Alabama — Wage & Hour

Alabama does not have any state laws governing wage and hour issues. Employers must follow federal guidelines set forth by the U.S. Wage and Hour Division of the U.S. Department of Labor, which administers the Fair Labor Standards Act (FLSA). Topics covered exclusively by federal law include minimum wage, overtime pay, hours worked, recordkeeping, wage deductions, and related matters.

Source: Alabama Department of Labor, Wage and Hour Info

Alabama law prohibits counties, municipalities, and other political subdivisions from enacting ordinances that require employers to provide wages or employment benefits not mandated by state or federal law. This preemption statute, enacted in 2016 in response to Birmingham's attempted $10.10 minimum wage ordinance, means no local jurisdiction in Alabama can establish a minimum wage above the federal $7.25 rate. Any local ordinance inconsistent with this prohibition is void.

Source: Ala. Code § 25-7-41

Because Alabama has no state wage and hour law, employers in Alabama must comply with the federal Fair Labor Standards Act (FLSA) for minimum wage, overtime, exemptions, and recordkeeping.

Minimum wage. Covered nonexempt employees must be paid at least $7.25 per hour under 29 U.S.C. § 206(a)(1). This rate has been in effect since July 24, 2009. The FLSA covers enterprises with at least $500,000 in annual gross volume of business engaged in interstate commerce, as well as individual employees engaged in interstate commerce or production of goods for interstate commerce regardless of the employer's size. Hospitals, schools, and government agencies are covered regardless of dollar volume.

Overtime. Covered nonexempt employees must receive overtime pay at a rate of at least one and one-half times their regular rate of pay for all hours worked over 40 in a workweek under 29 U.S.C. § 207(a)(1). A workweek is any fixed and regularly recurring period of 168 hours (seven consecutive 24-hour periods). The FLSA does not require overtime pay for work on weekends, holidays, or regular days of rest unless those hours exceed 40 in the workweek. The FLSA does not limit the number of hours an employee age 16 or older may work in a day or week.

White-collar exemptions. Executive, administrative, and professional employees are exempt from both minimum wage and overtime requirements under 29 U.S.C. § 213(a)(1) if they meet three tests: (1) they are paid on a salary basis (a predetermined fixed amount not subject to reduction for quality or quantity of work); (2) they earn at least $684 per week ($35,568 annually); and (3) their primary duties meet the specific duties test for the exemption category under 29 C.F.R. Part 541. The $684 weekly salary threshold has been in effect since January 1, 2020, following the 2019 final rule; a 2024 rule that would have raised it was vacated by a federal district court in November 2024, leaving the 2019 threshold operative for 2026.

Recordkeeping. Employers must keep records of hours worked and wages paid for each nonexempt employee under 29 C.F.R. § 516. No specific form is required, but records must include the employee's full name, Social Security number, address, birth date (if under 19), sex and occupation, time and day of week when the workweek begins, hours worked each day and each workweek, total daily or weekly straight-time earnings, regular hourly pay rate, total overtime earnings for the workweek, additions to or deductions from wages, total wages paid each pay period, and date of payment and pay period covered.

Tipped employees. Employers may pay tipped employees (those who customarily and regularly receive more than $30 per month in tips) a cash wage of at least $2.13 per hour and take a tip credit of up to $5.12 per hour, provided the employee's tips bring total compensation to at least $7.25 per hour. If tips fall short, the employer must make up the difference. This provision is found at 29 U.S.C. § 203(m).

Alabama employers should consult the U.S. Department of Labor's Wage and Hour Division for interpretive guidance, including opinion letters, fact sheets, and Field Operations Handbook provisions that explain how these statutory and regulatory provisions apply to specific situations. Because Alabama has preempted local minimum wage ordinances (see Ala. Code § 25-7-41), no city or county in Alabama may impose wage or hour requirements beyond the federal FLSA floor.

