The minimum wage in Alabama is $7.25 an hour as of October 2026, the federal rate. The Alabama Department of Labor says the state doesn't have any laws governing wage and hour issues, so employers follow the federal Fair Labor Standards Act, including the $2.13 tipped cash wage and overtime after 40 hours a week.
That makes Alabama one of the simplest states on pay and one of the strictest on young workers. The Department's wage and hour sheet points every wage question to the U.S. Wage and Hour Division, but it adds that Alabama does have its own child labor laws and a Child Labor Division to enforce them. This page uses that sheet, the Department's child labor poster and the U.S. Department of Labor's tables, read in October 2026.
Alabama pay at a glance
| Pay item | Amount (as of October 2026) | Rule |
|---|---|---|
| Minimum wage | $7.25 an hour | Federal |
| Tipped cash wage | $2.13 an hour | Federal |
| Maximum tip credit | $5.12 an hour | Federal |
| Overtime | Time and a half after 40 hours a week | Federal |
If tips plus the $2.13 cash wage don't reach $7.25 for the hours worked, the employer must pay the difference. Anyone who receives more than $30 a month in tips counts as a tipped employee. If you pool tips, read my tip pooling guide first.
Who the federal law covers in Alabama
With no state law underneath, federal coverage decides who gets $7.25. The Fair Labor Standards Act covers enterprises with employees in interstate commerce and annual gross sales of more than $500,000, and it always covers schools, hospitals, health care facilities and public agencies. Individual employees are covered when their own job involves interstate commerce. In practice that reaches most jobs, so treat $7.25 as the Alabama floor.
Paydays, breaks and final pay
Here's what surprises people moving from other states. The U.S. Department of Labor's payday table lists Alabama as having no payday regulations, so state law doesn't set how often you pay. Alabama also has no state rule on adult meal or rest breaks, and federal law doesn't require them for workers aged 16 or older. Final paycheck timing isn't set by an Alabama wage law either. Your own written policy, applied consistently, is what employees will hold you to. My final paycheck guide shows what other states require.
Alabama's child labor rules
This is where Alabama law has real teeth. The Department's child labor poster sets rules that apply on top of federal law.
- Employers must get and display the right Child Labor Certificate for each location where minors under 18 work.
- Persons under 14 years of age shall not be employed.
- Minors aged 16, 17 and 18 who are enrolled in public or private school may not work after 10pm or before 5am on a night before a school day.
- Children of parents who own their own business are not exempt from Alabama child labor law.
- Employers must keep an Employee Information Form, proof of age and time records showing hours worked each day, start and end times and break times for each employee aged 18 and younger.
The poster also says the Department of Labor can enter any business, without a warrant or notice, for routine inspections.
Young workers and alcohol
Restaurants and bars need to know the alcohol rules on the poster. Servers of alcoholic drinks for consumption on the premises must be 21, or 18 if the licensee is RVP certified. Workers aged 16 and older may be employed in those places as busboys, janitors, dishwashers, cooks, hostesses or seaters. Minors aged 14 and 15 shall not work in any establishment that serves alcohol for consumption on the premises, although immediate family members of the owner may, provided they don't serve, sell, dispense or handle alcohol.
Alabama next to its neighbours
| State | Minimum wage (as of October 2026) |
|---|---|
| Alabama | No state law, $7.25 federal |
| Mississippi | No state law, $7.25 federal |
| Tennessee | No state law, $7.25 federal |
| Georgia | $5.15 state, $7.25 federal for covered jobs |
Alabama, Mississippi and Tennessee are three of the five states with no minimum wage law at all, according to the U.S. Department of Labor's tipped table footnote. Georgia has a law with a lower figure, but federal coverage lifts its workers to $7.25 too. My Georgia minimum wage guide explains how that works.
Where Alabama employers get answers
For minimum wage, overtime and tipped pay, the Alabama Department of Labor sends employers and workers to the U.S. Wage and Hour Division, which has offices in Montgomery, Birmingham and Mobile. For child labor certificates, posters and inspections, it's the Alabama Department of Labor itself.
One practical point: because Alabama law is silent on paydays and final pay, the clearest protection for both sides is a written pay policy that states the payday, the pay period and when a leaver gets their last check.
Want AI doing the heavy lifting in your marketing?
I build the systems that handle the boring 80 percent, so you get your week back. Done properly, with the human kept in.
My verdict
Alabama's minimum wage is the federal $7.25, and that won't change unless federal law does or Alabama passes a law of its own. If you employ anyone under 18, the state's child labor rules are where your compliance effort should go: certificates at every location, school-night hours and records down to break times.
Frequently asked questions
What is the minimum wage in Alabama?
It's $7.25 an hour as of October 2026, the federal rate, because Alabama has no state wage and hour laws.
Does Alabama have a state minimum wage law?
No. The Alabama Department of Labor says the state has no laws governing wage and hour issues.
What is the tipped minimum wage in Alabama?
It's $2.13 an hour in cash under the federal rule, with tips bringing the total to at least $7.25.
How often must Alabama employers pay staff?
The U.S. Department of Labor's payday table lists no payday regulations for Alabama.
Does Alabama require breaks?
There's no Alabama rule on adult meal or rest breaks, and federal law doesn't require them.
How old do you have to be to work in Alabama?
Persons under 14 shall not be employed, and employers need a Child Labor Certificate for each location where minors under 18 work.
Can 16-year-olds work late in Alabama?
Minors aged 16 to 18 enrolled in school may not work after 10pm or before 5am on a night before a school day.
Who handles minimum wage complaints in Alabama?
The U.S. Wage and Hour Division, because Alabama has no state wage and hour law.
