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Wage and Hour Laws for Private Sector Employers
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TOPICS COVERED (Scroll down for detailed information):
- Minimum Wage
- Overtime
- Meals and Breaks
- Vacation Leave
- Sick Leave
- Severance Pay
- Holiday Leave
- Jury Duty
Meals and Break
Alabama employers are required to provide a 30-minute meal/rest period to employees
ages 14 and 15 who are scheduled to work 5 continuous hours. Code of Alabama Title
25, 8-38
Alabama employers are not required to provide a meal period or breaks to employees 16
years of age and over, thus the federal rule applies. The federal rule does not require an
employer to provide either a meal (lunch) period or breaks. However, if an employer
chooses to do so, breaks, usually of the type lasting less than 20 minutes, must be paid.
Meal or lunch periods (usually 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. DOL: Breaks and Meal
Periods.
Vacation
In Alabama, employers are not required to provide employees with vacation benefits, either
paid or unpaid. AL Dept. of Labor FAQ. If an employer chooses to provide such benefits, it
must comply with the terms of its established policy or employment contract. See Amoco
Fabrics and Fibers Co. v. Hilson, 669 So.2d 832 (Ala. Sup. Ct. 1995); ISS International
Service Systems v. Alabama Motor Express, 686 So.2d 1184 (Ala. App. 1996).
An employer may lawfully establish a policy or enter into a contract denying employees
payment for accrued vacation leave upon separation from employment. AL Dept. of Labor
FAQ.
An employer may lawfully establish a policy or enter into a contract disqualifying employees
from payment of accrued vacation upon separation from employment if they are terminated.
AL Dept. of Labor FAQ.
An employer may also lawfully establish a policy or enter into a contract disqualifying
employees from payment of accrued vacation upon separation from employment if they fail
to comply with specific requirements, such as giving two weeks notice or being employed
as of a specific date of the year. See ISS International Service Systems v. Alabama Motor
Express, 686 So.2d 1184 (Ala. App. 1996).
An employer is required to pay accrued vacation to an employee upon separation from
employment if its policy or contract requires it. AL Dept. of Labor FAQ.
An employer is not required to pay accrued vacation leave upon separation from
employment if the employer’s established policy or employment contract is silent on the
matter, unless the employer has established a practice of doing so. AL Dept. of Labor FAQ.
Alabama’s Legislature and its courts are silent regarding whether an employer may
lawfully cap the amount of leave an employee may accrue, although based on the
contractual emphasis placed on vacation leave policies in Alabama, such caps are likely
lawful. AL Dept. of Labor FAQ.
An employer would also likely be free to implement a “use-it-or-lose-it” policy requiring
employees to use their leave by a set date or lose it.
Sick Leave
Alabama law does not require employers to provide employees with sick leave benefits,
either paid or unpaid. AL Dept. of Labor FAQ. If an employer chooses to provide sick leave
benefits, it must comply with the terms of its established policy or employment contract. An
employer is not required by Alabama law to pay accrued sick leave benefits to employees
upon separation from employment. An employer in Alabama may be required to provide an
employee unpaid sick leave in accordance with the Family and Medical Leave Act or other
federal laws.
Severance
Alabama law does not require employers to provide employees with severance pay. AL
Dept. of Labor FAQ. If an employer chooses to provide severance benefits, it must comply
with the terms of its established policy or employment contract.
Holidays
Alabama law does not require employers to provide employees with either paid or unpaid
holiday leave. In Alabama, an employer can require an employee to work holidays. An
employer does not have to pay an employee premium pay, such as 1 1/2 times the regular
rate, for working on holidays, unless such time worked qualifies the employee for overtime
under standard overtime laws. If an employer chooses to provide either paid or unpaid
holiday leave, it must comply with the terms of its established policy or employment
contract.
Minimum Wage
Alabama has not established a minimum wage rate. AL Dept. of Labor FAQ. The federal
minimum wage rate applies. Currently, the federal minimum wage rate is $7.25. Some
exceptions apply. FLSA: Minimum Wage.
Overtime
Alabama does not have laws governing the payment of overtime. Federal overtime laws
apply. See FLSA: Overtime for more information regarding overtime requirements.
EmploymentLawHandbook.com
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Your Employment and Labor Law Resource
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Jury Duty
Alabama requires employers to grant paid leave to employees who are summoned for and
participate in jury duty.
For the employee to be eligible for leave related to jury duty, the employee must show his or
her employer the jury summons on the next day he or she is at work after receiving the
summons. The employer must grant paid leave to the employee for the time required by
the summons or required by any subsequent jury duty.
An employer cannot require or request an employee use annual, vacation, unpaid or sick
leave for time spent complying with the jury summons or serving on a jury.
A court must automatically postpone or reschedule the jury duty of a summoned juror who
is an employee of an employer with five or fewer full-time employees, if another employee
of the employer has been summoned to appear during the same period.
Alabama Stat. 12-16-8
An employer may not discharge or take any other adverse employment action against an
employee who is serving on a jury, so long as the employee returns to work on the next
regular workday after being dismissed from jury duty.
Alabama Stat. 12-16-8.1