The Alabama Labor
Law Guide

Minimum wage is the lowest hourly pay rate that employers are legally obligated to pay nonexempt employees. The federal minimum wage is a wage baseline, but different states, cities, and regions can adopt their own rates. Alabama does not have its own state minimum wage law so employers should follow the federal law if they are covered by the FLSA:

$7.25 per hour for most employees (as of 2024)

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Tipped minimum wage is the lowest hourly pay rate employers are legally obligated to pay employees who earn a significant portion of their income through tips. 

Tipped workers in Alabama must be paid the federally required minimum hourly rate of $2.13 per hour, and that amount plus tips must add up to the minimum wage of $7.25 per hour (as of 2024).

Alabama does not have its own state overtime laws. It follows the federal overtime requirements. 

Non-exempt employees who work over 40 hours per standard workweek are entitled to overtime pay. Most nonexempt employees receive overtime pay at 1.5 times their regular rate of pay for all hours over 40 in a workweek.

Alabama wage and hour laws generally do not require employers to provide meal periods or breaks to employees 16 years of age and over; thus, the federal rule applies. 

On the other hand, if an employer chooses to do so, breaks, usually lasting less than 20 minutes, must be paid. Meal or lunch periods (typically 30 minutes or more) do not need to be paid so long as the employee is free to do as they wish during the meal or lunch period and is completely relieved of all duties. 

Alabama requires employers to provide a 30- minute meal or rest period prior to completion of 5 hours work for minors ages 14 or 15  years of age.

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Vacation leave
Alabama does not require employers to provide paid time off to their employees. The employer can choose to offer vacation leave at their discretion. 

Paid Sick Leave
Alabama does not have any state-paid sick leave laws. 

Holidays
As of January 2024, Alabama law doesn’t require private employers to provide paid or unpaid holiday leave. 

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Permits needed for child labor

Alabama employers who employ minors under the age of 18 must obtain the appropriate Child Labor Certificate(s) for each location where the minor is employed. 

• A Class I Child Labor Certificate is required for each location where the employer wishes to employ minors who are 14 and 15 years old 

• A Class II Child Labor Certificate is required for each location where the employer wishes to employ minors who are 16 and 17 years old

Every employer must also keep an Employee Information Form, Proof of Age, and Time Records that include the number of hours and break times minors under the age of 18 have worked. 

Here is what is acceptable for Proof of Age:

• Birth certificate copy

• Driver’s license

• Identification cards issued by federal, state, or local government agencies provided the ID card includes the employee’s name and date of birth 

Employers must obtain an exemption if they wish to employ a minor ages 16-18 to work between 10:00 pm and 5:00 am on the night preceding a school day.

Work time and break time laws depend on the minor’s age 

For minors 14-15 when school is in session:

• Cannot work during school hours unless they have completed the course of study required for secondary schools and received a recommendation from the local superintendent of education and approval by a child labor inspector.

• Cannot work:

  • More than 3 hours on any school day

  • More than 8 hours on a non-school day

  • More than six days in a week

  • More than 18 hours in a school week

  • Before 7 AM or after 7 PM on any day of the week

For minors 14-15 when school is not in session:

• Minors cannot work:

  • More than 8 hours per day

  • More than six days per week

  • More than 40 hours per week

  • Before 7 AM or after 9 PM each day 

Break laws for minors 14-15:
A documented 30-minute break is required if they continuously work more than 5 hours 

For minors 16-18 who are enrolled in any primary or secondary school when school is in session:
Cannot work between 10:00 pm and 5:00 am on any night before a school day (exemptions may be granted by the county or city superintendent of schools).

Hiring
Alabama’s hiring laws aim to prevent discrimination and other prohibited employment practices that include:

• Age discrimination

• Equal pay 

• Veterans’ preference

Firing
Alabama supports “at-will” employment laws. All Alabama employers have the right to terminate employees at will for nearly any reason and no reason at all, as long as it doesn’t violate the law.