Alabama Labor Laws Guide

Alabama wage laws

Alabama is one of the few US states without labor laws concerning wages. Therefore, hese states must follow the federal rules established by the Fair Labor Standards Act (FLSA).

The following are the regulations concerning the state minimum, tipped hourly wage, and the youth minimum wage in Alabama.

Alabama minimum wage

What is the minimum wage in Alabama in 2024?

Since Alabama does not regulate minimum wages, employees are entitled to the federal minimum wage of $7.25 per hour, as defined by the FLSA.

Tipped minimum wage in Alabama

What is the minimum wage for tipped employees in Alabama in 2024?

When it comes to the employees whose compensation primarily comes from tips, FLSA standards also apply.

According to the FLSA, a tipped employee is “any employee engaged in an occupation in which he customarily and regularly receives more than $30 a month in tips.”

The minimum hourly wage for tipped employees in Alabama is $2.13 — but the total compensation amount per hour cannot be less than $7.25 with tips.

This means that an employer is allowed to take a maximum tip credit of $5.12 per hour from an employee.

Also, if a tipped employee does not make enough to obtain the minimum wage of $7.25 per hour — the employer must pay the difference to equal the minimum wage of $7.25 an hour.

Alabama subminimum wage

What is the minimum wage for youth employees in Alabama in 2024?

According to federal law, employers in Alabama can pay employees under 20 years of age a minimum wage of $4.25 per hour for the first 90 employment days.

However, full-time students working in retail, agriculture, or colleges and universities are entitled to 85% of the minimum wage, which comes down to around $6.16 per hour in Alabama.

Moreover, the employer must obtain a certificate to be able to employ a full-time student.

Also, full-time students can work up to 20 hours a week (8 hours a day) during school time and 40 hours per week when school is not in session.

Alabama payment laws

The state of Alabama does not have payday regulations. Instead, here are the most common pay frequency schemes in the USA:

• Weekly — Employees are paid once a week (52 paychecks per year),
• Biweekly — Employees are paid every other week (26 paychecks per year),
• Semi-monthly — Employees are paid twice a month (24 paychecks per year), and
• Monthly — Employees are paid once a month (12 paychecks per year).

However, Alabama has a special regulation for public service transportation corporations. Such corporations that employ 50 or more workers are required to make payments to their employees every other week or biweekly.

Alabama overtime laws

What is overtime pay for employees in Alabama in 2024?

The Fair Labor Standards Act (FLSA) stipulates that employees who work over 40 hours a week are entitled to receive an overtime pay of one and a half (1.5) times the regular pay rate.

Overtime compensation is calculated on a workweek basis, and employers must pay overtime work on the regular payday.

The Act does not require employers to pay overtime for work during the weekend, holidays, night work, or any other rest day.

However, if an employer and an employee mutually agree to work overtime on those days, the employer is obliged to pay overtime for such hours.

Also, employees over 16 are allowed to work unlimited overtime hours.

Overtime exceptions and exemptions in Alabama

Starting from July 1st, 2024, according to the U.S. Department of Labor (DOL), employees who earn less than $43,888 ($35,568 currently) a year, or $844 ($684 currently) per week, will be considered nonexempt employees. This further implies that they will be eligible for overtime pay, too. 

Moreover, the wage threshold will continue to increase, and on January 1st, 2025, it will move up to $58,656 a year, or $1,128 per week. This threshold is expected to increase every 3 years to keep pace with changes in the labor market.

Those who are exempt from overtime pay include:

• Employees with high compensation performing office or non-manual work who make more than $132,964 ($107,432 currently) a year,
• Executives who are compensated on a salary basis and earn no less than $884 weekly,
• Administrative workers who receive a salary and earn no less than $884 per week,
• Learned and creative professionals who receive a salary and earn no less than $884 per week,
• Computer employees who work on a salary basis and earn no less than $884 weekly, and
• Outside sales employees.

The exemptions do not apply to “blue-collar” workers, police officers, firefighters, paramedics, rescue workers, and similar community workers.

Also, overtime rules do not apply to employees with varying schedules, i.e., use the Fluctuating Workweek Method (FWW).

