(650) 332-8623Alabama Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More for 2026
Alabama labor laws 2026: minimum wage, overtime, child labor, and breaks explained for employers. Your complete compliance guide.
What’s new in 2026?
Alabama meals and breaks
No lawFor lunch breaks
No meal break is required for adults under Alabama labor laws. Breaks and meals for workers 16 and older follow federal standards only.
- Meal break provision is at the employer’s discretion.
- Minors (14 or 15 y/o) working more than 5 continuous hours are entitled to a 30-minute meal break.
No lawFor rest breaks
Under Alabama labor laws, breaks for adult workers are not required by state law. Federal standards apply, construction crews included.
- Short breaks (5–20 mins.) must be paid under federal law.
- Rest break provision is set by employer policy or collective bargaining agreements.
Alabama leave and paid time off (PTO)
Private employers are not legally required to provide sick leave, whether paid or unpaid. Alabama contractors set their own sick leave policies. If offered, the policy must be followed consistently.
The federal Family and Medical Leave Act (FMLA) applies to Alabama employers. It provides eligible workers with up to 12 weeks of unpaid, job-protected leave.
Eligibility criteria:
- Must work for a covered employer (50+ employees, public agencies, or schools)
- At least 12 months of employment with the employer
- 1,250+ hours worked in the past 12 months
- Work at a location with 50+ employees within 75 miles
Qualifying reasons for leave:
- Birth or care of a newborn
- Adoption or foster care placement
- Care for a spouse, child, or parent with a serious health condition
- Employee’s own serious health condition
- Family member’s active duty military service-related exigencies
Bereavement leave policies differ between public and private sector employees. While private employers are not mandated by state law to provide bereavement leave, public employees have specific provisions:
- Paid leave for the death of a relative (by blood, adoption, or marriage)
- Only available if the employee has no accrued sick leave
- Limited to three days.
- Must reimburse the state within a year using sick, annual, or personal leave
New as of July 1, 2025. The Alabama Public Employee Paid Parental Leave Act is now law. Act 2025-81 / SB199 covers eligible state and public education employees. It applies following birth, stillbirth, or miscarriage after 12 weeks. Codified at Ala. Code § 36-6A-1 et seq.
- Female employees: 8 weeks of paid leave at 100% base pay
- Male employees: 2 weeks of paid leave in the same circumstances
- Qualifying adoptions of a child under age 3: one parent gets 8 weeks. The other gets 2 weeks if both parents are eligible employees.
Who is covered: State employees, K–12 public school teachers, and Alabama Community College System staff. Minimum requirement: 12 consecutive months of employment.
Private-sector workers are not covered. Federal FMLA unpaid leave remains the standard for private employers. For construction contractors, nothing changes.
Alabama contractors are not required by state law to provide bereavement leave. Public employees have specific provisions under Alabama bereavement leave rules:
- Paid leave for the death of a relative (by blood, adoption, or marriage).
- Only available if the employee has no accrued sick leave.
- Limited to three days.
- Must reimburse the state within one year using sick, annual, or personal leave.
Alabama contractors are not legally required to provide vacation leave, paid or unpaid. If offered, it must follow the established policy or employment contract.
Contractors can implement policies that disqualify employees from receiving accrued vacation pay upon separation. Alabama courts have upheld such policies, including in Amoco Fabrics and Fibers Co. v. Hilson and ISS International Service Systems v. Alabama Motor Express.
Private employers are not legally required to provide employees with paid or unpaid holiday leave. The decision to offer such benefits is at the discretion of each employer.
However, if an employer chooses to provide holiday leave, they must adhere to their established policies or employment contracts.
Alabama law mandates that employers provide leave for employees summoned for jury duty. Full-time workers keep their usual pay. Contractors cannot require employees to use vacation or sick leave for jury service.
New: Parker’s Law (SB76, May 2025): Breastfeeding mothers are now exempt from jury duty in Alabama. An employee who is breastfeeding may claim this exemption upon receiving a summons.
