Minimum Wage in Alabama
Alabama (AL) · Minimum wage · Last reviewed July 2026
Alabama minimum
$7.25 / hr
Federal floor
$7.25 / hour
As of
July 2026
Federal vs. State Minimum Wage
The federal minimum wage is $7.25 per hour and has been since July 2009. When a state (or city) sets a higher minimum, the higher rate is what employers must pay. When the state rate is lower or nonexistent, the federal $7.25 applies to employees covered by the FLSA.
As of July 2026, the Alabama (AL) minimum wage is about $7.25 per hour — the same as the federal floor. Rates are revisited regularly (often each January), so confirm the current figure with the official source below before you run payroll.
Most Alabama employers follow the state rate, but always confirm whether any local ordinance sets a higher minimum where you operate.
Tipped Employees
Tipped workers can be paid a lower cash wage as long as tips bring them up to at least the full applicable minimum wage. The federal tipped cash wage is $2.13 per hour, but many states require a higher tipped wage — and a few require the full minimum with no tip credit. Alabama employers should verify the tipped rules that apply locally.
Staying Compliant
Because minimum-wage rates change and can differ by city, the safest approach is to check the official rate at the start of each year and whenever you hire in a new locality. Keep accurate time records so you can always show that pay met or exceeded the minimum for every hour worked.
Alabama Labor-Law Snapshot
Alabama's minimum wage is $7.25/hour (the federal floor). At that rate, overtime runs about $10.88/hour, and Alabama permits a tip credit toward the minimum wage for tipped employees.
For Alabama employers these rules interact with timekeeping: accurate, audit-logged hours drive overtime, final pay, and break records. Alabama sets no statewide meal-break requirement and does not mandate paid rest breaks; a final paycheck is due by the next regular payday when an employee resigns. Confirm current Alabama figures with the state labor office before relying on any single number.
Official Sources
More Alabama Guides
Minimum Wage in Other States
Alabama Minimum Wage: Frequently Asked Questions
What is the minimum wage in Alabama?
As of July 2026, the minimum wage in Alabama is about $7.25 per hour, matching the federal floor. Confirm the current figure before running payroll, as rates change.
Can Alabama employers pay tipped workers a lower wage?
Yes — a lower cash wage is allowed as long as tips bring the employee up to the full applicable minimum wage. Some states require a higher tipped cash wage.
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