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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 source material does not provide specific details on enforcement mechanisms and penalties.

Setting a State Minimum Wage and Exempting Small Businesses

This bill sets a state minimum wage of $10.00 per hour starting January 1, 2027, but does not apply to small businesses with 50 or fewer employees.

What This Bill Does

  • Sets the state minimum wage at $10.00 per hour beginning in 1 January 2027.
  • Does not require small businesses with 50 or fewer workers to follow this new minimum wage rule.

Who It Names or Affects

  • Employees who work for employers covered by the state's new minimum wage law.
  • Employers with more than 50 employees must pay their employees at least $10.00 per hour starting in 2027.
  • Small businesses with 50 or fewer employees are not required to follow this new rule.

Terms To Know

Minimum wage
The lowest hourly rate that employers must pay their workers, set by law.
Small business
A company with 50 or fewer employees, as defined in the bill.

Limits and Unknowns

  • Does not specify what happens if a small business grows to have more than 50 employees.
  • The bill does not address how it will be enforced or what penalties might apply for non-compliance.

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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