Under Ala. Code § 15-23-81, employees who are crime victims may take leave to participate in criminal proceedings. Employers must grant this leave but are not required to provide paid time off unless company policy states otherwise.
Employees are entitled to take up to one hour off work to vote in any election, with reasonable notice. Not available if work starts two or more hours after polls open. Also not available if work ends one or more hours before polls close.
Employees appointed as election officials under Ala. Code § 17-8-1 are entitled to leave to serve on election day. Applies to employers with more than 25 employees (Ala. Code § 17-8-13).
Alabama law grants military leave of absence to public and private employees. Covered units: the Alabama National Guard, Naval Militia, State Guard, Civil Air Patrol, National Disaster Medical System, and all U.S. reserve components.
Leave covers training or service under federal or state orders. Pay, time, and benefits are protected. The annual cap is 168 paid working hours. An additional 168 hours applies if the Governor calls the employee to active state duty.
Alabama law provides job protection for employees who serve as volunteer firefighters or volunteer emergency medical service providers. Employers are prohibited from terminating these employees for missing work due to emergency calls.
- “Emergency” includes fire calls, hazardous material spills, or situations requiring volunteer fire department dispatch.
- Employees must notify their employer before missing work and provide a statement from the fire chief if requested.
Alabama wages and overtime
$7.25/hourMinimum wage
The Alabama minimum wage is set at the federal floor of $7.25/hour. Alabama has no state minimum wage law. Employers follow the Fair Labor Standards Act (FLSA), in effect since July 24, 2009. This covers most non-exempt workers.
Pending – SB 171 (introduced January 15, 2026): This bill proposes Alabama’s first state minimum wage at $10.00/hour. It would take effect January 1, 2027. Businesses with 50 or fewer employees would be exempt.
It has not passed as of April 2026. Until it does, the Alabama minimum wage remains $7.25/hour. Construction contractors should monitor its progress.
1.5x hourlyOvertime rate
Alabama overtime laws defer entirely to the federal FLSA. Non-exempt employees earn 1.5 times their regular hourly wage for all hours beyond 40 in a workweek. This includes hourly construction workers.
- Current salary threshold: $684/week ($35,568/year). A federal court in Texas vacated the DOL’s 2024 rule on November 15, 2024 (Texas v. Department of Labor). That rule would have raised the threshold to $1,128/week. It never took effect. The threshold reverted to the 2019 level of $684/week.
- State income tax exemption on overtime — EXPIRED: The Alabama overtime tax exemption (Act 2024-382) expired June 30, 2025. As of July 1, 2025, overtime pay is fully subject to Alabama state income tax. The legislature did not renew it. Overtime pay is now fully subject to Alabama state income tax.
- Note on federal overtime tax: The One Big Beautiful Bill Act exempts overtime from federal income tax for eligible workers. It covers tax years 2025–2028. This is a federal provision, not an Alabama one.
$2.13/hourTipped minimum wage
Alabama has no state tip or wage laws. Under FLSA, employers may pay tipped employees the Alabama tipped minimum wage of $2.13 per hour. Total earnings (base wage plus tips) must reach at least $7.25/hour.
- Employees must regularly earn over $30/month in tips, and employers must inform them of tip credit rules.
- Tip pooling is allowed but cannot include non-tipped staff like cooks or dishwashers.
No lawPay frequency
Alabama has no state-mandated pay frequency law. Contractors may pay crews weekly, biweekly, semimonthly, or monthly.
- FLSA Alabama pay rules require timely wage and overtime payments to crews. No specific pay period is mandated.
Local governments are prohibited from setting their own minimum wage rates. The Alabama Uniform Minimum Wage and Right-to-Work Act of 2016 is the reason. It bars municipalities from setting wage standards above state or federal levels.
- The 2016 law blocked Birmingham’s attempt to raise its local minimum wage, maintaining the federal rate of $7.25 statewide.
- No local jurisdiction in Alabama can set a higher minimum wage rate.
