Alabama Minimum Wage: Current Rate & Scheduled Increases

The Fair Labor Standards Act (FLSA), 29 U.S.C. § 201 et seq., establishes the federal minimum wage at $7.25 per hour, effective since July 24, 2009. This applies to employers with annual gross revenue of at least $500,000 and to virtually all employees engaged in interstate commerce or employed by enterprises engaged in commerce. The FLSA covers most full-time and part-time employees in the private sector and public agencies.

The law prohibits employers from paying covered employees less than the minimum wage for any hours worked, including compensatory time, training periods, and on-call time in certain circumstances. Employers must maintain accurate records of hours worked and wages paid. Violations carry civil penalties up to $10,000 per violation, plus liability for unpaid wages plus an equal amount in liquidated damages (double damages), and potential criminal penalties for willful violations.

The U.S. Department of Labor (DOL) Wage and Hour Division enforces the FLSA nationwide. Employees may file complaints with the WHD, which investigates and can recover unpaid wages. The statute of limitations is two years for non-willful violations and three years for willful violations. Alabama employers have no exemptions from the FLSA beyond those allowed federally.

Alabama does not have a state-specific minimum wage statute. Instead, Alabama employers are bound entirely by the federal minimum wage established under the Fair Labor Standards Act (FLSA), 29 U.S.C. § 206, which sets the floor at $7.25 per hour. This means Alabama's minimum wage law is weaker than states that have enacted higher state minimum wages; Alabama provides no enhanced protection beyond the federal baseline.

Because Alabama has no independent state minimum wage law, state-level wage enforcement is extremely limited. The primary recourse for employees in Alabama is to file complaints with the federal Department of Labor Wage and Hour Division. Alabama has not enacted any alternative state wage and hour statutes that apply to employers not covered by the FLSA, such as small employers with fewer than two employees engaged in commerce.

All employers in Alabama, regardless of size or industry (with only narrow FLSA exemptions like certain family businesses), must comply with the $7.25 federal minimum wage. Employers cannot pay less based on location, business model, or any state exemption. Alabama does not offer state-specific remedies, wage protections, or enhanced penalties for minimum wage violations; these are enforced solely at the federal level by the DOL.

This makes Alabama one of the least protective states for minimum wage enforcement. Employees have no state administrative agency to turn to for wage claims and must pursue federal channels. Employers in Alabama benefit from this light regulatory environment compared to states with their own minimum wage agencies and enhanced penalties.

The FLSA contains narrow exceptions to minimum wage requirements that apply in Alabama. Employees under age 20 may be paid $4.25 per hour for the first 90 consecutive calendar days of employment. Student learners may be paid 75% of minimum wage (approximately $5.44) with a certificate from the Department of Labor under limited circumstances. Employees with disabilities may be paid less than minimum wage with special DOL certification (Special Minimum Wage Certificate for Workers with Disabilities).

Certain categories are exempt from minimum wage requirements entirely: executive, administrative, and professional employees (those earning at least $684 per week and meeting duties tests); outside salespersons; and certain seasonal and agricultural workers. Tipped employees may be paid $2.13 per hour if tips bring total compensation to $7.25 per hour; Alabama does not modify this federal tipped minimum.

Small family-owned businesses (certain agricultural and small business exceptions) may fall outside FLSA coverage entirely if they do not engage in interstate commerce. Employees in certain apprenticeship programs may be paid less under approved programs. However, these exceptions are narrowly construed and apply only when the employer meets strict legal criteria.

Alabama does not provide additional exceptions beyond FLSA exceptions. An employer cannot claim an Alabama-specific exemption; all Alabama exemptions flow from federal law. At-will employment in Alabama does not create an exception to minimum wage; employers cannot unilaterally reduce an employee below minimum wage regardless of at-will status or voluntary acceptance by the employee.

Step 1: Document all wage violations carefully. Keep pay stubs, timesheets, emails discussing pay, text messages about hours worked, and a written record of dates, hours worked, and amounts paid or not paid. Take screenshots of digital time-tracking systems. Note the names of supervisors or managers involved and specific dates when you were not paid or underpaid. Create a timeline of when you noticed the violation and any complaints you made.

Step 2: File an internal complaint with your employer if safe to do so. Write a dated, detailed letter to your manager, HR, or payroll department stating the specific wage violation—dates, hours, amount owed. Keep a copy. This creates a record and gives the employer notice; in many cases, employers correct the issue. However, internal complaints are not required before filing with the government. If you fear retaliation, skip this step and proceed to Step 3.

Step 3: File a wage complaint with the U.S. Department of Labor Wage and Hour Division. Go to www.dol.gov/agencies/whd or call the WHD regional office serving Alabama at 1-866-4-US-DOL (1-866-487-3635). You can also file online at www.dol.gov/agencies/whd/contact. The complaint is free and can be filed by phone, online, or in person. Provide your name, contact information, employer name and address, job title, dates of employment, and a detailed description of the wage violation (hours underpaid, dates, amounts, reasons given). Include the names of co-workers if applicable. There is no filing deadline for federal wage claims, but file as soon as reasonably possible; back pay is limited to two to three years.

Step 4: Expect the WHD to contact your employer for a response and conduct an investigation. The WHD typically takes 30–90 days to investigate, though this varies. They will request payroll records, timesheets, and other documents from your employer. You may be asked follow-up questions. The WHD does not hold a hearing; they investigate and issue findings. If they find a violation, they will demand the employer pay back wages. If the employer refuses, the DOL can refer the case to the U.S. Department of Justice for civil litigation or criminal prosecution (for willful violations).

Step 5: Consult an employment attorney if the violation is substantial, involves multiple employees, retaliation occurs, or the employer refuses to cooperate. Contact a local legal aid organization or bar association for referrals. Many employment attorneys work on contingency for wage cases (paid from the recovery). An attorney can file a private lawsuit in federal court under the FLSA if administrative remedies are slow, which may yield faster results and additional remedies including attorney's fees.