Alabama Minimum Wage 2026
⚠️Informational only — not legal or tax advice.
Last Updated: February 4, 2026
Last Reviewed: February 4, 2026
Applicable Period: 2026
Jurisdiction: State of Alabama, United States
Update Schedule: Quarterly reviews in 2026; annual reviews thereafter
Table of Contents
- Introduction
- Alabama Minimum Wage – 2026 Quick Reference
- Overview of Minimum Wage Law in Alabama
- Current Minimum Wage Rates in Alabama 2026
- Minimum Wage for Tipped Employees
- Local Minimum Wage Ordinances in Alabama
- Who Is Covered and Who Is Exempt
- Employer Obligations and Enforcement
- Alabama Minimum Wage vs Federal Law
- Minimum Wage Posting Requirements
- Frequently Asked Questions
- Information Verification Log
Introduction
The minimum wage in Alabama is governed entirely by federal law, as the state has not enacted its own minimum wage statute. For 2026, Alabama employers must comply with the federal minimum wage of $7.25 per hour established under the Fair Labor Standards Act (FLSA). Alabama law additionally prohibits cities and counties from enacting local minimum wage ordinances that exceed the federal rate.
Minimum wage requirements in Alabama operate under the Fair Labor Standards Act alongside Alabama Code § 25-7-41, which preempts local minimum wage regulations. The Alabama Department of Labor does not administer minimum wage enforcement, as wage and hour matters fall under the jurisdiction of the federal Wage and Hour Division. Employers covered by the FLSA must comply with federal minimum wage, overtime, and recordkeeping requirements.
This page provides an authoritative overview of minimum wage law as it applies to Alabama employers and workers in 2026, including federal rate requirements, tipped employee provisions, coverage and exemptions, enforcement procedures, and the state’s prohibition on local wage ordinances. All information is compiled from official government sources.
| Alabama Minimum Wage — 2026 Quick Reference | |||
|---|---|---|---|
| Category | Rate | Effective Date | Official Source |
| State minimum wage | Federal rate applies | — | Alabama Code § 25-7-41 |
| Federal minimum wage | $7.25/hour | July 24, 2009 | U.S. Department of Labor |
| Tipped minimum wage | $2.13/hour | July 24, 2009 | FLSA § 203(m) |
| Tip credit allowed | Yes (up to $5.12) | — | Federal law |
| Next scheduled increase | None | — | Federal law |
| Rate adjustment mechanism | Fixed (requires federal legislation) | — | FLSA |
| Local minimum wages | Prohibited | — | Alabama Code § 25-7-41 |
| Youth minimum wage (under 20) | $4.25/hour (first 90 days) | — | FLSA |
Last verified: February 4, 2026 via Alabama Department of Labor and U.S. Department of Labor
Overview of Minimum Wage Law in Alabama
Legal Authority
Alabama does not have a state minimum wage law. According to the Alabama Department of Labor, employers in Alabama must follow federal guidelines set forth by the U.S. Wage and Hour Division, a division of the U.S. Department of Labor. The absence of state minimum wage legislation means that the Fair Labor Standards Act (FLSA) serves as the sole legal authority governing minimum wage requirements for covered employers and employees in Alabama.
Alabama Code § 25-7-41 explicitly prohibits counties, municipalities, and other political subdivisions from enacting ordinances requiring employers to provide wages or employment benefits not mandated by state or federal law. This preemption statute, enacted in 2016, prevents local governments from establishing minimum wage rates that differ from the federal standard.
Relationship to Federal Law
Under the Fair Labor Standards Act, the federal minimum wage establishes a floor of $7.25 per hour for covered employers and employees. This rate, which took effect July 24, 2009, has remained unchanged since that date. Because Alabama has not enacted its own minimum wage statute, federal law provides the exclusive minimum wage protection for workers in the state.
The federal minimum wage applies to employers engaged in interstate commerce or with annual gross sales exceeding $500,000. Individual employees may also be covered if their work regularly involves interstate commerce, regardless of their employer’s total sales volume. Alabama employers who meet FLSA coverage requirements must comply with federal minimum wage, overtime, recordkeeping, and youth employment standards.