Alabama follows federal sub-minimum wage provisions under FLSA. Employers must obtain certificates from the U.S. Department of Labor’s Wage and Hour Division.
a. Workers with disabilities
Employers may pay workers with disabilities sub-minimum wages. Pay reflects productivity relative to comparable workers. A special certificate from the Wage and Hour Division is required.
b. Student learners and full-time students
Student-learners in vocational education qualify for a sub-minimum rate. So do full-time students in retail, service, agriculture, or higher education. The floor is 75% of the federal minimum wage. An authorized certificate is required.
c. Industrial homeworkers
Certain homeworkers may be paid below minimum wage with a special certificate under 29 CFR 525.
Alabama follows federal FLSA exemptions from minimum wage and overtime requirements.
a. Executive, administrative, and professional employees
Managers, and teachers or academic administrative personnel in elementary and secondary schools.
b. Outside sales employees
Workers whose primary duties involve sales conducted away from the employer’s place of business.
c. Seasonal and industry-specific workers
Seasonal amusement or recreational establishments, small newspapers, seamen on foreign vessels, fishing operations, and newspaper delivery workers.
d. Small farmworkers
Farmworkers employed by entities using fewer than 500 man-days of farm labor in any calendar quarter of the prior year.
e. Domestic workers
Casual babysitters and companions for the elderly or infirm, exempt from both minimum wage and overtime provisions.
Track overtime to the minute and save thousands with Workyard
See how it works
AL prevailing wages
Alabama has no state-specific prevailing wage law for construction roles. Alabama prevailing wage requirements fall under the federal Davis-Bacon Act Alabama contractors on federal projects must follow. It mandates prevailing wage rates on federally funded construction projects exceeding $2,000.
Key points:
- Davis-Bacon Act Compliance: Contractors must pay laborers and mechanics the locally prevailing wage rate. Fringe benefits for comparable work must also be included. This is what Alabama contractors on federal projects must follow.
- Wage Determinations: The U.S. Department of Labor issues wage determinations specifying prevailing rates for labor classifications by geographic area.
Resources:
- U.S. Department of Labor – Davis-Bacon and Related Acts: Guidelines and enforcement for prevailing wages on federally funded projects.
- Wage Determinations Online (SAM.gov): Search official wage determinations by area and labor classification.
- ADOL – Employer Services: Compliance assistance and labor market data for Alabama employers.
- U.S. DOL – Prevailing Wage Resource Book: Comprehensive guide to Davis-Bacon processes.
Looking for other prevailing wage and state-specific labor law guides? Check out these articles:
Alabama child labor laws
Alabama child labor laws protect minors in the workplace. They set restrictions on work types, permitted hours, and provide protections for workers under 18. The child labor laws Alabama employers must follow are organized by age group.
<14 years
Laws in Alabama for children under 14:
- Children under 14 are not allowed to work in Alabama.
- The only exceptions are family-owned businesses, provided the work is non-hazardous and does not conflict with school hours.
14-15 years
Laws in Alabama for minors under 16:
Work hour restrictions:
- During school sessions: Maximum 3 hours/day and 18 hours/week.
- Outside school sessions: Maximum 8 hours/day and 40 hours/week.
Permitted work hours: 7 a.m. to 7 p.m. (extended to 9 p.m. during summer).
Breaks: Entitled to a 30-minute break for shifts exceeding 5 continuous hours.
Prohibited jobs: Cannot work in establishments serving alcohol unless family-owned, and even then cannot handle alcohol.
16-17 years
Laws in Alabama for minors aged 16 and 17:
Work hour restrictions:
- No hourly restrictions when school is not in session
- During school: Cannot work after 10 p.m. or before 5 a.m. on school nights
Employment in alcohol-serving establishments:
- Can work in supporting roles (e.g., busboys, cooks, janitors)
- Cannot serve alcohol unless aged 18+ and employer is RVP certified
Other essential Alabama labor laws
Health and safety standards in Alabama
Construction sites and all other Alabama workplaces fall under federal OSHA. Alabama has no state plan. Alabama OSHA enforcement falls entirely to the federal agency. It covers every Alabama job site.
