01No state minimum wage law; preemption nullified Birmingham's $10.10 ordinance
Alabama has no state minimum wage law. Federal Fair Labor Standards Act (FLSA) controls — $7.25/hr unchanged since July 24, 2009. The state has not enacted its own minimum wage statute, despite multiple legislative proposals. Bills proposing rates from $9.00 to $15.00 with various implementation schedules have been introduced; none have advanced beyond committee.
2016 preemption sequence: Birmingham City Council passed an ordinance in February 2016 raising the city's minimum wage to $10.10 effective July 1, 2016. The Alabama Legislature responded by passing Ala. Code § 25-7-41 (the Alabama Uniform Minimum Wage and Right-to-Work Act) signed by Governor Bentley in February 2016, preempting all local minimum wage ordinances and nullifying Birmingham's not-yet-effective ordinance.
Tipped workers earn $2.13/hr cash + up to $5.12 tip credit ($7.25 - $2.13), with total compensation including tips required to reach $7.25. Workers earning more than $30/month in tips qualify as tipped employees (federal threshold). Alabama follows federal tip credit framework with no state-specific 80/20 rule.
Federal $684/week ($35,568/year) exempt threshold applies. Alabama does not set a higher state-specific exempt threshold. The DOL's attempted 2024 increase to $1,128/week was vacated by the Eastern District of Texas in November 2024, leaving the federal $684 in place. AL tracks federal exempt classifications and duties tests under FLSA.
Coverage exemptions: AL follows federal FLSA exemptions (executive, administrative, professional, computer, outside sales, highly compensated employee). No state-specific carve-outs because there is no state minimum wage statute to exempt from. Workers under 20 may be paid the federal training wage of $4.25/hr for the first 90 consecutive days of employment. Full-time students may be paid 85% of minimum wage ($6.16/hr) for up to 20 hours/week at certain employers.
Read the full Alabama federal floor + 2016 preemption (birmingham) guide →
02Alabama has no state overtime statute — pure FLSA reliance
Alabama has no state overtime statute. Federal FLSA (29 USC § 207) controls: 1.5× regular rate for hours worked over 40 in a workweek for non-exempt workers. Alabama tracks federal exemptions, federal regular rate calculation, and federal SOL framework. State law adds no overtime requirements beyond federal.
Federal regular rate calculation under 29 CFR Part 778 controls. All compensation components must be included: hourly wages, nondiscretionary bonuses, shift differentials, commissions, certain piecework. Failing to include nondiscretionary bonuses in regular rate is a common employer mistake — particularly impactful where bonuses materially exceed hourly base.
FLSA exemptions apply: executive, administrative, professional (with $684/week salary basis + duties test); computer professionals (with $684/week salary or $27.63/hour hourly basis); outside sales; highly compensated employees ($107,432/year, primarily performing exempt duties). Alabama follows federal exemption analysis without state-specific modifications.
FLSA enforcement track: workers may pursue claims through US DOL Wage and Hour Division (administrative track) or private civil action in federal court. Federal SOL: 2 years for ordinary violations, 3 years for willful. Recovery: unpaid overtime + equal liquidated damages + attorney fees + costs. Class certification under Rule 23 or collective action under FLSA § 216(b) typical for pattern violations.
Specific FLSA carve-outs relevant to AL sectors: agricultural workers (limited OT coverage — Alabama has significant agricultural workforce); seasonal amusement workers (full OT exemption if establishment operates ≤7 months/year or 6-month receipts test); specific transportation workers (motor carrier exemption under 13(b)(1)); specific commission-paid workers (7(i) exemption for retail and service establishments).
Read the full Alabama federal flsa overtime (no state ot) guide →
03No state pay frequency, wage statement, or final pay statute
Alabama has no state Wage Payment Act. Unlike most states (which have wage payment statutes covering pay frequency, wage statements, deduction rules, and final paycheck timing), Alabama relies entirely on federal FLSA recordkeeping requirements and employment contract terms.
Pay frequency: no state mandate. Employers may elect any frequency — weekly, bi-weekly, semi-monthly, monthly. The chosen frequency must be regular and consistent with employment terms. Workers paid weekly cannot be shifted to monthly without proper notice and a transition period (per common law contract principles, not statute).
Wage statement: no state requirement. Federal FLSA recordkeeping under 29 CFR § 516 requires employers to maintain payroll records for 3 years and basic time records for 2 years. Itemized wage statements to workers are NOT required by federal law (some states require them; Alabama does not).
Final paycheck: no state statute. Alabama Department of Labor recommends payment by the next regular payday following separation. No statutory penalty for late payment beyond what FLSA may provide for any underlying minimum wage or OT violations. To avoid disputes, employers should include final paycheck timelines in their employment policies.
Wage deductions: no state statute. Federal FLSA Fact Sheet #16 controls: deductions cannot reduce wages below the federal minimum and cannot be taken from overtime premium. Garnishment limits under federal Consumer Credit Protection Act (15 USC § 1673) — generally 25% of disposable earnings or 30 times the federal minimum hourly wage, whichever is less. Workers facing wage payment disputes typically pursue federal FLSA claims for any underlying minimum wage or OT violations rather than state-level wage payment claims (because no state-level claim exists).
