Alabama Labor Law Guide 2026: Wages, Overtime, Breaks, and Child Labor
Alabama labor laws for employers in 2026: federal $7.25 minimum wage and overtime, no state break or final pay statute, the Child Labor Law with employer certificates and hour limits for minors, and E-Verify requirements.
Alabama has almost no state wage and hour code. There is no minimum wage law, no overtime statute, no break requirement, and no final paycheck deadline, so federal law does nearly all the work. The Alabama Department of Labor's own guidance confirms it has no state wage-hour laws and refers pay disputes to the US Department of Labor. What Alabama does regulate closely is the employment of minors: its Child Labor Law requires employer certificates, sets hour limits, and is enforced through inspections and fines.
- Alabama has no state minimum wage; the federal $7.25 rate applies, and a 2016 state law blocks cities such as Birmingham from setting a higher one
- Overtime, exemptions, and record-keeping are governed entirely by the federal Fair Labor Standards Act
- Adults have no break entitlement; minors under 16 must get a 30-minute break when working more than 5 continuous hours
- Employers must buy a Child Labor Certificate for each location that employs anyone under 18 and keep proof of age and time records on site
- There is no state final paycheck law, so the employer's regular payday governs, and vacation payout depends on policy
Minimum Wage in Alabama
Alabama has no state minimum wage. Employers covered by the FLSA pay $7.25 per hour and may pay tipped employees a $2.13 cash wage with a $5.12 tip credit. In 2016, after Birmingham passed a $10.10 city minimum wage, the legislature enacted a preemption law that voids local wage and benefit mandates, so the federal rate applies everywhere in the state.
The Alabama minimum wage guide covers the preemption history, FLSA coverage for small employers, and how Alabama compares with neighboring states.
Overtime Rules
Alabama has no overtime statute. Non-exempt employees earn 1.5 times their regular rate after 40 hours in a workweek under the FLSA. There is no daily overtime and no state salary threshold; the federal $684 per week figure applies. Complaints about unpaid overtime go to the federal Wage and Hour Division's Birmingham office.
Worked example: 45 hours at $7.25 pays $290.00 for the first 40 hours plus $54.38 for 5 overtime hours at $10.875, for $344.38 gross. Use the overtime calculator for other rates and see the overtime pay laws in the US guide for the regular-rate rules.
One Alabama-specific point for payroll: the state's overtime income tax exemption, which excluded overtime pay from state income tax for hourly employees from 2024, expired on June 30, 2025. Employers should confirm the current treatment with the Alabama Department of Revenue rather than assume the exemption still applies.
Meal and Rest Breaks
Alabama does not require meal or rest breaks for employees 16 and older. Federal rules apply to breaks employers choose to give: short breaks are paid, and a 30-minute duty-free meal period may be unpaid.
| Break type | Requirement | Applies to |
|---|---|---|
| Meal break | Not required by state law | Employees 16 and older |
| Rest break | Not required by state law | Employees 16 and older |
| Minor's break | 30 minutes when working more than 5 continuous hours | Employees 14 and 15 |
| Lactation | Federal PUMP Act break time and private space | All covered employers |
The rest and meal break laws by state guide and the break time calculator help set a policy that stays consistent across a multi-state workforce.
Paid Sick Leave and Other Leave
Alabama has no paid sick leave law and preempts local mandates. Leave rights come from federal law and a short list of state statutes.
| Leave type | Alabama rule |
|---|---|
| Paid sick leave | Not required |
| Family and medical leave | Federal FMLA only |
| Jury duty | Full-time employees must be paid their usual compensation for jury service, less the jury fee, and may not be fired for serving |
| Voting | Up to 1 hour of unpaid leave to vote unless the employee's shift starts 2 hours after polls open or ends 1 hour before they close |
| Military | Federal USERRA plus state protection for National Guard members |
| Adoption leave | Employers with 50 or more employees that offer maternity leave must offer equivalent leave for adoption (Alabama Adoption Promotion Act) |
Alabama's paid jury duty rule is one of the few paid-leave mandates in the state. See jury duty laws in the US and paid sick leave laws in the US.
PTO Payout and Final Paychecks
Alabama has no statute setting a final paycheck deadline for private employers. Employers pay final wages on the next regular payday as a matter of practice and to avoid an FLSA claim for unpaid wages. There is also no state rule on pay frequency, so the employer's established schedule controls.
Vacation and PTO payout is governed entirely by the employer's written policy. With no state wage payment statute, a policy that says unused PTO is forfeited at separation is enforceable, and silence leaves the question to contract principles. Our PTO payout laws by state guide lists Alabama in the "not required" group.
Exempt vs Non-Exempt Employees
Alabama applies the federal exemption tests with no state overlay. Exempt status requires a salary of at least $684 per week and exempt executive, administrative, professional, computer, or outside sales duties. Our exempt vs non-exempt employees guide and the FLSA exemption flowchart cover the analysis for common roles such as contact center supervisors and shift leads.
