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Minimum Wage in Alabama in 2023

Last Updated on:

25 January 2023
Minimum Wage in Alabama

Employers of all types working for a business or owning a business must be well-acquainted with the wage laws in their state. This will allow them to pay their employees properly with the minimum wages in mind, including paying the correct overtime wage.

Everyone is entitled to the minimum wage outlined by state or federal law, regardless of employee age. It's no different in Alabama, and every employee from sixteen years of age and above should get their minimum wages as instructed by the labor law.

This article discusses everything you need to know about the minimum wage in Alabama, whether you're an employer or an employee. You'll also see how the Federal minimum wage law has changed over the past years so that you can forecast the progression for the upcoming years.

It will also help to know in which cases the law has exceptions in wages, such as for part-time employees and tipped workers. Besides, knowing the minimum overtime wage for all employees and how to calculate it will help employers pay them responsibly.

What is the Minimum Wage in Alabama?

Alabama has no state minimum wage law set by the Government of the State of Alabama, which is why they need to pay the Federal minimum wage following the Fair Labor Standards Act (FLSA). Therefore, all employees paid in wages must receive a minimum of $7.25 per hour, effective July 24, 2009.

Aside from minimum wage for a standard 40-hour week, employers in Alabama also have to pay minimum overtime to employees working more than forty hours a week, according to FLSA instructions. In such cases, employers must keep a record of overtime.

Alabama Weekly Minimum Wage

According to Federal law, the minimum wage in Alabama is $7.25 per hour. No state minimum wage law has been established, so the minimum weekly wage an employer must pay each worker is:

(40 hours/week)*($7.25/hour)= $290/week

Therefore, every worker is entitled to a minimum wage of $290 per week if they have yet to work overtime.

Alabama Overtime Minimum Wage

The minimum overtime calculation is slightly different from the calculation for minimum weekly wages. Employers must pay one-half times more than their regular wage rate for any non-exempt worker covered by FLSA working more than forty hours a week.

Employees working regular hours on weekends and holidays may only receive overtime pay if they work overtime on these days. Following is an example of minimum overtime for someone who worked sixty hours a week.

Weekly wage= (40 hours/week)*($7.25/hour)= $290/week

Overtime worked= 20 hours

Overtime minimum pay= ($7.25*1.5)= $10.875 per hour

Therefore,

Overtime minimum wage= $290+(20 hours*$10.875/hour)= $507.5

How is Alabama Minimum Wage Different from the Federal Minimum Wage?

Unlike some states that follow state minimum wage law and Federal minimum wage law, Alabama doesn’t have any state law regarding minimum wages, which is why they follow what the Federal law states. Therefore, Alabama's minimum wage is the same as the Federal minimum, which is $7.25 per hour.

Local Minimum Wages in Alabama

As the State of Alabama doesn’t have any established state minimum wage law, all the cities in this state follow the Federal minimum wage law. Therefore, employees across all cities in Alabama should be paid $7.25 per hour as their minimum wage, except for exceptional cases such as tipped employees, students, and part-time employees.

Who Qualifies for Minimum Wage?

The minimum wage law in Alabama applies to almost everyone. Exceptional cases are tipped employees, employees under the age of twenty, full-time students, disabled workers falling under specific categories, and overtime workers.

Following are explanations of how exceptional workers or employees get their minimum wages paid:

  • Full-time/Part-time students: Employers in retail and service stores, agriculture, colleges, and universities can pay full-time and part-time student workers 85 percent of the minimum wage, which is $6.16 per hour. Full-time vocational students can earn 75 percent of the minimum wage, which is $5.44.
  • Employees under twenty years old: According to the FLSA, a company must pay these employees a minimum wage of $4.25 for their first ninety days of employment. After ninety days, they are entitled to receive the full minimum wage.
  • Tipped employees: Tipped employees who earn at least $30 per month in tips must be paid $2.13 per hour in minimum wages. With that and the tips they receive, every tipped employee must earn the minimum wage of $7.25 passed by the Federal law.
  • Disabled employees: Employees with disabilities who have a certificate from the Alabama Department of Labor must be allowed to work with a minimum wage.
  • Employees working overtime: Overtime employees working over 40 hours a week are entitled to receive overtime wages which are the minimum wage plus one and one-half of the extra hours worked.

Historical Change of Minimum Wage in Alabama

The minimum wage in this state has stayed the same since its last change on July 24, 2009. However, there have been consecutive changes in Federal minimum wage law, thus affecting the minimum wage in Alabama.

The following tables display the minimum wage in the State of Alabama from 2002 to 2023, outlining the most recent changes.

2012-2023:

Effective Date

Minimum Wage Per Hour

January 1, 2023

$7.25

January 1, 2022

$7.25

January 1, 2021

$7.25

January 1, 2020

$7.25

January 1, 2019

$7.25

January 1, 2018

$7.25

January 1, 2017

$7.25

January 1, 2016

$7.25

January 1, 2015

$7.25

January 1, 2014

$7.25

January 1, 2013

$7.25

January 1, 2012

$7.25

2002-2011, displaying minimum wage after increases on July 24 of 2007, 2008, and 2009:

Effective Date

Minimum Wage Per Hour

January 1, 2011

$7.25

January 1, 2010

$7.25

January 1, 2009

$6.55

January 1, 2008

$5.85

January 1, 2007

$5.15

January 1, 2006

$5.15

January 1, 2005

$5.15

January 1, 2004

$5.15

January 1, 2003

$5.15

January 1, 2002

$5.15

FAQ

1.  Will the minimum wage for Alabama change further?

Once the Federal minimum wage changes, so will the minimum wage in Alabama. Or the Government of Alabama decides to set a minimum wage.

2.  How much will I earn in Alabama a year on minimum wages?

A year consists of 52 weeks. Therefore, on a minimum wage of $7.25 per day, if you work all weeks and a minimum of forty hours per week, you’ll earn: ($7.25/hour)*(40 hours/week)*(52 weeks)= $15,080 in a year.

3.  How much will my minimum wage be if I'm under 18?

According to the FLSA, employees under twenty years old must receive a minimum wage of $4.25 for the first ninety days of employment, after which they are entitled to receive the full minimum wage. Therefore, the same will apply to those under eighteen but sixteen or over.

4.  Will I qualify for overtime wage if I don’t work overtime for consecutive days?

If you work over forty hours a week, that is, more than eight hours on any day or multiple days in a week, you'll qualify for overtime even if you don't work overtime for consecutive days. However, if you work regular hours during weekends or on holidays, you may only qualify for overtime if you've also worked overtime on those days.


Josh Evan

Written by:

Josh Evan

Josh Evan is the professional career counselor and career development writer at When Work Works. He loves to see people from this field succeed through initiating the right thing in the right way. He never tells; he shows the way. We appointed John not because of his impressive CV. It was his counseling charisma which stood out of everything. He can implant idea, confidence and productive thoughts into mind almost effortlessly. His pen and mouth both speak for the greater good.


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