Source: 29 U.S.C. § 206 Source: 29 U.S.C. § 207) Source: 29 U.S.C. § 213 Source: DOL FLSA Overview

Alabama law requires employers to provide a documented meal or rest break of at least 30 minutes to minors who are 14 or 15 years old when they work more than five continuous hours. The statute does not prescribe when during the shift the break must occur, nor does it distinguish between a meal break and a rest break — either type satisfies the requirement so long as it lasts at least 30 minutes. Breaks shorter than 30 minutes do not interrupt the five-hour window; if a minor works six hours with only a 20-minute break, the employer has violated the statute because the minor worked more than five continuous hours without a qualifying 30-minute break.

Documentation requirement. The employer must document the break. Alabama Code § 25-8-38 separately requires employers to maintain time records for employees under 19 years of age that state "the number of hours worked each day, starting and ending times, and break times." These records must be kept on the premises (or at a centralized location) for at least one year and available on-site for the 60 days preceding the last work period. The documentation requirement ensures that the Department of Labor can verify compliance during inspections, which the department is authorized to conduct without prior notice.

Scope and exemptions. The 30-minute break requirement applies only to minors aged 14 and 15. Alabama's child labor law imposes no meal or rest break requirement for minors aged 16 or 17, nor for employees aged 18 and older. Alabama does not have a general meal or rest break statute for adult employees; employers must follow federal FLSA guidance, which does not mandate breaks but requires that short breaks (5–20 minutes) be paid if offered. For 14- and 15-year-old employees, the 30-minute break is unpaid, provided the employee is completely relieved of work duties during the break.

Penalties. Employers who fail to provide the required 30-minute break to a 14- or 15-year-old employee may face civil penalties assessed by the Alabama Department of Labor, ranging from $300 to $5,000 per violation, as well as criminal penalties: a Class C misdemeanor for a first offense or a Class B misdemeanor for repeat violations. The department may assess separate penalties for each affected minor and multiple penalties per minor if more than one provision of the child labor law was violated. Because the break requirement is part of Alabama's child labor law (Title 25, Chapter 8, Article 3), violations are subject to the same enforcement mechanisms as other child labor violations, including unannounced inspections and certificate revocation.

Relation to federal law. The federal Fair Labor Standards Act (FLSA) does not mandate meal or rest breaks for any age group, including minors, though it does regulate the hours and occupations in which minors may work under 29 U.S.C. § 203(l) and 29 C.F.R. Part 570. Alabama's 30-minute break requirement for 14- and 15-year-olds is therefore a state-specific protection that exceeds the federal floor. Employers of minors in Alabama must comply with both the FLSA's occupation and hour restrictions and Alabama's break, recordkeeping, and certification requirements.

Source: Ala. Code § 25-8-42 Source: Ala. Code § 25-8-38

Alabama has no state statute or regulation that establishes a deadline by which an employer must pay final wages to a separated employee. The Alabama Department of Labor expressly refers wage and hour matters—including minimum wage, overtime pay, hours worked, recordkeeping, and deductions—to the federal U.S. Department of Labor's Wage and Hour Division, which administers the Fair Labor Standards Act (FLSA). This means Alabama employers follow federal timing rules for final paychecks.

Federal FLSA rule. Under federal law, employers are not required to give former employees their final paycheck immediately. The FLSA requires that wages earned during a pay period be paid on the regular payday for that pay period, but it imposes no separate accelerated deadline for final wages. The DOL's Handy Reference Guide to the FLSA states: "Wages required by the FLSA are due on the regular payday for the pay period covered." In practice, this means an Alabama employer must pay all wages earned through the employee's last day of work by the next regular payday following the pay period in which the employee separated—the same payday that would have applied had the employee remained employed. Federal law draws no distinction between voluntary resignation and involuntary termination with respect to final pay timing.