In Alabama, employers must:
- Comply with OSHA Standards: Adhere to all applicable OSHA regulations to maintain a safe workplace.
- Provide Training: Offer necessary safety and health training to prevent workplace injuries and illnesses.
- Maintain Records: Keep accurate records of work-related injuries and illnesses as required by OSHA.
In Alabama, employees should:
- Follow safety protocols: Adhere to all safety procedures established by the employer.
- Report hazards: Inform supervisors of any unsafe conditions or practices.
- Exercise rights: Understand OSHA rights, including the right to a safe workplace and to file a complaint without retaliation.
Report health and safety violations (unsafe working conditions) in Alabama to:
Employees:
- File a complaint with OSHA online or by phone.
- Contact the Birmingham Area OSHA Office at (205) 731-1534.
Employers:
- Consult OSHA’s compliance assistance resources.
- Utilize the University of Alabama’s OSHA Training Institute Education Center for training programs.
Hiring and/or firing employees in AL
Alabama at-will employment means contractors and employers can terminate for any lawful reason. Workers can also leave without notice. Exceptions apply for terminations that violate public policy or involve discrimination.
Alabama right to work is established under Ala. Code §§ 25-7-30 to 25-7-35A. Employment cannot be conditioned on union membership or payment of union dues.
Employers cannot require employees to join, abstain from, or pay fees to a union as a condition of employment. Employees who face job denial or termination in violation of these protections may take legal action under Ala. Code § 25-7-35A.
Background checks:
Contractors and employers may run background checks but must comply with the FCRA when using a third-party agency. Written consent is required, and applicants must be notified if adverse action is taken.
Drug testing:
Alabama law does not mandate drug testing. Employers may establish drug-free workplace policies. Alabama’s optional Drug-Free Workplace Program provides a 5% discount on workers’ compensation premiums for qualifying employers.
Requirements under Ala. Code § 25-5-333 include pre-employment testing, reasonable suspicion testing, and follow-up testing after a positive result (Ala. Code § 25-5-335). All results are strictly confidential (Ala. Code § 25-5-339).
Contractors must comply with three federal anti-discrimination laws. The Civil Rights Act, ADA, and Age Discrimination in Employment Act all apply. They prohibit discrimination based on race, color, religion, sex, national origin, disability, or age.
Anti-discrimination laws in Alabama
Alabama has no comprehensive state anti-discrimination statute. Federal laws enforced by the Equal Employment Opportunity Commission (EEOC) govern workplace discrimination.
Note: on January 22, 2026, the EEOC voted 2–1 to rescind its 2024 Enforcement Guidance on Harassment. Bostock v. Clayton County (2020) remains binding Supreme Court precedent. Title VII still prohibits firing or refusing to hire someone based on sexual orientation or gender identity. The scope of those protections beyond hiring and firing decisions is subject to ongoing litigation.
Employers in Alabama may not discriminate against job applicants based on…
- Race, color, or national origin
- Religion or creed
- Sex, including pregnancy, sexual orientation, and gender identity
- Age (for individuals 40 years or older)
- Disability (physical or mental)
- Genetic information (including family medical history)
These protections cover hiring, firing, promotions, and pay. Contractors with 15+ workers are subject to most of these laws. Age discrimination rules apply to employers with 20 or more employees.
Employee resignation or termination in Alabama
Alabama at-will employment doctrine governs all separations. Either party can end the relationship at any time. No cause or notice is required. The only limits: anti-discrimination laws and retaliation protections.
If a formal employment contract exists, its terms govern and may override at-will. Workers are encouraged to provide advance notice when resigning, though it is not legally required.
Unemployment benefits in Alabama
Labor laws in Alabama entitle eligible workers to unemployment benefits. Workers must meet these requirements:
- Unemployed through no fault of their own: Typically means being laid off due to lack of work.
- Sufficient wages in the base period: This covers wages earned in the four quarters before your filing quarter.