Coverage Scope
The FLSA applies to most private sector employers and employees, as well as federal, state, and local government workers. Coverage extends to businesses involved in producing, handling, or selling goods moved in interstate commerce. Agricultural employers and certain other specialized industries face specific coverage thresholds. Employers not covered by the FLSA have no minimum wage obligations under Alabama law, as the state has not established alternative minimum wage requirements.
Because Alabama lacks independent state minimum wage legislation, workers in the state receive minimum wage protection exclusively through federal coverage. Employees who fall outside FLSA coverage have no state law minimum wage entitlement.
Enforcement Structure
The U.S. Department of Labor’s Wage and Hour Division administers and enforces minimum wage requirements in Alabama. The federal agency investigates complaints, conducts compliance inspections, and takes enforcement actions against employers who violate FLSA provisions. The Alabama Department of Labor does not have minimum wage enforcement authority and directs wage and hour inquiries to federal officials.
The Wage and Hour Division maintains offices in Montgomery, Birmingham, and Mobile to serve Alabama employers and workers. Employees who believe they have not received proper minimum wage compensation can file complaints with the federal agency for investigation and potential recovery of unpaid wages.
Current Minimum Wage Rates in Alabama 2026
Federal Minimum Wage Rate
As of 2026, the minimum wage applicable to covered employers in Alabama is $7.25 per hour, the federal rate established under the Fair Labor Standards Act. This rate has remained unchanged since July 24, 2009, when the final phase of a multi-year federal minimum wage increase took effect. Alabama employers subject to FLSA coverage must pay at least $7.25 per hour for all hours worked by non-exempt employees.
The federal minimum wage applies uniformly across Alabama. Unlike states with their own minimum wage statutes, Alabama has no state-level rate that varies by geographic region, employer size, or industry. All covered employers must comply with the single federal standard of $7.25 per hour.
No State Minimum Wage
Alabama is one of five states that has not enacted its own minimum wage law. The Alabama Department of Labor explicitly states that the state “does not have any state laws governing wage and hour issues.” Consequently, minimum wage protection for Alabama workers derives entirely from federal law coverage. Employees working for employers not covered by the FLSA receive no minimum wage protection under Alabama state law.
This absence of state minimum wage legislation means that changes to the federal minimum wage automatically affect Alabama workers without requiring state legislative action. Conversely, Alabama’s minimum wage will not increase unless Congress acts to raise the federal rate.
Youth Minimum Wage
Under federal law, employers may pay workers under 20 years of age a youth minimum wage of $4.25 per hour during their first 90 consecutive calendar days of employment. This subminimum wage applies only to newly hired young workers and expires after the 90-day period, at which point employers must pay the full federal minimum wage of $7.25 per hour.
The youth minimum wage provision prohibits employers from displacing other workers to hire employees at the lower rate. Employers cannot take any action to displace employees, including reducing hours or wages, transferring employees, or otherwise terminating employment for the purpose of hiring individuals at the youth minimum wage.
Full-Time Student Program
The FLSA permits certain employers to pay full-time students at 85% of the federal minimum wage ($6.16 per hour) under special certificates issued by the U.S. Department of Labor. This subminimum wage may apply to students employed in retail or service establishments, agriculture, or colleges and universities. Students may work no more than 20 hours per week when school is in session under this program.
Employers must obtain authorization from the Wage and Hour Division before paying the student subminimum wage. The program imposes strict limitations on the number of student workers and hours permitted at the reduced rate.
Workers with Disabilities
Employers may obtain special certificates under FLSA Section 14(c) authorizing payment of subminimum wages to workers whose earning or productive capacity is impaired by physical or mental disabilities. The subminimum wage must be commensurate with the productivity of the individual worker compared to experienced workers performing similar work.
The Section 14(c) program requires employers to obtain certification from the U.S. Department of Labor and meet extensive documentation and notice requirements. Workers with disabilities paid subminimum wages must receive written notification of the terms under which they are employed.
