Alabama Wage Payment Laws
- Frequency of wage payments
- Manner of wage payments
- Direct deposit
- Payment upon separation from employment
- Wage in dispute
- Deductions from wages
- Uniforms, tools, and other equipment necessary for employment
- Pre-hire medical, physical, or drug tests
- Notice of wage reduction
- Statement of wages (pay stubs)
- Record keeping requirements
- Notice requirements
Frequency of Wage Payments
Alabama does not have any laws dictating when or how frequently an employer must pay employees their wages.
Manner of Wage Payments
Alabama does not have any laws dictating how an employer must pay employees their wages.
Alabama does not have any laws prohibiting direct deposit. Employers are likely permitted to use direct deposit to pay employees. It is uncertain whether an employer may lawfully require an employee to be paid by way of direct deposit.
Payment upon Separation from Employment
Alabama does not have any laws dictating when an employer must pay wages to employees who:
- have been fired or discharged;
- voluntary quit or resign;
- have left work due to a labor dispute or strike; or
- are laid off
Wages in Dispute
Alabama does not have any laws requiring an employer to pay an employee wages conceded to be due when involved in a wage dispute with the employee.
Deductions from Wages
Alabama does not have any laws regarding what deductions may or may not be taken from an employees paycheck or whether an employee must provide written consent prior to any deduction. The lack of a law prohibiting deductions likely means an employer can withhold or deduct wages from an employees pay check for:
- cash shortages
- breakage, damage, or loss of the employer’s property
- dishonored or returned checks
- required uniforms
- required tools
- other items necessary for employment
In accordance with federal law, an employer may not make deductions for any of the above-listed items if it would cause the employee to earn less than federal minimum wage for the period in which the deduction was made. DOL Fact Sheet #16. Deductions to pay for an employee’s portion of any fringe benefit would be permissible.
Uniforms, Tools, and Other Equipment Necessary for Employment
Alabama does not have any laws prohibiting an employer from requiring an employee to purchase a uniform, tools, or other items necessary for employment.
Pre-hire Medical, Physical, or Drug Tests
Alabama does not have any laws prohibiting an employer from requiring an applicant or employee to pay the cost of a medical examination or the cost of furnishing any records required by the employer as a condition of employment.
Notice of Wage Reduction
Employers may reduce employee wages at any time, unless there is an employment agreement or contract that prohibits the reduction.
Alabama does not have any laws addressing whether an employer must provide employees notice prior to instituting a wage reduction. However, a wage reduction can only be applied to hours worked after the decision to reduce wages has been made and cannot be applied to hours already worked.
Statement of Wages (Pay Stub)
Alabama does not have any laws requiring an employer to provide employees with a statement of wages or pay stub.
Record Keeping Requirements
Alabama does not have any laws requiring an employer to keep any employment-related documents. Federal law requires every employer covered by the Fair Labor Standards Act (FLSA) to keep certain records for each covered, nonexempt worker, for at least 3 years. For more information, visit FLSA.
Alabama does not have any laws requiring employers to provide employees, whether at hire or at any other time, of notice of wage rates, dates of pay, employment policies, fringe benefits, or other terms and conditions of employment.