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; therefore, employers must follow the federal law if they are covered by the Fair Labor Standards Act (FLSA):

$7.25 per hour for most employees

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Tipped employees in Alabama may be paid a federal base cash wage of at least $2.13 per hour under the FLSA. However, employers must ensure that the employee’s combined direct cash wage and tips equal at least the federal minimum wage of $7.25 per hour. If an employee’s tips plus the base cash wage do not total at least $7.25 per hour for every hour worked, the employer is legally required to make up the difference (last updated: January 1, 2026).

Alabama does not have its own state overtime laws. As a result, employers in Alabama must follow the federal overtime requirements under the Fair Labor Standards Act (FLSA).

Under the FLSA, non-exempt employees who work more than 40 hours in a standard workweek are entitled to overtime pay. Most non-exempt employees must be paid overtime at a rate of one and one-half (1.5) times their regular rate of pay for all hours worked 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. 

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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 2026, 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 employs minors ages 14–15. 

• A Class II Child Labor Certificate is required for each location where the employer employs minors ages 16–17.

In addition, employers must have on file a complete list of all employees ages 14 and 15 (with a limited exception for agricultural service occupations).

Records employers must keep

Employers must keep on their premises for at least three years a separate file for each employee under age 19 that includes, at minimum: name, home address, telephone number, date of birth, date of hire, proof of age, school of attendance, specified time records, and any other information Alabama Department of Labor may require.

Late-night work restriction (enrolled students)

A 16-, 17-, or 18-year-old enrolled in any public or private primary or secondary school may not work between 10:00 p.m. and 5:00 a.m. on any night before a school day. The appropriate county or city superintendent of schools (or, if none, the school headmaster) may grant exemptions.

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

For minors 14–15 when school is in regular session:

• Cannot work during school hours unless the minor has 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 6 days in any one week

  • More than 18 hours in any school week

  • Before 7:00 a.m. or after 7:00 p.m.

For minors 14–15 during summer vacation (or where the minor has completed the course of study required for secondary schools):

• Cannot work:

  • More than 8 hours per day

  • More than 6 days in any one week

  • More than 40 hours in any one week

  • Before 7:00 a.m. or after 9:00 p.m.

Break laws for minors 14–15:

• No 14- or 15-year-old may be employed for more than five consecutive hours without a documented meal or rest period of at least 30 minutes.

Hiring
Alabama employers must comply with federal age discrimination laws and Alabama’s Age Discrimination in Employment Act, which prohibits discrimination against individuals age 40 and over. In practice, these protections largely mirror federal law and do not impose additional state-specific hiring requirements.

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.