No Scheduled Increases
No minimum wage increases are currently scheduled in Alabama. The federal minimum wage of $7.25 per hour will remain in effect unless changed by future federal legislation. No bills to increase the federal minimum wage have been enacted since 2007, when Congress approved the phased increases that culminated in the current $7.25 rate in 2009.
Alabama state law does not establish any mechanism for minimum wage increases, as the state has not enacted minimum wage legislation. Any change to the minimum wage applicable in Alabama requires action by Congress to amend the Fair Labor Standards Act.
Minimum Wage for Tipped Employees
Federal Tipped Minimum Wage
Alabama follows federal regulations for tipped employees under the Fair Labor Standards Act. Employers may pay tipped employees a cash wage of $2.13 per hour, provided that the employee’s tips combined with the cash wage equal at least the federal minimum wage of $7.25 per hour.
Cash wage requirement: $2.13 per hour
Maximum tip credit: $5.12 per hour
Total minimum compensation: $7.25 per hour (cash wage + tips)
If an employee’s tips do not bring total hourly compensation to $7.25, the employer must pay the difference to ensure the employee receives at least the full federal minimum wage for all hours worked.
Who Qualifies as a Tipped Employee
Under the FLSA, a “tipped employee” is defined as any employee engaged in an occupation in which they customarily and regularly receive more than $30 per month in tips. Qualifying occupations typically include:
- Restaurant servers and bartenders
- Hotel and casino service workers
- Parking attendants and valets
- Delivery drivers who receive tips
- Hairstylists and barbers
- Taxi and rideshare drivers who receive tips
- Other service occupations where tipping is customary
Employer Obligations for Tipped Workers
Employers who take a tip credit against minimum wage obligations must comply with specific federal requirements:
- Inform employees before employing them as tipped workers that the employer intends to claim a tip credit. The employer must provide information on the cash wage amount, the tip credit amount claimed, and that tips are the property of the employee.
- Ensure total compensation (cash wage plus tips) equals or exceeds $7.25 per hour for all hours worked. Employers must monitor employee tip income and make up any shortfall.
- Pay the difference if an employee’s tips during any workweek fail to bring total compensation to the minimum wage. The employer cannot average tips over multiple workweeks.
- Maintain accurate records of employee tips and hours worked. Employers must keep records of tips received by each employee, either through employee reports or other reliable means.
- Allow employees to retain all tips except when participating in valid tip pooling arrangements that meet federal requirements.
Tip Pooling and Sharing
Federal law permits tip pooling among employees who customarily and regularly receive tips. Valid tip pools may include:
- Servers, bartenders, and bussers
- Hosts and hostesses who provide direct service
- Service bartenders who support servers
- Other employees in the chain of service
Prohibited participants: Employers, managers, and supervisors may not participate in tip pools or retain any portion of employee tips, regardless of whether the employer takes a tip credit. This prohibition applies even to managers who provide direct service to customers.
Tip pool requirements: All employees participating in a tip pool must be part of the occupational category of employees who customarily and regularly receive tips. Back-of-house staff such as cooks, dishwashers, and janitors generally cannot participate in tip pools that include tipped employees.
Service Charges
Mandatory service charges added to customer bills are not tips under federal law. Service charges belong to the employer unless the employer voluntarily distributes them to employees. Employers must clearly distinguish between tips (which belong to employees) and service charges (which are controlled by the employer).
If service charges are distributed to employees, they count toward satisfying the federal minimum wage but cannot be counted toward the tip credit unless they meet the FLSA definition of tips received directly from customers.
Local Minimum Wage Ordinances in Alabama
State Preemption of Local Ordinances
Alabama law explicitly prohibits cities and counties from enacting their own minimum wage rates. Under Alabama Code § 25-7-41, enacted in 2016, counties, municipalities, and other political subdivisions of the state cannot enact or administer any ordinance, policy, rule, or mandate requiring employers to provide wages or employment benefits not required by state or federal law.
This preemption statute declares void any local ordinance that establishes minimum wage requirements differing from federal standards. The law was enacted in direct response to the Birmingham City Council’s 2015 ordinance establishing a $10.10 minimum wage within city limits. The state legislature’s preemption measure took effect in 2016, preventing Birmingham’s minimum wage increase from being implemented.
