HUNTSVILLE, Ala. (WAFF) - Alabama could be on the verge of a major shift in worker pay.
For over 15 years, the state has had no minimum wage requirement, leaving workers at the federal rate of $7.25 an hour.
However, Senate Bill 171 aims to change that by establishing a state-mandated minimum wage of $10 per hour.
Alabama Senator Robert Stewart, who is sponsoring the bill, acknowledges that $10 an hour isn’t a living wage, but he argues it’s a necessary step in the right direction.
“This bill, it does not create a livable wage, but it does eliminate starvation wages,” Stewart said.
Prices for everyday goods have skyrocketed more than 23 percent since 2020 alone, according to the National Employment Law Project.
Yet minimum wage has remained frozen since 2009.
Stewart argues that low wages don’t just hurt workers but they burden taxpayers.
He said when workers earn poverty wages, they often rely on government assistance to survive.
“If we have somebody working at Walmart or a fast food chain making $8 an hour, the state is going to pick up the rest of that on SNAP, Medicaid and housing assistance,” Stewart said. “Alabama taxpayers should not be forced to subsidize billion dollar companies that refuse to pay a livable wage.”
The bill includes protections for small businesses.
Companies with 50 or fewer employees would be excluded from the requirement, allowing them to grow before facing the mandate.
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