Minimum Wage $7.25 / HR
Alabama does not have a separate state minimum wage law. For covered workers, the federal Fair Labor Standards Act sets the minimum wage at $7.25 per hour.
Employers must pay covered, non-exempt employees at least the federal minimum wage for every hour worked. Work time can include pre-shift setup, post-shift cleanup, required meetings, training, travel between job sites during the workday, and other job duties the employer knows are being performed.
Alabama also follows the federal tip-credit framework. Tipped employees may be paid a direct cash wage of $2.13 per hour only if tips bring total pay to at least $7.25 per hour and the employer satisfies the FLSA tip-credit rules.
Overtime Laws 1.5X RATE
Alabama generally relies on the FLSA for overtime. Covered, non-exempt employees must be paid one and one-half times their regular rate for hours worked over 40 in a workweek.
At the federal minimum wage, the minimum overtime rate is $10.88 per hour. If a worker earns more than $7.25 per hour, overtime must be calculated from the worker’s actual regular rate, not the minimum wage.
The regular rate can include more than base hourly pay. Certain bonuses, commissions, shift differentials, piece-rate earnings, and incentive pay may need to be included when calculating overtime.
Overtime is calculated weekly. A long single day does not create overtime by itself unless total hours exceed 40 in the workweek.
Meal & Rest Breaks NO STATE MANDATE
Alabama does not require meal or rest breaks for adult employees under state law. Break rights usually come from federal pay rules, employer policy, a contract, or a collective bargaining agreement.
When an employer provides short breaks of about 20 minutes or less, federal law generally treats that time as paid work time. Those minutes count toward total hours worked and can count toward overtime.
Meal periods of 30 minutes or more may be unpaid only when the employee is fully relieved of duty. If the employee must keep working, answer phones, monitor equipment, help customers, or remain on duty, the time may need to be paid.
Off-the-Clock Work COMMON VIOLATION
Off-the-clock work is one of the most common wage issues in FLSA-heavy states like Alabama. Employers must pay for work they require, allow, or know is being performed.
Common examples include booting up systems before clocking in, cleaning after clocking out, completing paperwork at home, answering texts after hours, working through unpaid breaks, or being told to edit time records.
A policy against unauthorized overtime does not erase the duty to pay for overtime that was actually worked. The employer may discipline a worker for violating a policy, but it still must pay for the hours.
Employee Misclassification COMMON VIOLATION
Some Alabama employers label workers as independent contractors or exempt employees to avoid minimum wage and overtime. The label does not decide the case.
For independent-contractor issues, the real working relationship matters. A worker who is controlled by the company, works as part of the company’s regular business, uses company tools, and does not operate an independent business may be an employee.
For overtime exemptions, actual job duties matter more than titles. Assistant managers, coordinators, dispatchers, office staff, crew leads, and salaried workers may still be non-exempt when they do not meet the legal duties test.
Misclassified workers may be owed unpaid overtime, minimum wages, and liquidated damages under the FLSA.
Filing a Claim 2-3 YEAR WINDOW
FLSA minimum wage and overtime claims generally have a two-year limitations period. When the violation is willful, the period can extend to three years.
The clock usually runs from the date the wages should have been paid. Each unpaid workweek can have its own deadline, which means waiting can reduce the amount that remains recoverable.
Workers can pursue claims involving unpaid minimum wage, unpaid overtime, off-the-clock work, improper tip credits, misclassification, unpaid training, and regular-rate errors.
This article is provided for informational and educational purposes only and does not constitute legal advice. Reading this content does not create an attorney-client relationship with Josephson Dunlap LLP. Wage and hour laws vary by state, and the application of these laws depends on the specific facts of each situation. The figures and information cited above are current as of the date of publication and are subject to change. Prior results in other matters do not guarantee or predict a similar outcome in any future matter. If you believe your wages were not paid correctly, consult a qualified, licensed employment attorney.
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