Read the full Alabama no state wage payment act (federal default) guide →
04Ala. Code § 25-8-32 — Class I (14-15) and Class II (16-17) certificates required
Alabama's child labor framework under Ala. Code §§ 25-8-1 et seq. (Alabama Child Labor Law) regulates the employment of workers under 18. The Alabama Department of Labor's Child Labor Division administers and enforces the framework, including issuing required certificates and conducting compliance investigations.
Child Labor Certificates: employers must obtain a Class I Child Labor Certificate for each location employing minors ages 14-15, and a Class II Child Labor Certificate for each location employing minors ages 16-17. The certificates cost $15 per business location and must be renewed periodically. Certificates are obtained through the Alabama Department of Labor's online portal or paper application.
Recordkeeping requirements (Ala. Code § 25-8-58): employers must keep on premises for at least 3 years a separate file for each employee under age 19 that includes: name, home address, telephone number, date of birth, date of hire, proof of age, school of attendance, specified time records (start times, end times, total daily hours worked, break times). Employers must maintain a separate list of all employees ages 14 and 15.
Hour restrictions for 14-15 year-olds (Ala. Code § 25-8-39): may not work more than 3 hours on a school day; 18 hours during a school week; 8 hours on a non-school day; 40 hours during a non-school week. Working hours: between 7 AM and 7 PM during the school year, extended to 9 PM between June 1 and Labor Day. 30-minute meal/rest break required for 14-15 year-olds working 5+ consecutive hours.
Hour restrictions for 16-17 year-olds (Ala. Code § 25-8-40): generally fewer hour restrictions than 14-15 year-olds, but cannot work in hazardous occupations under federal FLSA Hazardous Occupations Orders (HO-1 through HO-17, covering manufacturing/storing explosives, motor vehicle driving, mining, logging, power-driven hoisting/operating equipment, certain demolition work, etc.). Multi-state operators in Alabama with under-18 hires should configure: (1) per-location Child Labor Certificate tracking; (2) under-18 worker file with required documentation; (3) hour and time-of-day scheduling validation; (4) hazardous occupation prohibition checks.
Read the full Alabama child labor certificate framework guide →
05Federal FMLA only; right-to-work state framework
Alabama has no statewide paid sick leave law. Workers in AL generally rely on: (1) federal FMLA (12 weeks unpaid, job-protected at 50+ employee employers); (2) any voluntary employer-provided PSL or PTO; (3) narrow state-specific unpaid leaves discussed below.
Federal FMLA framework: covers AL employers with 50+ employees within 75 miles. Workers eligible after 12 months of employment and 1,250 hours worked in the preceding 12 months. Up to 12 weeks of unpaid, job-protected leave per 12-month period for: birth/bonding with new child; care for spouse, child, or parent with serious health condition; worker's own serious health condition; qualifying military exigency. Up to 26 weeks for caring for covered service member with serious injury or illness.
Alabama-specific unpaid (and limited paid) leaves: Jury Duty Leave (Ala. Code § 12-16-8): full-time workers must receive their usual compensation while serving on jury duty (paid leave required by Alabama statute, distinguishing AL from most states which only require unpaid leave). Voting Leave (Ala. Code § 17-1-5): workers entitled to up to 1 hour of unpaid time off to vote if reasonable time is not available outside work hours. Military Leave: federal USERRA covers private sector; state-specific protections for Alabama National Guard members.
Right-to-work state framework: Ala. Const. Art. I, § 36 and Ala. Code §§ 25-7-30 et seq. (Right-to-Work Law). Workers cannot be required to join a union or pay union dues as a condition of employment. Multi-state operators expanding to AL from union-active states (NY, NJ, MI, IL) face different organizing dynamics; collective bargaining agreements may not include compulsory membership clauses.
PFML legislation has not advanced in the Alabama Legislature. Given current political alignment and right-to-work framework, PFML enactment in AL is unlikely in the 2026-2027 timeframe. Operators should not anticipate state PFML in near-term planning. Voluntary employer-provided PFML through private insurance or self-funded programs remains the only structured paid leave option for AL employers.
Read the full Alabama no state psl, no state pfml, no state break mandate guide →
06No state employment discrimination statute; AL Age and Disability are exceptions
Alabama has no comprehensive state employment discrimination statute. Anti-discrimination protections rely primarily on federal law applied through federal coverage thresholds.
Federal Title VII (42 USC §§ 2000e et seq.): 15+ employee employers. Prohibits discrimination based on race, color, religion, sex, and national origin. Federal Bostock v. Clayton County (2020) extended 'sex' protection to cover sexual orientation and gender identity, applying nationwide. Workers may file with EEOC within 180 days (extended to 300 days where state agency provides parallel protection — Alabama's narrow exceptions do extend the SOL for ADEA matters).
Federal ADA (42 USC §§ 12101 et seq.): 15+ employee employers. Prohibits disability discrimination and requires reasonable accommodations for qualified individuals with disabilities. Coverage extends to: physical or mental impairments substantially limiting major life activities; record of impairment; perceived as having impairment.
