Alabama Wage Payment Laws

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.

Direct Depost

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.

Payroll Card

Alabama does not have any laws addressing whether an employer from paying an employee by payroll card. Employers are likely permitted to use payroll cards to pay employees. It is uncertain whether an employer may lawfully require an employee to be paid by way of a payroll card.

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’s 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 employee’s 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 paycheck 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.

Recordkeeping Requirements

Alabama does not have any laws requiring an employer to keep any wage, hour, or payment 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.

Notice Requirements

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.