Scope. Because Alabama has no state wage-payment statute, the FLSA regular-payday rule governs final pay timing for all covered employees in Alabama, regardless of whether the separation was a resignation, a termination for cause, a layoff, or a reduction in force. The FLSA covers enterprises with at least $500,000 in annual gross volume of business engaged in interstate commerce, as well as individual employees engaged in interstate commerce or production of goods for interstate commerce, and hospitals, schools, and government agencies regardless of revenue. Employees not covered by the FLSA may pursue unpaid-wage claims under Alabama common law or breach-of-contract theories, but no Alabama statute accelerates the final-pay deadline for any category of separated employee.

Enforcement. If an employer fails to pay earned wages by the next regular payday, the employee may file a complaint with the U.S. Department of Labor's Wage and Hour Division, which can supervise payment of back wages, or the employee may file a private lawsuit under the FLSA for back pay, an equal amount in liquidated damages, attorney's fees, and court costs. The Alabama Department of Labor will also investigate wage complaints, but it relies on the FLSA substantive standard because Alabama has no parallel state statute.

Contrast with other states. Many states impose accelerated final-pay deadlines—some as short as the same day for involuntary terminations or within 72 hours for voluntary resignations. Alabama's reliance on the federal regular-payday rule gives employers more time than most state statutes allow, but it also means that an employer who misses the next regular payday after separation risks the same FLSA penalties (back wages and liquidated damages) as an employer who misses a regular payday during ongoing employment.

Source: Alabama Department of Labor, Wage and Hour Info Source: U.S. DOL, Last Paycheck Source: U.S. DOL, Handy Reference Guide to the FLSA

Alabama's child labor law, codified in Ala. Code §§ 25-8-32 through 25-8-61, regulates the employment of minors under 18 years old through minimum-age rules, work-hour restrictions, occupation prohibitions, and mandatory employer certification. The statute operates alongside the federal Fair Labor Standards Act (FLSA); where state and federal rules conflict, the law providing greater protection to the minor applies.

Minimum age for employment. No individual under 16 years old may be employed except in agricultural service and except as otherwise provided in the child labor law. Ala. Code § 25-8-33(a) establishes this general prohibition. The statute carves out two narrow exceptions: (1) individuals aged 14 or 15 enrolled in a youth pre-apprenticeship program or youth industry-registry apprenticeship program registered by the Alabama Office of Apprenticeship, and (2) individuals aged 14 or 15 whose employment is procured and supervised through the Alabama Department of Education and approved by the Alabama Department of Labor. Outside these exceptions and agricultural work, no one under 14 may be employed in Alabama for any occupation.

Work-hour restrictions — ages 14 and 15. Minors aged 14 or 15 face strict daily and weekly hour limits that vary depending on whether school is in session. Under Ala. Code § 25-8-36(a), when school is not in session (summer vacation and other breaks), a 14- or 15-year-old may work no more than six days in any week, no more than 40 hours in any week, no more than eight hours in any day, and not before 7:00 a.m. or after 9:00 p.m. When school is in session, the same statute imposes tighter limits: no more than 18 hours in any week, no more than three hours on any school day, and not before 7:00 a.m. or after 7:00 p.m. The statute defines "school day" by reference to the public-school calendar in the county where the minor attends school. These limits apply cumulatively — an employer who allows a 14-year-old to work four hours on a school day violates the three-hour daily cap even if the weekly total stays under 18 hours.

Work-hour restrictions — ages 16 and 17. Alabama imposes a single nighttime restriction for 16- and 17-year-olds who are enrolled in school: they may not work between 10:00 p.m. and 5:00 a.m. on any night preceding a school day. Ala. Code § 25-8-36(b). Alabama law does not cap daily or weekly hours for this age group, nor does it impose any hour restrictions on 16- or 17-year-olds who are not enrolled in school. Once a minor turns 18, Alabama's child labor hour restrictions no longer apply.