Federal ADEA (29 USC §§ 621 et seq.): 20+ employee employers. Prohibits age discrimination against workers 40+. Alabama Age Discrimination in Employment Act (Ala. Code § 25-1-20 et seq.): mirrors federal ADEA framework, providing parallel state filing track. Coverage threshold matches federal (20+ employees). Damages similar to federal.
Federal Pregnant Workers Fairness Act (PWFA, effective June 27, 2023): 15+ employee employers. Requires reasonable accommodations for pregnancy, childbirth, and related medical conditions. EEOC enforcement. Alabama has no separate state pregnancy accommodation statute — federal PWFA provides the entire framework. Federal GINA (42 USC §§ 2000ff et seq.): 15+ employee employers. Prohibits genetic information discrimination. Alabama's narrow state framework does not extend protections beyond federal coverage. Workers seeking employment discrimination remedies in Alabama typically file federal EEOC charges and pursue federal court litigation; the state-level enforcement track is much narrower than in states with comprehensive state anti-discrimination frameworks (NY, CA, MA, NJ, MN).
Read the full Alabama federal anti-discrimination primary (title vii) guide →
07Multi-factor common law test; AL DOL coordinates UI/WC enforcement
Alabama applies a multi-factor common law test for IC classification, structurally similar to the IRS framework under Rev. Rul. 87-41. Factors evaluated: behavioral control (instructions on how work is performed, training provided); financial control (method of payment, who provides tools and equipment, opportunity for profit or loss, unreimbursed business expenses); relationship type (written contracts, employee benefits, permanence of relationship, regular business of the employer).
The multi-factor test is more permissive than ABC test states (NJ, MA, CA, MD, CT, NV). Workers can be classified as IC in Alabama even when the work is part of the employer's regular business — provided control is properly limited and other factors support IC classification. Right of control is typically weighted heavily but not exclusively.
Misclassification consequences: unemployment insurance back-contributions plus penalties (Alabama Department of Labor); workers' compensation premium back-payment plus exposure for any injuries during misclassified period (Alabama Workers' Compensation Division); federal IRS Form SS-8 reclassification with Section 3509 employment tax penalties; potential wage exposure under federal FLSA if workers should have received minimum wage and OT.
Construction industry concentration: Alabama has been a moderate enforcement jurisdiction for construction misclassification, particularly in residential and commercial construction. The 'sham' subcontractor pattern (general contractor pushing work through pass-through 'subcontractor' shells) is a target. Construction-specific misclassification bills have been introduced periodically; no Alabama equivalent of MD's Workplace Fraud Act or VA's Workplace Fraud framework has been enacted.
Workers' compensation: Alabama Workers' Compensation Act (Ala. Code §§ 25-5-1 et seq.) requires employers with 5+ employees to maintain workers' compensation insurance (standard threshold). Construction employers may have lower thresholds depending on the project type. Employee vs IC classification is consequential — properly classified IC workers are not covered by employer's WC insurance and bear their own injury risk through individual policies or self-insurance.
Read the full Alabama ic classification (multi-factor test) guide →
08No state mini-WARN; federal WARN Act controls
Alabama has no state mini-WARN Act. Federal WARN Act (29 USC §§ 2101 et seq.) controls notice obligations for plant closings and mass layoffs.
Federal WARN coverage: employers with 100+ full-time employees (or 100+ employees including part-time who in aggregate work 4,000+ hours/week, exclusive of overtime). Coverage threshold is significantly higher than state mini-WARN frameworks (WI 50+, NJ 50+, CA 75+, NY 50+, IL 75+).
Triggering events: (1) Plant closing: permanent or temporary shutdown of a single site of employment (or one or more facilities or operating units within a single site) resulting in employment loss for 50+ workers in any 30-day period. (2) Mass layoff: reduction in force at a single site of employment resulting in employment loss for 500+ workers, OR for 50-499 workers if they constitute at least 33% of the workforce.
60-day notice requirement: covered employers must provide 60 calendar days' written notice to: (1) affected workers or their representatives; (2) state dislocated worker unit (Alabama Department of Labor's Rapid Response Team); (3) chief elected official of the local government where the action will occur. Notice must include specific information about the closing/layoff including expected dates, types of jobs affected, bumping rights, and contact persons.
Federal WARN exceptions: faltering company exception (employer actively seeking capital that would have permitted avoiding/postponing the closing); unforeseeable business circumstances exception (sudden, dramatic, and unexpected events outside employer's control); natural disaster exception. Each exception requires specific documentation and notice as soon as practicable. Penalties for violation: workers may recover back pay and benefits for each day of violation up to 60 days; civil penalty up to $500/day to local government for failure to notify. Alabama's lack of state mini-WARN means employers operating below 100 employees have no state-level closing/layoff notice obligations. Multi-state operators with AL workforces should focus on federal WARN compliance and any state-specific requirements in other states with covered workforces.
Read the full Alabama alabama mini-warn (federal-only) guide →