Alabama has no state minimum wage, defaulting to the federal $7.25 FLSA floor.
Alabama is one of five states that does not have its own state-specific minimum wage law. Employers must therefore comply with the federal Fair Labor Standards Act (FLSA) minimum wage, currently set at $7.25 per hour. This also means there is no state-level minimum wage for tipped employees, youth, or training wages, all of which default to federal guidelines.
Federal $7.25 Floor (No State Min Wage)
Alabama employers must adhere to the federal minimum wage of $7.25 per hour, as the state does not have its own minimum wage law. Local municipalities are preempted from establishing their own wage ordinances.
What those rules do as an Alabama shift is created.
When Teambridge processes a shift for an employee in Alabama, the system automatically checks the applicable wage thresholds and ensures compliance with the federal FLSA minimum wage. It also validates against the state's preemption laws for local ordinances.
Federal Minimum Wage Enforcement
For every hour worked, Teambridge verifies that the employee's effective hourly rate meets or exceeds the federal minimum wage of $7.25. If a calculated rate falls below this, it flags the shift for review and potential adjustment.
Local Ordinance Block
Teambridge's geofencing capabilities identify if a shift occurs in a locality that might attempt to enact its own minimum wage. Given Alabama's preemption law, the system confirms that no local wage ordinance is applied, overriding any potential local rate with the federal standard.
Tipped Wage Compliance (Federal)
For tipped employees, Teambridge ensures compliance with federal FLSA tipped wage rules ($2.13 cash wage + tips reaching $7.25/hr). Since Alabama has no state-specific rules, the system defaults to federal guidelines for calculating and verifying tipped wages.
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Alabama employers must comply with the federal minimum wage of $7.25/hour.
Alabama law does not establish a state minimum wage. Consequently, employers in Alabama are subject to the federal minimum wage provisions of the Fair Labor Standards Act (FLSA). Additionally, Alabama state law explicitly prohibits local governments from enacting their own minimum wage ordinances.
Ala. Code § 25-7-41 (2016): "A local governmental entity may not establish or mandate a minimum wage rate that is not provided for by federal or state law."
Federal FLSA Minimum Wage Application
Under the FLSA, non-exempt employees must be paid at least the federal minimum wage for all hours worked. This applies to most private and public employment. Alabama does not have any provisions that would create a higher state minimum wage or different rules for specific industries or employee types (e.g., youth, training wages), meaning the federal standard is uniformly applied across the state.
Preemption of Local Wage Ordinances
In 2016, Alabama enacted Ala. Code § 25-7-41, a preemption statute that explicitly prohibits any local governmental entity (such as a city or county) from establishing or mandating a minimum wage rate different from federal or state law. This law was passed in response to an attempt by the City of Birmingham to implement its own minimum wage ordinance. As a result, no city or county in Alabama can legally set a minimum wage higher than the federal standard.
Teambridge ensures Alabama's minimum wage compliance without manual oversight.
Teambridge's compliance engine is pre-configured with the federal FLSA minimum wage rate and Alabama's preemption laws. This means every shift, every payroll calculation, and every employee payment adheres to the correct wage floor automatically.
Automatic Federal Minimum Wage Check
Teambridge automatically applies the federal $7.25/hour minimum wage to all non-exempt employees in Alabama. If a pay period's calculated effective hourly rate falls below this threshold for any reason, the system flags it for review and suggests an automatic adjustment to ensure compliance.
Blocking Non-Compliant Local Ordinances
Our platform includes geofencing and legislative awareness that recognizes Alabama's statewide preemption. Even if a shift is recorded in a city that might attempt a local wage ordinance, Teambridge's system ensures that only the federal minimum wage is applied, preventing inadvertent non-compliance with state preemption law.
Federal Tipped Wage Compliance
For employees who receive tips, Teambridge applies the federal FLSA rules for tipped wages. It ensures that the combination of direct cash wage ($2.13/hour) and tips received meets or exceeds the federal minimum wage of $7.25/hour, flagging any shortfalls for employer action.
People also ask.
Does Alabama have a state minimum wage?
No, Alabama does not have its own state minimum wage law. Employers in Alabama are required to comply with the federal minimum wage under the Fair Labor Standards Act (FLSA), which is currently $7.25 per hour.
Can cities in Alabama set their own minimum wage?
No, Alabama state law (Ala. Code § 25-7-41) explicitly preempts local governmental entities from establishing or mandating a minimum wage rate that is not already provided for by federal or state law. This means cities and counties cannot set a minimum wage higher than the federal standard.
What is the minimum wage for tipped employees in Alabama?
Since Alabama has no state minimum wage law, the federal FLSA rules apply to tipped employees. This means employers can pay a direct cash wage of $2.13 per hour, provided that the employee's tips, when combined with the cash wage, total at least the federal minimum wage of $7.25 per hour.
Does the federal minimum wage apply to all employees in Alabama?
The federal minimum wage applies to most employees in Alabama who are covered by the Fair Labor Standards Act (FLSA). There are certain exemptions for specific types of employees (e.g., executive, administrative, professional employees who meet specific salary and duty tests), but for non-exempt workers, the $7.25/hour federal minimum is the standard.
When was the last time Alabama considered a state minimum wage?
While there have been discussions, the most significant legislative action regarding minimum wage in Alabama in recent years was the 2016 passage of Ala. Code § 25-7-41, which explicitly preempted local minimum wage ordinances, effectively solidifying the state's reliance on the federal minimum wage.
Are there any other state wage laws in Alabama besides minimum wage?
Alabama has a very minimalist approach to wage and hour laws. Beyond the absence of a state minimum wage, there are no state laws governing overtime (federal FLSA controls), pay frequency, wage statements, or final paycheck mandates. Employers primarily look to federal law for these regulations.