- Able, available, and actively seeking full-time work.
To apply, visit the Alabama Department of Labor’s Claimant Portal.
COBRA benefits in Alabama
Separated employees may extend employer-provided health coverage through federal COBRA. This applies to construction companies and other employers with 20 or more employees.
- Eligibility: Voluntary or involuntary termination (except gross misconduct) or a reduction in work hours.
- Duration: Up to 18 months; disability or multiple qualifying events may extend to 36 months.
- Cost: Individual pays full premium plus a 2% administrative fee.
Final paychecks in Alabama
Alabama has no state law on final paycheck timing. Under FLSA, final wages are due on the next scheduled payday. This applies whether the worker quit or was let go.
Key points:
- Timely payment: Issue the final paycheck by the next regular payday following departure.
- Included compensation: Must include all earned wages, accrued vacation, bonuses, or commissions, unless company policy states otherwise.
- Deductions: Lawful deductions (e.g., unreturned property) are permitted, provided they do not reduce earnings below minimum wage for hours worked.
Avoid noncompliance penalties and save thousands with Workyard
See how it works
Alabama recordkeeping requirements
Alabama contractors must follow state and federal recordkeeping rules. Labor laws in Alabama set minimum retention periods. Below is the required schedule.
1 year
Employers must retain these documents for at least one year:
Proof of age and completed Employee Information Forms for all employees under 19 years old.
- Time records detailing hours worked, start and end times, and break periods.
- Records must be maintained on the premises where the minor works or at a centralized location.
- Retain time records for the 60 days before the last recorded work period. Electronic or photostatic form is acceptable.
2 years
Employers must retain these documents for at least two years:
Wage and pay records (FLSA): Time cards, work schedules, and wage computations. These must justify wage payments and any pay differences between employees.
3 years
Employers must retain these documents for at least three years:
- Payroll records: Employee names, addresses, total hours worked, wages paid, and overtime earnings.
- Collective Bargaining Agreements: Agreements that influence wage payments.
Penalties for labor law noncompliance in Alabama wages
Up to $1,000Wage and hour violations
Violations of Alabama overtime laws carry fines up to $1,000 per violation under FLSA. That covers failure to pay overtime and paying below minimum wage.
Willful violations can also trigger criminal prosecution. First-offense fines reach $10,000. Subsequent violations can result in imprisonment.
Up to $10,000Child labor violations
Contractors who violate Alabama child labor laws face steep penalties under Ala. Code § 25-8-59. Employing minors in hazardous occupations draws the highest fines.
- $300 per violation: Less severe infractions like improper recordkeeping.
- $5,000-$10,000 per violation: Hazardous work conditions or employing minors without proper permits.
- Multiple violations affecting different employees may result in separate penalties per case.
Up to $165,514OSHA health and safety violations
OSHA adjusts penalties annually for inflation. 2026 confirmed per-violation maximums:
- $16,550 per violation for serious or other-than-serious violations.
- $16,550 per day for failure to abate hazards beyond the abatement date.
- $165,514 per violation for willful or repeated violations. Verify current figures at OSHA.gov/penalties – updated each January.
In Alabama, labor law violations are investigated and addressed by…
- Alabama Department of Labor (ADOL): Oversees unemployment benefits, wage disputes, and workplace safety for certain Alabama industries.
- U.S. Department of Labor (DOL) Wage and Hour Division: Enforces FLSA – minimum wage, overtime, and child labor.
- Occupational Safety and Health Administration (OSHA): Enforces federal workplace safety standards for all Alabama employers.
- Equal Employment Opportunity Commission (EEOC): Investigates workplace discrimination complaints.
- National Labor Relations Board (NLRB): Addresses collective bargaining and unfair labor practice violations.
Further details on other Alabama labor laws
Whistleblower protection in Alabama
Ala. Code § 36-25-24 protects only public employees from retaliation when reporting legal violations. Private-sector workers have no equivalent state-level whistleblower protection.
