defines 'small business' as any employer with 50 or fewer employees.

Who It Names or Affects

  • Employers in Alabama who have more than 50 employees
  • Employees working for employers with more than 50 workers

Terms To Know

Minimum wage
The lowest hourly pay rate an employer is allowed to give a worker under this state law.
Exempted
Not required to follow the new rule or law because they meet specific conditions, such as being a small business.

Limits and Unknowns

  • This bill does not change federal minimum wage laws.
  • The act becomes effective on October 1, 2026, but the new pay rate begins later on January 1, 2027.

Bill History

  1. 2026-01-15 Senate

    Pending Committee Action in House of Origin

  2. 2026-01-15 Senate

    Read for the first time and referred to the Senate Committee on Finance and Taxation General Fund

Official Summary Text

Minimum wage; established, small business exempted

Current Bill Text

Read the full stored bill text 
SB171 INTRODUCED
Page 0
SB171
L5IH9AA-1
By Senators Stewart, Hatcher, Smitherman, Figures, Coleman,
Coleman-Madison, Singleton, Beasley
RFD: Finance and Taxation General Fund
First Read: 15-Jan-26
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L5IH9AA-1 01/14/2026 GP (L)GP 2026-201
Page 1
First Read: 15-Jan-26
SYNOPSIS:
Under existing federal law, the minimum wage is
$7.25 per hour.
Existing state law does not establish a minimum
wage.
This bill would establish a state minimum wage
of $10.00 per hour.
This bill would also exempt small businesses
from the state minimum wage requirement.
A BILL
TO BE ENTITLED
AN ACT
Relating to employment; to establish a state minimum
wage; and to exempt certain small businesses.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) Beginning January 1, 2027, the state
minimum wage shall be ten dollars ($10.00) per hour.
(b) Except as provided in subsection (c), each employer
shall pay its employees at a rate not less than the state
minimum wage.
(c)(1) This section shall not apply to any small
business.
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SB171 INTRODUCED
Page 2
business.
(2) For the purposes of this section, the term "small
business" means any employer with 50 or less employees.
Section 2. This act shall become effective on October
1, 2026.
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