Alabama does not set a minimum wage above the federal level, so employers covered by the Fair Labor Standards Act must pay the federal minimum of $7.25 per hour. Alabama has no state minimum wage law, so the federal rate of $7.25 applies to employers covered by the FLSA.
Wage rates for 2026
Basic minimum wage
$7.25 per hour
Tip credit
Yes Allowed
Tipped cash wage
$2.13 per hour
Youth / training wage
Federal youth wage of $4.25/hour applies to workers under 20 for their first 90 consecutive calendar days.
Overtime & premium pay
| Type | Requirement |
|---|---|
| Weekly | 40 hours (1.5x) |
Alabama follows the federal Fair Labor Standards Act for overtime.
Related labor laws in Alabama
Paid sick leave
Not required by state law.
Overtime
Overtime is required after 40 hours (1.5x) in a week. Alabama follows the federal Fair Labor Standards Act for overtime.
Pay frequency & final paycheck
Rules for how often employees must be paid and when a final paycheck is due vary. Confirm the current requirements with the U.S. Department of Labor.