The Birmingham Minimum Wage Ordinance
In August 2015, the Birmingham City Council passed an ordinance to incrementally raise the minimum wage within Birmingham to $10.10 per hour. The ordinance would have increased the minimum wage from the federal rate of $7.25 to $8.50 on July 1, 2016, and then to $10.10 on July 1, 2017.
However, the Alabama legislature responded by enacting Alabama Code § 25-7-41 in February 2016, preempting local government authority to establish minimum wage rates. The Birmingham ordinance was voided before it took effect, and no local minimum wage increase was implemented.
Current State of Local Wages
No cities or counties in Alabama currently have minimum wage rates that differ from the federal minimum wage of $7.25 per hour. The state’s preemption statute prevents any local jurisdiction from enacting higher minimum wage ordinances.
All employers in Alabama, regardless of location, must comply with the uniform federal minimum wage rate. There are no geographic variations, municipal exceptions, or county-level wage requirements within the state.
How the Preemption Law Works
Alabama Code § 25-7-41 prohibits local governments from requiring employers to provide:
- Minimum wages exceeding federal requirements
- Paid or unpaid leave not mandated by federal law
- Vacation pay not required by federal law
- Work schedule requirements beyond federal standards
- Any other employment benefits not required by state or federal law
The statute declares void any local ordinance, policy, rule, or mandate inconsistent with this prohibition. Local governments have no authority to impose employment requirements that exceed or differ from federal standards in Alabama.
Enforcement of Preemption
The state preemption statute is self-executing, meaning that any local ordinance inconsistent with state law is automatically void without requiring separate legal action. Employers operating in multiple jurisdictions within Alabama do not need to track varying local minimum wage rates, as no such variations exist under current law.
If a local government were to attempt to enact a minimum wage ordinance despite the preemption statute, the ordinance would be legally unenforceable. Employers could challenge such ordinances in court, and courts would be required to declare them void under Alabama Code § 25-7-41.
Who Is Covered and Who Is Exempt
Employees Covered by Federal Minimum Wage
The Fair Labor Standards Act covers employees through two primary mechanisms: enterprise coverage and individual coverage. Most employees in Alabama receive minimum wage protection through one of these coverage pathways.
Enterprise Coverage: Employers with annual gross sales of $500,000 or more are covered enterprises, and all employees working for the enterprise are entitled to FLSA protections, including minimum wage. Hospitals, schools, government agencies, and institutions providing medical or nursing care are covered regardless of sales volume.
Individual Coverage: Even if an employer is not a covered enterprise, individual employees are protected if their work regularly involves interstate commerce. This includes workers who handle goods or materials that have moved in or will move in interstate commerce, make out-of-state phone calls, process credit card transactions, or maintain records of interstate transactions.
Covered employees include:
- Private sector workers: Full-time and part-time employees of private businesses meeting coverage criteria
- Government employees: Federal, state, and local government workers
- Domestic service workers: Housekeepers, cooks, and other domestic workers meeting specific coverage thresholds
- Salaried non-exempt employees: Employees paid on a salary basis who do not qualify for overtime exemption
- Hourly employees: Workers compensated on an hourly basis
- Temporary and seasonal workers: If working for covered employers
- Minor employees: Workers under age 18, subject to special youth employment provisions
Common Exemptions from Minimum Wage
The FLSA exempts certain categories of employees from minimum wage requirements. Alabama applies federal exemptions, as the state has no separate minimum wage law.
Executive, Administrative, and Professional Employees
Employees performing bona fide executive, administrative, or professional duties may be exempt if they meet both salary and duties tests. Under current federal standards following court rulings, the minimum salary threshold for exemption is $684 per week ($35,568 annually). Employees must also perform exempt duties as their primary work responsibilities.
Outside Sales Employees
Employees whose primary duty is making sales away from the employer’s place of business and who are customarily and regularly engaged away from the employer’s business location are exempt from minimum wage requirements. Inside sales employees do not qualify for this exemption.
Computer Employees
Certain computer systems analysts, programmers, software engineers, and similarly skilled workers may be exempt if paid at least $684 per week on a salary basis or $27.63 per hour on an hourly basis and meet specific duties requirements related to systems analysis, programming, or software engineering.
