The minimum wage in Alabama is $7.25 per hour, the same as the federal minimum wage. Tipped employees must be paid at least $2.13 per hour, but employers must ensure wages and tips combined equal at least the minimum wage.
A guide to hourly labor laws in Alabama
No state minimum wage. Adheres to the federal minimum wage of $7.25 under the Fair Labor Standards Act (29 US Code § 206).
No state tipped minimum wage. Adheres to the federal minimum wage of $2.13, with wage and tips totaling at least minimum wage (29 US Code § 203) (DoL Table).
Hours exceeding 40 in a fixed week are overtime, paid at 1.5 times the regular rate (29 US Code § 207) (DoL).
No state or federal law requiring meal breaks. Federal law allows unpaid, non-working, bona-fide meal breaks over 30 minutes; exceptions may apply (29 C.F.R. § 785.19) (DoL).
No state or federal law requires rest breaks. Breaks lasting 5–20 minutes must be paid (29 C.F.R. § 785.18).
No state laws (Alabama DoL). Federally limited to those required by law, such as taxes. Third-party deductions benefitting the employer may not reduce wages below the applicable minimum (29 C.F.R. § 4.168) (29 US Code § 203).
By the next scheduled payday, regardless of termination or resignation (DoL).
No state/federal laws. Wages should be paid consistently, according to employment terms (DoL).
No state/federal law. Policies are determined by the employer or through collective bargaining agreements (DoL).
No state law. Employees may be eligible for up to 12 unpaid weeks in one year for a qualifying medical condition (FMLA).
Alabama prohibits children under 16 from working during school hours (Ala. Code § 25-8-37).
- School session: Three hours per day; 18 hours per week.
- Non-school session: Eight hours per day; 40 hours per week.
- Working hours: Only between 7 a.m. and 7 p.m., extended until 9 p.m. June 1 through Labor Day (29 C.F.R. § 570.35).
No state/federal laws (DoL).
What is the difference between gross wages and net wages?
It's important to remember that the Hourly Wage Index data above reflects gross wages, or the amount of money an employee earns before accounting for payroll deductions like taxes, benefits, or wage garnishments. Due to variability in tax rates across locations, slightly lower gross wages in a certain location might result in higher take home pay, or vice versa.
What is a good hourly wage?
It's important to remember that the Hourly Wage Index data above reflects gross wages, or the amount of money an employee earns before accounting for payroll deductions like taxes, benefits, or wage garnishments. Due to variability in tax rates across locations, slightly lower gross wages in a certain location might result in higher take home pay, or vice versa.
Offering competitive pay is one of my top priorities—what other resources do you have that might help?
It's important to remember that the Hourly Wage Index data above reflects gross wages, or the amount of money an employee earns before accounting for payroll deductions like taxes, benefits, or wage garnishments. Due to variability in tax rates across locations, slightly lower gross wages in a certain location might result in higher take home pay, or vice versa.
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