Alabama Minimum Wage Law – 2022

The current Alabama minimum wage rate is $7.25 as established by the Fair Labor Standards Act (FLSA). Employers are required to pay employees Alabama’s minimum wage rate for every hour worked unless the employer or employee is exempt by state or federal law.

Regarding the tip wage rate, Alabama allows employers to pay employees who earn tips a rate that is $2.13 per hour, as established by the FLSA so long as the wage rate plus tips results in the employees earning standard minimum wage when combined. Additionally, Alabama’s laws may allow employers, in limited situations, to pay certain employees a subminimum wage as established by the FLSA.


Minimum wage

Alabama has not established a state minimum wage rate. Since there is no Alabama minimum wage and most employers and employees in Alabama are subject to the federal Fair Labor Standards Act, the minimum wage set in that law would typically apply.

Currently, the federal minimum wage rate is $7.25.


Minimum Wage Calculator


Tip minimum wage

Alabama does not have minimum wage or overtime laws and, thus, has not established a tipped minimum wage. Because most employers and employees in Alabama are subject to the federal Fair Labor Standards Act, the standards for tipped wages set forth in that law typically apply.

This will apply to tipped workers such as those in the food service industry and hospitality industry.


Tip pooling and sharing

Alabama does not have minimum wage or overtime laws and, thus, has not established a rules regarding tip or gratuity pooling. Because most employers and employees in Alabama are subject to the federal Fair Labor Standards Act, the standards for tip or gratuity pooling set forth in that law typically apply.


Subminimum wage

Employees with disabilities

Alabama does not have minimum wage laws and, thus, does not address subminimum wage rates employers may pay to employees with disabilities. Because most employers and employees in Alabama are subject to the federal Fair Labor Standards Act, the standards for wage rates for employees with disabilities set forth in that law typically apply.


Trainees

Alabama does not have minimum wage laws and, thus, does not address subminimum wage rates employers may pay to trainees. Because most employers and employees in Alabama are subject to the federal Fair Labor Standards Act, the standards for wage rates for trainees set forth in that law typically apply.


Apprentices

Alabama does not have minimum wage laws and, thus, does not address subminimum wage rates employers may pay to apprentices. Because most employers and employees in Alabama are subject to the federal Fair Labor Standards Act, the standards for minimum wage rates for apprentices set forth in that law typically apply.


Learners

Alabama does not have minimum wage laws and, thus, does not address subminimum wage rates employers may pay to learners. Because most employers and employees in Alabama are subject to the federal Fair Labor Standards Act, the standards for minimum wage rates for learners set forth in that law typically apply.


Student learners

Alabama does not have minimum wage laws and, thus, does not address subminimum wage rates employers may pay to student learners. Because most employers and employees in Alabama are subject to the federal Fair Labor Standards Act, the standards for minimum wage rates for student learners set forth in that law typically apply.


Student workers

Alabama does not have minimum wage laws and, thus, does not address subminimum wage rates employers may pay to student workers. Because most employers and employees in Alabama are subject to the federal Fair Labor Standards Act, the standards for minimum wage rates for student workers set forth in that law typically apply.


Alabama Minimum Wage Laws 2022 FAQs

Will there be minimum wage increases in Alabama in 2022?

Alabama is one of the few remaining states that have yet to change their base minimum wage policy since 2009. That’s because they still follow the federal minimum wage.

While there are no plans to increase in the near future, workers from Birmingham have an ongoing battle to increase the hourly wage rate. This was due to a constitutional amendment proposed by Sen. Linda Coleman-Madison.

There are only five states that still adhere to the federal rate. Most have since shifted to a state minimum wage, while others offer a living wage.

A living wage provides scheduled increases based on the current cost of living. It seeks to prevent the lowest minimum wage and is thus considered an effective minimum wage setting.

The key is to balance the employee’s quality of life and a minimum wage increase’s effect on employment.

After all, if the employment cost gets too high, it could reflect on the level of statewide employment. It could force companies to cut down the number of their workers after a significant wage hike.

What are the different types of employees and their minimum wage details in Alabama?

Here’s more information on the minimum wage law as it applies to workers from different industries:

Fast-Food Workers

The fast-food minimum wage in Alabama is the same as the federal district rate. You should refer to the tipped wages established by federal law for more information.

However, it is important to note that those employed by seasonal or recreational establishments are exempt from minimum wage requirements. They are also exempt from overtime requirements.

Clerical Workers

Hourly employees with executive, administrative, professional, and certain computer-related jobs, such as clerical workers, are exempt from minimum wage requirements. They are also exempt from overtime requirements.

Domestic Workers

Domestic service workers usually follow the regular minimum wage, except for casual babysitters and carers of the elderly and the ill. Meanwhile, those who live in their employer’s home are exempt from overtime requirements.

Minor Workers

Minor employees have set work hours depending on whether schools are in session. This particularly applies to minor employees aged 14 to 15 years old.

Meanwhile, minor employees aged 16 and above can work more hours per week, especially after-school or summer employment. You just need to make sure that full-time students won’t work after 10:00 in the evening or earlier than 5:00 in the morning on a school night.

Finally, for those who are wondering, the state of Alabama doesn’t have a set sub-minimum wage rate for student learners and workers.

Disabled Workers

Similar to student workers, there is no sub-minimum wage rate set for disabled workers in Alabama.

What should business owners know about minimum wage increases in Alabama?

Here are some essential pieces of information about the minimum wage increase:

Compliance Updates

Any business owner should always be up to date with changes in the minimum wage law, minimum wage level, and the different minimum wage categories. For instance, the regular city minimum wage can differ from a county minimum wage.

The base wage for hourly workers and their hour requirement may also vary according to the scale and industry that their employer belongs to.

Health Care

Another factor to watch out for after minimum wage changes is health insurance. The base wage of covered employees is slightly lower than those who don’t have health insurance provided by their employers.

We understand that giving your employees medical benefits can be quite an investment. Just remember that this benefit can also increase job satisfaction levels and reduce employee turnover rates (and costs).

Minimum Wage vs. Business Scale

It doesn’t matter how big your business is. The rate will still stay the same. The larger-business minimum wage is the same as the micro-business minimum wage.

Inflation

There is a possibility that the minimum wage in the future will be set according to the annual inflation indexing. This refers to automatic inflation adjustments usually based on the annual percentage change in the consumer price index (or CPI).

Such adjustments are made to prevent cumulative inflation. This stands for the decline in the people’s purchasing power.

Employee Assessment

Finally, it will help a business owner evaluate their employee needs, especially if you can already feel the difficulties with each payroll week.

For instance, do you need that many employees? How productive is each individual employee, and is it worth the monthly compensation?

Is there a way to reduce the days of employment or just their hours per week? Having a flexible work hour plan is beneficial not only for business owners but also for employees seeking to improve their work-life balance.


Other State’s Minimum Wage Information

AlabamaHawaiiMassachusettsNew MexicoSouth Dakota
AlaskaIdahoMichiganNew YorkTennessee
ArizonaIllinoisMinnesotaNorth CarolinaTexas
ArkansasIndianaMississippiNorth DakotaUtah
CaliforniaIowaMissouriOhioVermont
ColoradoKansasMontanaOklahomaVirginia
ConnecticutKentuckyNebraskaOregonWashington
DelawareLouisianaNevadaPennsylvaniaWest Virginia
District of ColumbiaMaineNew HampshireRhode IslandWisconsin
FloridaMarylandNew JerseySouth CarolinaWyoming
Georgia

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