Alabama Governor Robert Bentley signed legislation that banned cities and towns from setting their own minimum wage.
The bill came just as the city of Birmingham was set to increase its minimum wage to $10.10.
"It certainly is unfortunate, if it stands up, it is a loss for those who deserve to earn a livable wage in the city of Birmingham, and, for that matter, the state of Alabama," Birmingham City Council leader Jonathan Austin said, reported Fox News. "But obviously the state disagrees."
Bentley signed the bill less than an hour after it was passed.
The Obama Administration has been in favor of efforts to raise the minimum wage locally throughout the country.
"We believe that the federal floor should be $12 by 2020 [and that] would be just enough to get a family just above the poverty line," U.S. Labor Secretary Tom Perez said, according to The Guardian. "They are not going to be rich, but they will be just above the poverty line.
"Some states and local governments are going beyond that and that’s just fine ... Seattle is in a better position to know how much above that federal floor they should go. That’s been our position and continues to be our position.”