Alabama Minimum Wage (2025)

The Alabama minimum wage for 2025 defaults to the federal minimum of $7.25 per hour as Alabama does not have its own minimum wage law. Employers in Alabama who are subject to the Fair Labor Standards Act (FLSA) must comply with federal minimum wage requirements.

For tipped employees in Alabama, the minimum cash wage is $2.13 per hour. Employers may take a tip credit, but must ensure tipped employees earn at least the full minimum wage of None when direct wages and tips are combined. Federal tipped minimum applies. Employers must ensure total hourly earnings (including tips) equal at least $7.25. Understanding the tipped minimum wage is essential for both employers and workers in the service industry.

Alabama allows a youth minimum wage of $4.25 per hour under specific conditions. Federal youth minimum wage applies to workers under 20 during the first 90 consecutive days of employment. This reduced training wage helps employers create entry-level opportunities while ensuring young workers receive fair compensation during their initial employment period.

Important considerations for Alabama's minimum wage law include: No state minimum wage law. Employers subject to the FLSA must pay the federal minimum wage of $7.25/hour. Employers should consult with legal counsel to ensure full compliance with these provisions.

For the most current and authoritative information on Alabama's minimum wage laws and regulations, employers and workers should consult the official Alabama labor department website or legal counsel. Understanding your rights and obligations regarding minimum wage, tipped wages, and youth employment is essential for both employers and employees.