Fluctuating Workweek Method (FWW) in Alabama

As of May 20, 2020, salaried employees whose working hours fluctuate weekly are entitled to overtime pay, too.

This work schedule is referred to as the “fluctuating workweek.”

For instance, a salaried, non-exempt employee will be paid $900 a week whether they work 40 hours per week or fewer hours, say 35.

If the same employee works over 40 hours per week, they are entitled to an overtime premium of one-half (0.5) times the employee's hourly rate for each overtime hour according to the FWW rule.

Employees are eligible for the FWW method if they meet the following criteria:

• Work hours vary from week to week.
• Receive a fixed salary no matter how many hours are worked per week.
• Hourly rate equals or exceeds the federal (or state) minimum wage.
• Have a clear understanding of working terms and conditions.

In addition, employees who use the FWW are entitled to additional pay or benefits such as:

• Bonuses,
• Commissions, and
• Hazard pay.

Examples for Fluctuating Workweek Method (FWW) in Alabama

Let us say an employee has a fixed weekly income of $900, and their work hours for the previous month look like this:

• Week 1: 38 hours worked,
• Week 2: 40 hours worked,
• Week 3: 47 hours worked, and
• Week 4: 40 hours worked.

Since week number 3 had more than 40 work hours, such an employee is eligible for overtime compensation based on the FWW rule. 

To calculate overtime compensation, first calculate the hourly rate.

Since employees who use the FWW method are salaried workers, they should simply divide their weekly salary by the number of hours worked for that specific week to calculate the hourly rate.

Weekly salary / Number of hours worked weekly = Hourly rate

$900 / 47 = $19 per hour

Next, multiply the hourly rate by 0.5 for every overtime hour during a week.

Therefore, the overtime compensation for week 3 is:

$19 per hour x 0.5 = $9.5 for each overtime hour worked

Total overtime compensation for week 3 is:

$9.5 x 7 overtime hours = $67

Labor laws on breaks in Alabama

The state of Alabama uses federal law, as there are no state-specific break laws. Also, breaks can be more of a mutual agreement between an employer and an employee.

According to the FLSA, an employer is not required to provide a lunch or coffee break during working hours.

Exceptions to labor laws on breaks in Alabama

According to the FLSA, when an employer provides a short break (5 to 20 minutes), they are required to compensate the employee for such breaks as regular work hours.

Still, the state of Alabama does not regulate meal breaks. Moreover, meal breaks that last at least 30 minutes are not considered work hours — hence, they are not compensable. These are called rest periods, when employees must be completely relieved from their duties.

However, if an employee is required to work during lunchtime — for example, a factory worker who is required to remain at his machine while working — then a meal break is compensable.

Alabama lactation laws in the workplace

Again, no Alabama labor law exists for breastfeeding support in the workplace. Therefore, federal law proposes that an employer must provide a reasonable break and a room for an employee to express breast milk at work. 

The room used for pumping breast milk at work has to be:

• Shielded from view,
• Free from intrusion from coworkers and the public,
• Available when an employee needs it, and
• A separate room rather than a bathroom.

Moreover, the new PUMP Act expands these rights to a few more eligible employees, such as:

• Agricultural workers,
• Nurses,
• Teachers,
• Truck and taxi drivers, and 
• Home care workers and managers.

Breastfeeding employees are entitled to have a break to pump at work for 1 year after the child's birth whenever they need to do so.

This break time is not compensable unless the employee uses the compensated break to pump milk.

Alabama leave requirements

The state of Alabama provides the following types of leave:

• Required leave
• Non-required leave

Labor laws for minors in Alabama

Alabama labor laws for minors do have some distinction as opposed to the federal child labor law.

Employers wishing to employ individuals under 18 must obtain and display a proper Child Labor Certificate(s) on every premise where a person under 18 is employed. There are 2 types of certificates: 

• Class I Certificate — for minors aged 14 and 15. This certificate must be obtained and renewed annually, and
• Class II Certificate — for minors aged 16, 17, and 18.