Seasonal Amusement or Recreational Establishments
Employees of seasonal amusement or recreational establishments that operate no more than seven months per year or had average receipts for any six months not exceeding one-third of receipts for the other six months may be exempt from minimum wage requirements.
Agricultural Workers
Agricultural employees face different coverage standards than other workers. Small farms that used fewer than 500 man-days of agricultural labor in any calendar quarter of the preceding year are not subject to FLSA minimum wage requirements. Immediate family members working on farms operated by parents or other family members are exempt.
Newspaper Delivery Workers
Employees engaged in delivering newspapers to consumers are exempt from minimum wage requirements under the FLSA.
Casual Babysitters
Babysitters employed on a casual basis are exempt from federal minimum wage requirements. Casual babysitting typically means irregular, sporadic employment without expectation of continued work.
Independent Contractors
Properly classified independent contractors are not employees and therefore not covered by minimum wage requirements. However, the FLSA applies strict tests to determine whether a worker is an employee or independent contractor based on economic reality factors.
Misclassification of employees as independent contractors to avoid minimum wage obligations constitutes an FLSA violation. The Wage and Hour Division investigates misclassification allegations and may require employers to reclassify workers and pay back wages.
Small Employer Considerations
Unlike some states, Alabama does not have employer size exemptions from minimum wage requirements. However, the FLSA’s enterprise coverage threshold of $500,000 in annual gross sales effectively exempts many small businesses from federal coverage.
Small employers not meeting the $500,000 threshold may still be subject to FLSA minimum wage requirements if their employees engage in interstate commerce activities. Even very small businesses often meet individual coverage standards through routine business activities involving interstate commerce.
Employer Obligations and Enforcement
Federal Employer Compliance Requirements
Employers subject to the Fair Labor Standards Act must comply with federal minimum wage obligations and related requirements:
- Pay the applicable minimum wage of at least $7.25 per hour for all hours worked by non-exempt employees. For tipped employees, ensure that cash wage plus tips equals at least $7.25 per hour.
- Maintain accurate payroll records for at least three years, including:
- Employee full name and social security number
- Address, including zip code
- Birth date, if younger than 19
- Gender and occupation
- Time and day when employee’s workweek begins
- Hours worked each day and total hours worked each workweek
- Basis of wage payment (hourly rate, salary, piecework, etc.)
- Regular hourly pay rate
- Total daily or weekly straight-time earnings
- Total overtime earnings for the workweek
- All additions to or deductions from wages
- Total wages paid each pay period
- Date of payment and pay period covered
- Display required workplace posters in conspicuous locations where all employees can readily see them. The FLSA minimum wage poster must be posted in all establishments covered by federal wage and hour laws.
- Classify workers correctly as employees or independent contractors. Misclassification to avoid minimum wage obligations violates federal law.
- Track time accurately for all non-exempt employees, including start times, end times, meal breaks, and total hours worked.
Enforcement by the U.S. Department of Labor
The Wage and Hour Division of the U.S. Department of Labor enforces minimum wage requirements in Alabama. The division maintains offices in three Alabama locations:
- Montgomery Office: (334) 223-7450
- Birmingham Office: (205) 536-8570
- Mobile Office: (251) 441-5311
Federal investigators conduct compliance investigations, examine employer records, interview employees, and determine whether minimum wage violations have occurred. The Wage and Hour Division may initiate investigations based on employee complaints or through agency-selected enforcement initiatives targeting specific industries or geographic areas.
Filing a Wage Complaint
Employees who believe they have not been paid proper minimum wage may file a complaint with the Wage and Hour Division. Filing methods include:
- Phone: 1-866-487-9243 (1-866-4-US-WAGE)
- Online: Visit www.dol.gov/agencies/whd/contact/complaints for complaint information
- In-person: Contact the nearest Wage and Hour Division office in Montgomery, Birmingham, or Mobile
All wage complaints are confidential. The Wage and Hour Division does not disclose the name of complainants or the nature of complaints to employers without the complainant’s permission. Federal law prohibits employer retaliation against workers who file complaints or participate in investigations.
