At a glance
- Minimum wage: $7.25 an hour. No state minimum wage law, so the federal $7.25 applies.
- Tipped cash wage: $2.13.
- Overtime: after 40 hours in a workweek.
- Final paycheck if fired: no state final pay law.
- Paid sick leave: No. Paid family leave program: No.
What Alabama employers need to know
Alabama is one of five states with no minimum wage law of its own, so federal rules do most of the work here. That sounds simple, and for the most part it is. The places Alabama employers slip are the few state rules that do exist, especially the seven-day new hire reporting deadline, which is far shorter than the federal 20 days, and the state's child labor law, which requires an eligibility certificate before most minors start work.
Alabama minimum wage
| Minimum wage | $7.25 No state minimum wage law, so the federal $7.25 applies. |
|---|---|
| Tipped cash wage | $2.13 |
| Next change | None scheduled |
Pay the highest rate that applies where the employee works: federal, state, or local. For comparison, neighboring states pay Mississippi ($7.25), Tennessee ($7.25), Georgia ($7.25), Florida ($15.00). See every state side by side in our minimum wage by state table, and convert between hourly and annual pay with the salary to hourly calculator.
Alabama overtime rules
The federal FLSA rule applies: overtime at 1.5 times the regular rate after 40 hours in a workweek. There is no daily overtime rule.
Exempt salary test: the federal minimum of $684 a week ($35,568 a year) applies. Duties tests apply too, so job titles alone don't make someone exempt.
Work out overtime owed with our overtime calculator, compare states in overtime laws by state, and check classification with our guide to exempt vs non-exempt employees.
Alabama meal and rest break laws
Meal breaks: No state meal break law for adult employees. Federal law doesn't require meal breaks either, but if you give one of 30 minutes or more and the employee is fully relieved of duty, it can be unpaid.
Rest breaks: No state rest break law for adults. Under federal law, short breaks of 5 to 20 minutes that you choose to give must be paid.
Many states have stricter break rules for minors. Compare adult rules nationwide in break laws by state, and total up shifts with the time card calculator.
Alabama final paycheck law
| If you fire or lay off the employee | No state final pay law. Pay by the next regular payday as a practical standard. |
|---|---|
| If the employee quits | No state final pay law. Pay by the next regular payday. |
| Unused vacation or PTO | Not required by state law. Follow your written policy or contract, and apply it consistently. |
Build the deadline into your offboarding checklist. Our offboarding guide covers the full process, the PTO payout calculator works out the amount, and the final paycheck laws by state table compares every state.
Alabama paid sick leave and family leave
Paid sick leave: No statewide paid sick leave law. Check city and county rules, and federal contractor rules (Executive Order 13706) if they apply.
Paid family and medical leave: No state paid family leave program. The federal FMLA gives eligible employees of employers with 50 or more employees up to 12 weeks of unpaid, job-protected leave.
Federal FMLA: employers with 50 or more employees within 75 miles must also give eligible employees up to 12 weeks of unpaid, job-protected leave. Read our FMLA guide, and compare states in paid leave laws by state.
Hiring, pay transparency, and payroll setup
Pay transparency: No statewide pay transparency law requiring pay ranges in job postings.
New hire reporting: Report each new hire within 7 days, shorter than the federal 20-day deadline.
State income tax withholding: Yes. Register with the state tax agency before the first payroll.
Our pay transparency laws guide explains posting rules in more depth, and our job description templates include pay data for 50 common roles.
What trips up Alabama employers
- Report new hires within 7 days, one of the shortest deadlines in the country.
- Alabama has no final pay law, so your own written policy sets expectations. Put it in the handbook.
- Birmingham and other cities can't set their own minimum wage. A 2016 state law blocks local wage ordinances.
Sources and the agency to contact
- Alabama Department of Labor (state labor agency)
- US Department of Labor: state minimum wage laws
- US Department of Labor: minimum wages for tipped employees by state
- US Department of Labor: state meal period requirements
General information for US employers, not legal advice. Laws change and have exceptions by industry, employer size, and city. Confirm current rules with the state agency or employment counsel before you rely on them.
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<a href="https://www.hrtally.com/state-labor-laws/alabama/">Alabama labor laws for employers (2026)</a> (source: HRTally)
Suggested citation: HRTally Research Team. "Alabama labor laws for employers (2026)." HRTally, updated October 20, 2026. https://www.hrtally.com/state-labor-laws/alabama/
Frequently asked questions
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Written by the HRTally Research Team
Our guides are written and reviewed by people with hands-on US HR, payroll, and HR technology experience. Legal and tax facts are checked against primary sources, such as the Department of Labor, IRS, EEOC, and USCIS, and linked at the end of each guide. Vendors never review or pay for our editorial content.