Prohibited occupations — all minors under 18. Ala. Code § 25-8-43(a) lists 26 categories of occupations and workplaces from which all individuals under 18 are barred. The prohibitions include (among others): employment in or about any mine, coke oven, or quarry; work in wrecking, demolition, excavation exceeding four feet in depth, roofing, or scaffolding; operating power-driven hoisting apparatus (except unattended automatic passenger elevators), bakery machines, paper-product machines, woodworking machines, or metal-forming/cutting/punching/shearing machines; work involving explosives, radioactive substances, or asbestos; and slaughtering, butchering, or meat-cutting. The statute also grants the Alabama Department of Labor discretionary authority to declare additional occupations dangerous to minors' life, limb, health, or morals. Section 25-8-43(b) exempts 16- and 17-year-olds enrolled in work-study, student-learner, cooperative-education, youth registered apprentice, or similar programs registered by the Alabama Office of Apprenticeship, or whose employment is procured through the Alabama Department of Education and approved by the Department of Labor.

Prohibited occupations — additional restrictions for minors under 16. Minors under 16 face an additional layer of occupation prohibitions under Ala. Code § 25-8-35. They may not be employed in any capacity in manufacturing or mechanical establishments, mills, factories, canneries, workshops, or places where goods are manufactured or prepared for manufacture. They are also barred from adjusting any belt or assisting in oiling or cleaning machinery in motion, operating or assisting in operating circular or band saws, wood shapers, wood jointers, planers, sandpaper or wood-polishing machinery, emery or polishing wheels, or stamping machines in confectioneries; from employment in any capacity in preparing composition in which dangerous or poisonous acids are used, or in the manufacture or packing of paints, colors, or white or red lead. These restrictions are cumulative with the under-18 prohibitions.

Child Labor Certificate requirement — employer obligation. Every employer (individual, entity, franchise, corporation, or division) that wishes to employ any minor aged 14 or 15 in any occupation other than agricultural service must obtain a Class I Child Labor Certificate from the Alabama Department of Labor for each location where 14- or 15-year-olds will work. Ala. Code § 25-8-45(b). Employers that wish to employ any minor aged 16 or 17 in any occupation other than agricultural service must obtain a Class II Child Labor Certificate for each location where 16- or 17-year-olds will work. Ala. Code § 25-8-45(e). The fee for either certificate is $15, and certificates are issued annually. The certificate must be posted in a public and conspicuous location at all times. An employer that employs a minor aged 14 through 17 without the proper certificate must pay a $50 penalty and then obtain the certificate. As of June 1, 2024 (Act 2024-352), the prior requirement that 14- and 15-year-olds obtain an individual "Eligibility to Work" form from the Alabama Department of Labor was eliminated; instead, employers must procure and keep on file a complete list of all 14- and 15-year-olds employed, available for inspection by enforcement officials.

Recordkeeping and posting. Employers must keep on the premises a completed Employee Information Form and proof of age (birth certificate, driver's license, or government-issued ID showing name and date of birth) for each employee under 19, and must maintain time records (showing hours worked each day, starting and ending times, and break times) in electronic or photostatic form for the 60 days preceding the last work period. Ala. Code § 25-8-38(b). Employers must also post a printed notice stating the maximum hours minors under 19 may work each day, as set out in § 25-8-36.

Penalties. The Alabama Department of Labor may impose a civil penalty of $300 for violations of the hour-restriction, recordkeeping, certificate, or meal-break provisions. Ala. Code § 25-8-59(b). The department may impose a civil penalty of $1,000 to $5,000 for employing a minor under 16 in violation of the general age prohibition (§ 25-8-33) or in a prohibited occupation under § 25-8-35 or § 25-8-43(a). The department may assess a separate penalty for each affected minor and may assess multiple penalties per minor if multiple statutory provisions were violated. The department has the right to enter any business establishment without prior notice or warrant to conduct routine inspections.

Source: Ala. Code § 25-8-33 Source: Ala. Code § 25-8-35 Source: Ala. Code § 25-8-36 Source: Ala. Code § 25-8-38 Source: Ala. Code § 25-8-43 Source: Ala. Code § 25-8-45 Source: Ala. Code § 25-8-59