In addition, minors aged 14 and 15 must obtain an Eligibility to Work form from their school, which the employee must keep for reference.

Work time restrictions for Alabama minors

If an employer wishes to employ minors, several worktime restrictions need to be followed.

Time restrictions for minors aged 14 and 15 when public schools are in session:

• Up to 3 hours of work on a school day,
• Up to 8 hours of work on a non-school day,
• Up to 6 days of work weekly,
• Up to 18 hours of work weekly total,
• No work before 7 a.m. or after 7 p.m. on any day of the week, and
• No work during school hours (8 a.m. — 3 p.m.).

Time restrictions for minors aged 14 and 15 when public schools are NOT in session:

• Up to 8 hours of work a day,
• Up to 6 days of work weekly,
• Up to 40 hours of work weekly, and
• No work before 7 a.m. or after 9 p.m. each day.

Time restrictions for minors aged 16, 17, and 18 when public or private schools are in session:

• No work before 5 a.m. or after 10 p.m. on a school day (or a night preceding a school day).

Time restrictions for minors aged 16, 17, and 18 when public or private schools are NOT in session:

• No hour restrictions during this time.

Breaks for Alabama minors

According to the Child Labor Law, minors aged 14 and 15 who work 5 consecutive hours are entitled to a documented 30-minute break.

For minors over 16, the Alabama Child Labor Law does not require any break whatsoever.

Prohibited occupations for Alabama minors

The Alabama Child Labor Law prohibits minors from working in any occupation that is considered hazardous.

The hazardous occupations are grouped into two categories:

1. Occupations prohibited for minors under 16 include operating any sandpaper or wood polishing machinery, picking wool or cotton, manufacturing paints, colors, etc, and
2. Occupations prohibited for minors under 18 include wrecking, shipbreaking, operating machinery over 3 tons gross weight, manufacturing alcoholic beverages, etc.

Note: These regulations do not apply to minors aged 16 or 17 who are part of a work-study, cooperative education, or similar programs where employment is an integral part of the course of study and is registered by the Bureau of Apprenticeship and Training of the United States Department of Labor or to the employment procured and supervised through the Alabama Department of Education and approved by the Department of Labor.

Furthermore, minors whose parents are business owners are NOT exempt from Alabama Child Labor Law.

Working near alcoholic beverages

Minors under 21 are not allowed to serve or dispense alcoholic beverages in any kind of establishment where alcoholic beverages are sold, served, or dispensed.

However, minors aged 14 or 15 whose immediate family members are the owners or operators of such establishments can be employed, provided they do not serve, sell, or dispense alcoholic beverages. Also, minors aged 16 and above can work as busboys, dishwashers, janitors, cooks, hostesses, or seaters.

Record keeping and posting requirements

Each establishment that employs a minor under 19 must keep or display the following documents in a conspicuous place on-premises:

1. Printed notice called Time Records which states the maximum number of hours a minor is permitted to work each day during a workweek, break times, and start/end times,
2. Employee Information Form that includes the employee's personal information, date of hire, and school of attendance,
3. Child Labor Certificate (Class I or Class II Labor Certificates), and
4. Proof of Age, including a copy of a birth certificate, driver’s license, or an ID card.

The Department of Labor has the right to enter, without prior notice, a business establishment that employs minors to make sure that everything complies with the act.

Penalties for employers (Child labor laws)

If an employer violates or refuses to comply with the said regulations, the Department of Labor (DOL) may impose penalties of up to $100,000 or even imprisonment, depending on the severity of the violation.

Alabama hiring laws

Under federal law, each employer must comply with certain general provisions regarding hiring in Alabama. These provisions mainly apply to prohibited employment practices during hiring — such as discrimination.

For instance, under the Alabama Age Discrimination in Employment Act (AADEA), it is unlawful to discriminate against individuals aged 40 and older while hiring, compensating, training, licensing, and similar.

Interestingly, another statute allows employers to have a “voluntary veterans’ preference” over other applicants during the hiring process.

