United States: 11th Circuit Revives Lawsuit Challenging Legality Of Alabama's Ban On Local Minimum Wage Ordinances

Last Updated: July 31 2018
Article by M. Tae Phillips

On July 25, 2018, the Eleventh Circuit Court of Appeals reversed a Birmingham federal judge's dismissal of a lawsuit challenging the February 2016 Alabama Uniform Minimum Wage and Right to Work Act (commonly known as "the Minimum Wage Act"). The Minimum Wage Act provided the Alabama state legislature with the authority to control the regulation of wages within the state of Alabama, including the establishment of a state minimum wage. The passage of the Minimum Wage Act occurred shortly after the City of Birmingham passed an ordinance providing for an increase in the minimum wage for workers in Birmingham (including employees of private employers who perform work within the Birmingham city limits).

The Eleventh Circuit's decision results in the revival of the lawsuit that was previously dismissed at the lower court level, but it does not have an immediate impact on the hourly minimum wage for employees in the city of Birmingham.


The current federal minimum wage is $7.25 per hour. While some states and cities across the country have increased the minimum wage beyond this threshold, Alabama is not one of those states.

In April 2015, the Birmingham City Council passed a resolution asking the Alabama state legislature to raise the minimum wage to $10 per hour across Alabama. After this request was denied, in August 2015, the Birmingham City Council adopted its own minimum wage ordinance, Ordinance No. 16-28, that increased the minimum wage for employees in the city of Birmingham to $8.50 per hour beginning in July 2016, and to $10.10 per hour in 2017.

Shortly after the approval of Ordinance 16-28, a state representative introduced a bill in the Alabama House of Representatives prohibiting municipalities—including the City of Birmingham—from implementing a local minimum wage. Eventually, a version of the bill was approved by the Alabama House of Representatives, and later it was approved by the Alabama Senate Committee on Governmental Affairs.

While these efforts were ongoing in the Alabama legislature, the Birmingham City Council accelerated the implementation of Ordinance 16-28. On February 23, 2016, former Birmingham mayor William Bell signed Ordinance 16-28 into law, which had been modified to provide an increase in the minimum wage for employees in the city of Birmingham to $10.10 per hour, effective immediately. The ordinance also called for adjustments to the minimum wage on an annual basis.

On February 25, 2016, the Minimum Wage Act was approved by the Alabama Senate. Former Alabama governor Robert Bentley signed the Minimum Wage Act into law that same day. The Minimum Wage Act provided the Alabama state legislature with the authority to control the regulation of wages and to establish a uniform minimum wage across the state of Alabama. Of course, the implementation of the Minimum Wage Act nullified the passage of Ordinance 16-28. The heightened minimum wage for the city of Birmingham was in place for only one day.

On April 28, 2016, African-American hourly workers from the city of Birmingham, along with the National Association for the Advancement of Colored People (NAACP) and other local interest groups, filed a federal lawsuit challenging the Minimum Wage Act and claiming racial discrimination under the Equal Protection Clause of the Fourteenth Amendment of the United States Constitution, among other claims. The lawsuit named the governor of Alabama, the attorney general for the State of Alabama, the State of Alabama, the City of Birmingham, and the mayor of Birmingham as defendants. On February 1, 2017, a Birmingham federal judge dismissed the lawsuit, holding that the Minimum Wage Act did not violate the Fourteenth Amendment and contained no racially discriminatory intent." The plaintiffs appealed the lower court's decision to the Eleventh Circuit Court of Appeals.

The Eleventh Circuit's Opinion

While the Eleventh Circuit upheld the lower court's opinion with respect to several defendants and some legal theories, it reversed the lower court's dismissal of the Fourteenth Amendment claims against the attorney general for the State of Alabama, stating that the plaintiffs' lawsuit "plausibly alleged a discriminatory motivation behind the Minimum Wage Act."

In issuing its opinion, the Eleventh Circuit stated that the city of Birmingham has Alabama's largest African-American population and has more total residents living in poverty than anywhere else in the state, and that the Birmingham City Council's makeup was primarily African-American. The Eleventh Circuit also noted that the Minimum Wage Act was introduced by a Caucasian state representative, primarily supported by Caucasian lawmakers, and uniformly opposed by African-American lawmakers. These factors, the Eleventh Circuit concluded, led to its decision that the plaintiffs plausibly stated a claim that the Minimum Wage Act was discriminatory towards African-Americans in violation of the Equal Protection Clause of the Fourteenth Amendment. The Eleventh Circuit went on to say, however, that it had no opinion as to whether the plaintiffs could ultimately prove that the law was enacted with a discriminatory motive, but that dismissal at the outset of litigation was inappropriate.

Key Takeaways for Employers

It is unknown at this point whether this matter will be appealed to the Supreme Court of the United States. For the time being, the hourly minimum wage for employees within the city of Birmingham remains at $7.25. However, employers that have workers within the city of Birmingham may want to continue to monitor this case and any legislative activity occurring as a result of this litigation. Eventually, the hourly minimum wage for employees within the city of Birmingham could rise pursuant to Ordinance 16-28, or the state legislature could take other efforts that increase the state minimum wage.

Ogletree Deakins will continue to monitor this issue and provide updates on future developments.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
Ogletree, Deakins, Nash, Smoak & Stewart
Sheppard Mullin Richter & Hampton
Ogletree, Deakins, Nash, Smoak & Stewart
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Ogletree, Deakins, Nash, Smoak & Stewart
Sheppard Mullin Richter & Hampton
Ogletree, Deakins, Nash, Smoak & Stewart
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions