Yes, small businesses in Alabama must pay at least $7.25 per hour, as mandated by the federal Fair Labor Standards Act.
Alabama Labor Laws
Alabama does not have a state-specific minimum wage law, so employers must adhere to the federal minimum wage of $7.25 per hour.
Alabama Labor Law Posters
Simplify labor law compliance and make workplace policies visible with J. J. Keller state and federal labor law posters.
History of Alabama Labor Laws
While Alabama lacks its own minimum wage and overtime laws, it has a notable history of child labor legislation. In 1887, the state enacted its first law aimed at protecting child workers.
Municipality Minimum Wage Laws
In 2016, the Alabama Uniform Minimum Wage and Right-to-Work Act was enacted, preventing local governments from mandating a local minimum wage. This law was a reaction to an ordinance passed by the Birmingham City Council in August 2015, which aimed to incrementally raise the minimum wage within Birmingham to $10.10 per hour from the federal minimum of $7.25 per hour. However, this increase was halted by the Alabama legislature’s preemption law.
Alabama Minimum Wage Exemptions
Employers must adhere to federal guidelines regarding exemptions from minimum wage requirements under the Fair Labor Standards Act. These exemptions include:
- Executive, administrative, and professional employees outside sales employees and those in specific computer-related roles
- Employees of certain seasonal amusement or recreational establishments
- Certain farm workers
- Casual babysitters and companions for the elderly or infirm
Alabama Posting Requirements
Required posters:
- Child Labor Law
- Unemployment Insurance
- Workers' Compensation
Tipped Wage in Alabama
In Alabama, employers are permitted to pay the federal tipped wage rate of $2.13 per hour. However, if an employee’s combined hourly rate (including tips) does not reach at least $7.25, the employer is required to make up the difference.
Overtime Wage in Alabama
Employees in Alabama who are exempt from the overtime requirements of the Fair Labor Standards Act are not entitled to overtime pay. These exempt workers include:
- Executive, administrative, and professional employees, outside sales employees and those in specific computer-related roles
- Employees of certain seasonal amusement or recreational establishments
- Certain farm workers
- Casual babysitters and companions for the elderly or infirm
- Certain commissioned employees of retail establishments, auto and other sales workers, and specific parts clerks and mechanics
- Taxi drivers and other employees in the transportation industry
- Announcers, news editors, and chief engineers of certain non-metropolitan broadcasting systems
- Domestic service workers living in the employer’s residence
- Employees of motion picture theaters
- Farm workers
Child Labor Laws in Alabama
For 14- and 15-year-olds during school months:
- No work during school hours (8 a.m. to 3 p.m.)
- No work between 7 p.m. and 7 a.m., any day of the week
- No more than 3 hours per day on school days
- No more than 8 hours per day on non-school days
- No more than 18 hours per week
- No more than 6 days per week
For 14- and 15-year-olds during non-school months:
- No work between 7 p.m. and 7 a.m., any day of the week
- No more than 8 hours per day
- No more than 40 hours per week
- No more than 6 days per week
For 16-, 17-, and 18-year-olds during school months:
- No work after 10 p.m. or before 5 a.m. on school nights if enrolled in public or private school
For 16-year-olds and older during non-school months:
- No hour restrictions
Note: The Alabama Child Labor Law applies even to children working in their parents’ business.
Employer Recordkeeping Requirements in Alabama
Under the federal Fair Labor Standards Act, Alabama employers must retain the following records for at least three years:
- Employee’s full name and Social Security number
- Address, including zip code
- Birth date, if under 19
- Sex and occupation
- Time and day of the week when the employee’s workweek begins
- Hours worked each day and total hours worked each workweek
- Basis on which the employee’s wages are paid
- Regular hourly pay rate
- Total daily or weekly straight-time earnings
- Total overtime earnings for the workweek
- All additions to or deductions from the employee’s wages
- Total wages paid each pay period
- Date of payment and the pay period covered by the payment
Additionally, Alabama law requires employers to maintain the following records for employees aged 18 or younger:
- The Alabama Department of Labor’s Employee Information Form
- Proof of age
- Time records showing the number of hours worked each day, including start and end times, and break times
For 14- and 15-year-old minors, employers must also keep the Eligibility to Work form.
Alabama Labor Law Questions & Answers
Employers should adhere to their company policies regarding the payment of unused, accrued vacation time upon termination of employment.
During the school year, 14- and 15-year-olds can work up to 3 hours per day on school days and 8 hours per day on non-school days, with a maximum of 18 hours per week and no more than 6 days per week. When school is not in session, they can work up to 8 hours per day, 40 hours per week, and no more than 6 days per week.
Employers can require overtime for employees, except for certain minors. According to the federal Fair Labor Standards Act, employees who work more than 40 hours in a workweek must be paid time-and-a-half their regular rate for the extra hours.
Minors aged 14 or 15 must be given a 30-minute break if they work more than five continuous hours.
Alabama Labor Law Posters
Simplify labor law compliance and make workplace policies visible with J. J. Keller state and federal labor law posters.