Employees do not need to hire an attorney to file a complaint with the Wage and Hour Division. The agency investigates complaints at no cost to workers and may pursue recovery of unpaid wages on behalf of employees.
Penalties for Minimum Wage Violations
Employers who violate federal minimum wage requirements face significant penalties:
Back Wages: Employers must pay employees the full difference between wages paid and the minimum wage required for all hours worked. Back wages are typically recoverable for two years preceding the complaint date, or three years in cases of willful violations.
Liquidated Damages: Under the FLSA, employers who violate minimum wage requirements are liable for liquidated damages equal to the amount of unpaid wages unless the employer demonstrates it acted in good faith and had reasonable grounds for believing it was in compliance.
Civil Money Penalties: The Wage and Hour Division may assess civil penalties of up to $2,374 per violation for repeated or willful violations of minimum wage requirements. Enhanced penalties of up to $15,138 may be assessed for each child labor violation causing death or serious injury to a minor.
Criminal Prosecution: Willful violations of the FLSA may result in criminal prosecution, with penalties including fines and potential imprisonment. Conviction for a second offense may result in increased criminal penalties.
Injunctive Relief: The Secretary of Labor may seek court orders enjoining employers from continuing violations and requiring compliance with FLSA provisions.
Statute of Limitations
Employees must file complaints or lawsuits to recover unpaid minimum wages within two years of the violation, or three years for willful violations. The statute of limitations period begins running from the date each paycheck containing underpayment was issued.
Once the statute of limitations expires, employees lose the legal right to recover unpaid wages for those time periods. Workers should file complaints promptly upon discovering minimum wage violations to preserve all available remedies.
Private Right of Action
In addition to filing complaints with the Wage and Hour Division, employees may file private lawsuits in federal or state court to recover unpaid minimum wages. Employees who prevail in minimum wage lawsuits may recover back wages, liquidated damages, reasonable attorney fees, and court costs.
Employees cannot file private lawsuits if the Secretary of Labor has already filed suit to recover the wages or if the Wage and Hour Division has supervised payment of back wages. An employee’s acceptance of back wages supervised by the Wage and Hour Division constitutes full payment and bars subsequent private legal action for those wage claims.
Alabama Minimum Wage vs Federal Law
The Federal Minimum Wage Floor
The Fair Labor Standards Act establishes a federal minimum wage of $7.25 per hour, which has remained unchanged since July 24, 2009. This federal rate sets a nationwide floor for minimum wage requirements and applies to employers engaged in interstate commerce or with annual gross sales exceeding $500,000.
The federal minimum wage represents the longest period without an increase since the FLSA established minimum wage protections in 1938. Previous minimum wage increases occurred in 2007 ($5.85), 2008 ($6.55), and 2009 ($7.25) under legislation enacted by Congress in 2007.
State Adoption of Federal Standards
Alabama has not enacted state minimum wage legislation and instead relies entirely on federal law to provide minimum wage protections. The Alabama Department of Labor directs all wage and hour inquiries to the federal Wage and Hour Division, as the state has no minimum wage enforcement authority.
For employers covered by both federal law and, if it existed, state law, Alabama would apply the “higher applicable rate” rule requiring payment of whichever minimum wage provides greater compensation. However, because Alabama has no state minimum wage, this principle is not applicable—covered employers simply comply with the federal minimum wage of $7.25 per hour.
Employers Not Covered by Federal Law
Employers who do not meet FLSA coverage criteria have no minimum wage obligations in Alabama, as the state has not established alternative minimum wage requirements for workers outside federal coverage. This creates a gap in wage protections for employees working for:
- Very small businesses not engaged in interstate commerce
- Employers with annual gross sales below $500,000 whose employees do not individually engage in interstate commerce
- Certain agricultural operations below federal coverage thresholds
- Other exempted categories under the FLSA
Workers employed by non-covered employers have no legal minimum wage entitlement under Alabama or federal law. These employees may be paid any wage amount agreed upon between employer and employee, regardless of how low.