Furthermore, job applicants who have been charged with a misdemeanor criminal offense, a traffic violation, or a municipal ordinance violation have the right to “expunge records” — provided that:

• The charge is dismissed with prejudice,
• A grand jury has not billed the charge,
• The person proves innocence, and
• The charge was dismissed without prejudice more than 2 years ago, and the person has not been convicted of any other felony in the previous 2 years.

As soon as the charge is expunged — the job applicant is no longer required to disclose any information about the charge or its expurgation during the job application process.

Finally, people with disabilities or visual impairments in Alabama have an equal opportunity to be employed. However, this only applies to public services such as public schools, political subdivisions of the state, etc. — provided that the person's disability does not prevent their job performance.

Right to work law in Alabama

A “right-to-work” state is a state where employees are allowed to make decisions whether or not to join a labor union. No one can force an employee to join a labor union as a condition of employment. Alabama adopted a right-to-work statute in 1953.

Any labor organization, employer, supervisor, executive, or administrative employee in Alabama is not allowed to:

• Force an employee to join or refrain from joining any labor organization, association, union, group, or similar as a condition or continuation of employment,
• Force or threat of violence to person or property,
• Collect, receive, or demand a fee or sum of money from any person as a condition for employment or getting a work permit, and
• Forbid an individual to work, go on strike, or have the freedom of speech.

Even though municipal or state firefighters in Alabama have the right to join and participate in labor organizations, they are not allowed to strike against the state or any state municipality or be a member of an organization that asserts the right to strike.

If any person or labor organization violates any of the provisions stated above — a penalty of not more than $1,000 for each such violation will be imposed, or imprisonment at hard labor of not more than 12 months.

Alabama termination laws

Most US states, including Alabama, do not need a specific cause for dismissing an employee.

Under Alabama law, employees can be fired at any time and for no reason. This is called the “at-will doctrine”. Moreover, employees cannot file a suit for this kind of employment termination.

However, no employer can use this doctrine to fire someone based on race, age, ethnicity, etc.

If an employee is fired for one of the said reasons, this is called wrongful termination. In this case, the employee can sue the employer and eventually collect the compensation.

Moreover, an employee may choose to quit their job at any time for any reason without any losses, damages, penalties, or similar.

Alabama final paycheck

Alabama does not have labor and employment laws that dictate specific rules about the employee’s final paycheck. Consequently, according to federal law on last paycheck — employers are not required to give employees their final paycheck immediately.

However, this rule does not apply to sales representatives in Alabama. In that case, an employer must pay out any commissions to a sales representative within 30 days after the discharge, resignation, or expiration of a contract.

Any other concerns, such as unused paid leave or other benefits, are a matter of mutual agreement between the employer and employee.

Health insurance continuation in Alabama (COBRA)

Since Alabama does not have a law that protects full-time employees and their health benefits after the termination of employment, the federal COBRA law comes to their aid.

The Consolidated Omnibus Budget Reconciliation Act (COBRA) protects full-time employees who have terminated their employment due to job loss (voluntary or involuntary), death, transition between jobs, and similar. Said employees can keep their health insurance for another 18 to 36 months (depending on the case).

However, this only applies to businesses with 20 or more employees.

Occupational safety in Alabama

Since no state law governs workplace safety, federal regulations help private-sector employees in Alabama.

Therefore, the Occupational Safety and Health Administration (OSHA) in Alabama requires that each private-sector employer provide employees with safe working conditions free from hazards that can cause death or serious physical harm.

The authorities are allowed to enter any facility during regular working hours and inspect its devices, machines, working conditions, and similar to ensure that the environment is free from any hazards.

Moreover, any employee who believes there has been a safety violation in the workplace may send a written notice to the authorities and request an inspection. This act protects employees who file a complaint from disciplinary actions of any type.

If an employer violates any regulations from this act — a civil penalty of up to $70,000 for each violation may be imposed.

Here are the types of work hazards recognized by OSHA:

• Biological hazards — mold, pests, insects, etc.,
• Chemical and dust hazards — pesticides, asbestos, etc.,
• Physical hazards — noise, radiation, temperature extremes, etc.,
• Safety hazards — slips, trips, falls, etc.,
• Ergonomic hazards — repetition, lifting, awkward postures, etc., and

Psychosocial hazards — things that cause stress.

