Alabama Minimum Wage for 2020, 2021
Alabama's state minimum wage rate is $7.25 per hour. This is the same as the current Federal Minimum Wage rate. The minimum wage applies to most employees in Alabama, with limited exceptions including tipped employees, some student workers, and other exempt occupations.†
The Alabama minimum wage was last changed in 2008, when it was raised $0.70 from $6.55 to $7.25.
Alabama does not have a state minimum wage - instead, they adopt the current Federal Minimum Wage by reference.
LOCAL MINIMUM WAGE:
Birmingham, AL: On August 18, 2015, The Birmingham City Council passed an ordinance setting a minimum wage of $8.50 per hour effective July 1 2016, increasing to $10.10 per hour on July 1 2017.
Alabama employers may not pay you under $7.25 per hour unless you or your occupation are specifically exempt from the minimum wage under state or federal law.
If you have questions about the Alabama minimum wage, please ask us and someone will respond to you as soon as possible. Looking for a new job? Use the free Alabama job search utility to find local job openings hiring now.
All Alabama employers must display an approved Alabama minimum wage poster in a prominent place to inform employees about the minimum wage and their worker's rights under Alabama labor law.
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Alabama Minimum Wage & Labor Law Posters
The Fair Labor Standards Act (FLSA) and Alabama labor law requires all employers in Alabama to visibly display an approved Alabama minimum wage poster, and other Alabama and federal labor law posters, to ensure that all employees are aware of federal and Alabama labor law and overtime regulations. Failure to display a Alabama labor law poster in the workplace can result in severe fines.
The Alabama minimum wage poster, and additional required Alabama labor law posters, are also available on the Alabama labor law posters download page.
Alabama Overtime Minimum Wage
All workers who put in over 40 weekly hours are entitled to a minimum wage of at least 1.5 times the regular applicable minimum wage (learn more about Alabama overtime pay). Some states require workers who work over a certain number of daily hours to be eligible for this overtime rate as well (Alabama law does not specify a daily overtime limit).
The FLSA guarantees all AL employees adequate overtime compensation for all qualifying overtime hours worked. If your employer does not pay adequate overtime wages, you can file an unpaid overtime claim with the Alabama Department of Labor.
Alabama Minimum Wage Exemptions
In addition to any Alabama-specific minimum wage exemptions described above, the Federal Fair Labor Standards act defines special minimum wage rates applicable to certain types of workers. You may be paid under the Alabama minimum wage if you fit into one of the following categories:
- Alabama Under 20 Minimum Wage - $4.25 - Federal law allows any employer in Alabama to pay a new employee who is under 20 years of age a training wage of $4.25 per hour for the first 90 days of employment.
- Alabama Tipped Minimum Wage - See Here - Employees who earn a certain amount of tips every month may be paid a lower cash minimum wage, but must earn at least $7.25 including tips every hour. For more details, read about the Alabama tipped minimum wage.
Frequently Asked Questions - Alabama Minimum Wage & Labor Law
- What is the Alabama minimum wage?
The current Alabama minimum wage of $7.25 per hour is the lowest amount a non-exempt employee in Alabama can legally be paid for hourly work. Special minimum wage rates, such as the "Alabama waitress minimum wage" for tipped employees, may apply to certain workers.
- How much will I earn working a minimum wage jobin Alabama?
A full time minimum wage worker in Alabama working 40 hours a week, 52 weeks a year, will earn $58.00 per day, $290.00 per week, and $15,080.00 per year1. The national poverty line for a family unit consisting of two people is $16,020.00 per year.
- What is the Alabama under 18 minimum wage?
Alabama employers may pay 18 year olds and minors the youth minimum wage of $4.25 for the first 90 days of employment. Other labor law exemptions for minors in Alabama may exist.
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1 These earnings estimates do not account for the Alabama income tax , federal income tax, or local/municipal income taxes.
2 Poverty line for a family of two in the lower 48 published 2016 by the U.S. Department of Health & Human Services