Comparison to Other States
Alabama’s reliance solely on federal minimum wage places it among five states without independent state minimum wage laws. The other states in this category are Louisiana, Mississippi, South Carolina, and Tennessee. Workers in these states receive minimum wage protection exclusively through federal FLSA coverage.
In contrast, 45 states and the District of Columbia have enacted their own minimum wage statutes. Of these, 30 states currently have minimum wage rates exceeding the federal minimum of $7.25 per hour. The highest state minimum wages for 2026 include Washington ($16.66), California ($16.50), and Massachusetts ($15.00).
Alabama’s minimum wage of $7.25 ranks among the lowest in the nation, matched only by the 19 other states that apply the federal minimum without state-level increases. The absence of state legislation means Alabama workers rely entirely on Congress to enact any future minimum wage increases.
Minimum Wage Posting Requirements
Federal Poster Requirements
Employers subject to the Fair Labor Standards Act must display the federal minimum wage poster in conspicuous locations accessible to all employees. The poster, titled “Employee Rights Under the Fair Labor Standards Act,” informs workers of their rights regarding minimum wage, overtime pay, child labor protections, and other FLSA provisions.
Where to obtain the poster:
- Download from the U.S. Department of Labor
- Request printed copies from the Wage and Hour Division
- Available languages: English, Spanish, and other languages upon request
Posting locations: The notice must be posted in each workplace location where employees can readily see it. Typical posting locations include break rooms, time clock areas, employee entrances, and other prominent locations where workplace notices are customarily displayed.
Poster format: While no specific size is required, the poster must be large enough for employees to read easily. Employers should use the official Department of Labor poster format without modification.
Compliance with Posting Requirements
Failure to display required FLSA posters may result in penalties during Wage and Hour Division investigations. While the FLSA does not specify monetary penalties for poster violations alone, failure to post may be considered evidence of willful violation if employees are unaware of their minimum wage rights.
Employers must update posters when minimum wage rates change. Although the federal minimum wage has not increased since 2009, employers should periodically verify they are displaying current versions of required workplace posters.
Additional Federal Posters
Depending on employer size and industry, additional federal workplace posters may be required:
- Family and Medical Leave Act (FMLA): Required for employers with 50 or more employees
- Employee Polygraph Protection Act (EPPA): Required for most private employers
- Occupational Safety and Health Act (OSHA): Required for most employers
- Equal Employment Opportunity (EEO): Required for employers with 15 or more employees
Employers should consult the U.S. Department of Labor’s poster advisor to determine all applicable federal posting requirements for their specific workplace.
No Alabama State Poster Required
Because Alabama does not have minimum wage legislation, the state does not issue or require a separate minimum wage poster. Employers need only display the federal FLSA poster to satisfy minimum wage posting obligations in Alabama. The Alabama Department of Labor does not distribute minimum wage posters, as wage and hour matters fall under exclusive federal jurisdiction.
Frequently Asked Questions: Minimum Wage in Alabama 2026
What is the minimum wage in Alabama in 2026?
The minimum wage in Alabama is $7.25 per hour, the federal rate established under the Fair Labor Standards Act. Alabama has not enacted its own state minimum wage law, so the federal minimum wage serves as the exclusive minimum wage requirement for covered employers and employees in the state.
When is the next minimum wage increase in Alabama?
No minimum wage increases are currently scheduled in Alabama. The federal minimum wage of $7.25 per hour will remain in effect unless changed by future Congressional action. Alabama does not have state minimum wage legislation that would allow for independent state-level increases.
Does Alabama allow tip credit?
Yes, Alabama follows federal regulations allowing employers to pay tipped employees a cash wage of $2.13 per hour, with up to $5.12 in tip credit, provided total compensation reaches $7.25 per hour. Employers must make up any shortfall if tips combined with the cash wage do not equal the federal minimum wage.
Are there different minimum wages in different cities in Alabama?
No, Alabama maintains a uniform minimum wage of $7.25 per hour throughout the state. Alabama Code § 25-7-41 prohibits cities and counties from enacting minimum wage rates higher than the federal standard. All employers in Alabama must comply with the federal minimum wage regardless of location.
Who is exempt from minimum wage in Alabama?