Miscellaneous Alabama labor laws

Certain labor laws do not belong to any specific group above, so we have placed them in the miscellaneous section.

The most significant include the following.

Alabama whistleblower laws

Alabama has statutes that encourage and shield public and private employees who come forward about illegal conduct.

Therefore, an employer cannot retaliate against an employee if the employee reports any fraudulent behavior inside an institution. The code states explicitly: “Employee not to be terminated solely for action to recover benefits nor for filing a notice of safety rule violation.”

Furthermore, no one is allowed to threaten, harass, or discriminate against a person who “blows the whistle” and notifies the authorities about wrongdoings inside an institution.

What's more, state employees are protected from discharging, transferring, or discriminating if the state employee reports any kind of violation of the law.

However, Alabama does not have a state False Claim Act, so a whistleblower can file a federal False Claim Act instead.

The federal False Claim Act imposes liability on individuals or organizations that make a fraudulent record or falsely bill the government. It also encourages employees to file “qui tam” actions — lawsuits filed by private citizens who have strong evidence against those who conspire to commit an offense against the government. A whistleblower can even receive a reward as an incentive to report fraudulent activities against the US government.

Alabama record keeping laws

Each employer is responsible for keeping certain records, books, and accounts for service contract holders, i.e., employees.

Therefore, service contracts must include the following:

1. Copies of each employee's contract,
2. Personal information, including the name and address of each service provider holder,
3. A list of the locations where service contracts are marketed, sold, or offered for sale, and
4. Recorded claims files.

The employer is required to retain all records for at least 3 years after the termination or expiration date of the contract.

Frequently asked questions about labor laws in Alabama

Throughout this guide, our goal was to provide all the necessary information about labor laws in Alabama. However, we have included an FAQ section to make this guide even more comprehensive.

Is it illegal to work 8 hours without a break in Alabama?

No. Regarding meal and rest breaks, the state of Alabama follows federal law. Under the Fair Labor Standards Act (FLSA), employers are not obligated to give employees breaks during work hours.

How many hours can you legally work in a day in Alabama?

In Alabama, there is no time limit for work hours. Neither the state of Alabama nor the federal law restricts the number of working hours an employee can have. Employees over 16 can work as many hours as they want.

What are the termination laws in Alabama?

In Alabama, there are no termination laws. This is because Alabama follows the at-will doctrine, and employees can be fired at any time without reason. Nonetheless, wrongful termination can occur if an employer fires an employee based on race, gender, age, ethnicity, etc.

How are employees protected in Alabama in the case of layoff?

In the case of a layoff, the employees in Alabama are covered by the Worker Adjustment and Retraining Notification (WARN) Act. Under the Alabama WARN Act, employees must receive a 60-day notice before being laid off.

Need a simple time clock for employees?

Clockify allows you to track time, attendance, billable rates, and costs with just a few clicks for free.

Your team can track work time personally via the web or mobile app, or you can set up a time clock kiosk from which employees can clock in and out.

Later, you can approve timesheets and time off, schedule shifts, run time card reports, and export everything for payroll (PDF, Excel, CSV, link, or send to QuickBooks).

Moreover, Clockify lets you set hourly rates for your employees and avoid unnecessary calculations once payroll comes. You can set rates for:

• Workspace,
• Members,
• Projects,
• Tasks, and
• Project members.

This functionality is quite helpful when abiding by labor laws, such as minimum wage laws in Alabama. 

Once the hourly rates are set, employees just have to track their work time, and their wages will be automatically calculated.

See all Clockify features

Get started for FREE

Conclusion/Disclaimer

We hope this Alabama labor law guide has been helpful. Please pay attention to the links provided, which will lead you to the official government websites and other relevant information.

Please note that this guide was written in June of 2024, so any changes in the labor laws that were included later than that may not be in this guide.

We strongly advise you to consult with the appropriate institutions or certified representatives before acting on legal matters.

Clockify is not responsible for any losses or risks incurred should this guide be used without further guidance from legal or tax advisors.