Child Labor Rules
The Alabama Child Labor Law is the state's main employment statute. The Department of Labor requires employers to obtain a Child Labor Certificate for each location: a Class I certificate for 14 and 15 year olds and a Class II certificate for 16 and 17 year olds, at $15 per business location, posted in public view. Employers must keep an Employee Information Form, proof of age, and time records "showing the number of hours worked each day" with start, end, and break times for every employee under 18. Minors no longer need a school-issued work permit; the employer certificate and an Eligibility to Work form replace it.
| Age group | School in session | School not in session | Hours of day | Other rules |
|---|---|---|---|---|
| 14 and 15 | 3 hours a day, 18 hours a week | 8 hours a day, 40 hours a week | 7 AM to 7 PM; until 9 PM June 1 through Labor Day | 30-minute break after more than 5 continuous hours; no work during school hours |
| 16 and 17 | No daily or weekly cap | No cap | No work 10 PM to 5 AM before a school day while enrolled in school | Barred from hazardous occupations |
| Under 14 | Not permitted except newspaper delivery, entertainment, and family agricultural work |
The Department inspects worksites and fines employers per violation; the 2022 investigations of automotive suppliers show it is active. See child labor laws in the US for the federal hazardous occupation orders.
How Alabama Compares With Neighboring States
Alabama, Mississippi, Tennessee, and Georgia all sit at the federal $7.25 minimum wage and all defer to federal overtime rules, but they diverge on the details that matter to a multi-state employer. Tennessee requires a 30-minute meal break for 6-hour shifts and sets a final pay deadline of the next payday or 21 days; Georgia has a $5.15 state rate that federal law overrides and no break law; Florida has a $14.00 minimum wage rising to $15.00 on September 30, 2026. Alabama is the only one of the four with no wage payment statute at all, which puts the entire burden on the employer's written policies and the FLSA.
Other Alabama Employment Rules
- E-Verify. All employers must use E-Verify for new hires under the Beason-Hammon Alabama Taxpayer and Citizen Protection Act.
- Local preemption. Cities and counties cannot set wages, benefits, leave, or scheduling rules for private employers.
- Drug testing. Employers that adopt a drug-free workplace program under state law can earn a 5 percent workers' compensation premium discount.
- Firearms in vehicles. Employees with a concealed carry permit may keep firearms in locked vehicles in employer parking lots.
- Non-compete agreements. Enforceable within limits set by the 2016 Alabama Restrictive Covenants Act, with a presumption that 2 years is reasonable.
- Pay stubs. No state law requires itemized pay statements, but federal record-keeping applies.
Hiring, Termination, and Record-Keeping
Alabama is an at-will state with few statutory exceptions. The state has no general anti-discrimination law for private employers and no state human rights commission; discrimination claims go to the EEOC under federal law, which covers employers with 15 or more employees. Alabama's Age Discrimination in Employment Act covers employers with 20 or more employees.
Federal law requires payroll records showing hours worked and wages paid for at least 3 years, and the Child Labor Law requires daily time records for minors on site. Post the Alabama Child Labor Certificate, the state unemployment and workers' compensation notices, and the federal posters. A time card calculator and a written timekeeping policy provide the daily start, end, and break record the Department asks for during a child labor inspection.
Frequently Asked Questions
Is Alabama an at-will state? Yes. Alabama has one of the strongest at-will doctrines in the country, limited by federal anti-discrimination law and a few state statutes.
Does Alabama require lunch breaks? Not for employees 16 and older. 14 and 15 year olds must get a 30-minute break when working more than 5 continuous hours.
When is the final paycheck due in Alabama? Alabama has no final paycheck statute. Employers pay on the next regular payday.
Does Alabama have paid sick leave? No. There is no state mandate, and local governments are preempted.
How many hours can a minor work in Alabama? 14 and 15 year olds can work 3 hours on a school day and 18 in a school week, or 8 hours a day and 40 a week when school is out. 16 and 17 year olds have no hour cap but cannot work 10 PM to 5 AM before a school day.
Does Alabama have a state minimum wage? No. The federal $7.25 rate applies statewide.
Do Alabama employers need a permit to hire minors? Yes. Employers need a Child Labor Certificate for each location employing anyone under 18, at $15 per location.
Does Alabama pay out unused vacation? Only if the employer's policy provides for it.
Sources
- Alabama Department of Labor: Child Labor
- Alabama Department of Labor: Child Labor Law Poster (PDF)
- Alabama Department of Labor: Eligibility to Work and certificate guidance (Alabama Retail Association summary)
- US Department of Labor: State Minimum Wage Laws
- US Department of Labor: State Payday Requirements
Reviewed September 2026
Laws change through legislation and agency guidance. The jury duty pay, voting leave, adoption leave, E-Verify, drug-free workplace, and overtime tax rules above are stated from general knowledge of Alabama statutes and should be confirmed with the Alabama Department of Labor or the Department of Revenue before you rely on them.
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