Common exemptions from federal minimum wage include executive, administrative, and professional employees meeting salary and duties tests (currently $684 per week salary threshold), outside sales employees, certain computer professionals, seasonal amusement workers, agricultural workers for small farms, and properly classified independent contractors. Alabama applies federal exemption standards exclusively.
What happens if an employer pays below minimum wage in Alabama?
Employers who pay below the federal minimum wage face back wage liability for unpaid amounts, liquidated damages equal to unpaid wages, civil penalties up to $2,374 per violation for willful violations, and potential criminal prosecution. Employees can file complaints with the U.S. Department of Labor’s Wage and Hour Division to recover unpaid wages. Federal law prohibits retaliation against workers who report violations.
Do small businesses have to pay minimum wage in Alabama?
Small businesses must pay the federal minimum wage if they meet FLSA coverage criteria: annual gross sales of $500,000 or more, or employees who engage in interstate commerce. Very small businesses not engaged in interstate commerce may fall outside federal coverage, and Alabama law imposes no separate minimum wage requirements for employers not covered by federal law.
Is Alabama’s minimum wage higher than the federal minimum?
No, Alabama does not have its own state minimum wage. The state applies the federal minimum wage of $7.25 per hour. Alabama is one of five states without independent minimum wage legislation, relying entirely on federal law to provide wage protections.
How often does Alabama increase its minimum wage?
Alabama’s minimum wage changes only when Congress increases the federal minimum wage, as the state has no independent minimum wage law. The federal minimum wage has remained at $7.25 since July 24, 2009, representing the longest period without an increase since the FLSA established minimum wage protections in 1938.
Can employers pay less than minimum wage during training?
Federal law permits employers to pay a youth minimum wage of $4.25 per hour to workers under age 20 during their first 90 consecutive calendar days of employment. After 90 days, employers must pay the full federal minimum wage of $7.25 per hour. This provision applies only to newly hired young workers and prohibits displacement of other employees.
How to file a minimum wage complaint in Alabama
Employees who believe they have not received proper minimum wage compensation may file a wage complaint with the U.S. Department of Labor’s Wage and Hour Division. Filing methods include:
- Phone: 1-866-487-9243 (1-866-4-US-WAGE)
- Online: Visit www.dol.gov/agencies/whd/contact/complaints
- In-person: Contact the nearest Wage and Hour Division office in Montgomery (334-223-7450), Birmingham (205-536-8570), or Mobile (251-441-5311)
The Wage and Hour Division will investigate complaints confidentially and may recover unpaid wages on behalf of employees. Federal law prohibits employer retaliation against workers who file wage complaints or participate in investigations.
Do remote workers in Alabama get the Alabama minimum wage?
Remote workers physically located in Alabama while performing work are generally entitled to the federal minimum wage of $7.25 per hour if their employer is covered by the FLSA, regardless of where the employer is based. The minimum wage typically applies based on where the employee physically performs work. If the employer is based in a state with a higher minimum wage, workers should verify which state’s law applies to their specific situation.
Information Verification Log
All information on this page has been compiled from official government sources and verified for accuracy as of the dates below.
| Information Verification Log | ||
|---|---|---|
| Source | Last Verified | Full URL |
| Alabama Department of Labor – Wage and Hour Information | February 4, 2026 | https://labor.alabama.gov/Wage_and_Hour_Info.pdf |
| Alabama Code § 25-7-41 (Local Wage Preemption) | February 4, 2026 | http://alisondb.legislature.state.al.us/.../25-7-41.htm |
| Fair Labor Standards Act (FLSA) | February 4, 2026 | https://www.dol.gov/agencies/whd/flsa |
| U.S. Department of Labor – Minimum Wage | February 4, 2026 | https://www.dol.gov/agencies/whd/minimum-wage |
| U.S. Department of Labor – FLSA Poster | February 4, 2026 | https://www.dol.gov/agencies/whd/posters/flsa |
| U.S. Department of Labor – File a Complaint | February 4, 2026 | https://www.dol.gov/agencies/whd/contact/complaints |
| Alabama Department of Labor – Homepage | February 4, 2026 | https://labor.alabama.gov |