Smoking laws in Alabama
Under Ala. Code § 22-15A-5, contractors and employers can designate work areas as non-smoking. Smoking in common areas is prohibited unless the majority of employees in that area agree otherwise. Employers can declare any workplace entirely smoke-free.
Ala. Code § 22-15A-6 requires certain areas to stay smoke-free. These include child care facilities, schools, hospitals, public transportation, government buildings, libraries, and retail establishments (restaurants excluded).
Break time to express milk in Alabama
Ala. Code § 22-1-13 gives mothers the right to breastfeed anywhere they are authorized to be. Alabama has no separate state workplace breastfeeding law.
All FLSA-covered Alabama employers must comply with the federal PUMP Act. It requires reasonable break time and a private, non-bathroom space to express breast milk. As of December 29, 2025, rail carrier and motorcoach employees are also covered. A limited hardship exemption applies to certain rail crew members.
Note on HB 21: HB 21 stalled in the House Commerce and Small Business Committee. It did not pass the 2025 session. The federal PUMP Act remains the applicable standard for all Alabama employers.
Workers’ compensation in Alabama
The Alabama Workers’ Compensation Act (Ala. Code § 25-5-1, et seq.) governs Alabama workers compensation for most employers. Coverage is required for work-related injuries and occupational diseases. Benefits include medical expenses, lost wages, and rehabilitation.
Key points:
- Injury reporting: Employees must report injuries immediately. Late reporting can result in denial of benefits (Ala. Code § 25-5-78).
- Filing a claim: Claims must be filed within two years of injury (Ala. Code § 25-5-80).
- Retaliation protections: Employers cannot terminate employees for filing claims (Ala. Code § 25-5-11.1).
Gun laws in Alabama
Alabama law allows contractors and employers to prohibit concealed weapons on company property and job sites (Ala. Code § 13A-11-90(a)). Employers cannot prevent workers from storing firearms in their own vehicles. The vehicle must be parked legally. The firearm must be hidden or secured in a compartment.
As of January 1, 2023, employees may store pistols without a permit. The firearm must be hidden and the vehicle locked when unattended. Employers have no duty to inspect vehicles. They are immune from liability unless they commit an affirmative wrongful act (Ala. Code § 13A-11-91).
Childcare tax credits for employers and daycares
Act No. 2024-303 is now active. Alabama contractors and other employers can claim up to $600,000 annually for childcare-related expenses. Small businesses (25 or fewer employees) claim 100% of qualifying expenses; larger businesses claim 75%. Childcare facilities can receive up to $25,000 annually. Up to $2,000 per child enrolled in the Alabama Child Care Subsidy Program is available.
The program is capped at $15 million in 2025. That rises to $20 million by 2027. 25% is reserved for rural areas and small businesses.
Portable benefits for independent contractors
New as of December 31, 2025: The Alabama Portable Benefits Act (Act 2025-119 / SB86, Ala. Code § 25-1-70) makes Alabama the first state with fully tax-advantaged portable benefit accounts. These accounts are available to independent contractors and gig workers.
- Hiring parties may voluntarily contribute to contractor benefit accounts covering health insurance, disability, life insurance, and retirement.
- Contributions are 100% tax-deductible for the hiring party and excluded from the contractor’s gross income.
- Participation is optional. Contributions cannot be used as a factor in worker classification determinations.
Construction impact: Any Alabama contractor that engages subcontractors or independent contractors is directly affected. This is a new tax-efficient benefit option, not a mandate.
Adhering to labor laws strengthens construction employee management. Enhance trade business efficiency ex. electrical teams using contractor scheduling software tailored to construction operations manager needs, with seamless connections to QuickBooks and Gusto.
For more resources, see Montana Labor Laws, Nebraska Labor Laws, Nevada Break Laws, Nevada Labor Laws, and Nevada Overtime Law.
Alabama labor laws follow federal standards on most issues. No state minimum wage, no state overtime law, no adult break mandate. The FLSA governs all three.
For construction employers, this means federal FLSA rules set the floor. Alabama is a right-to-work and at-will state. The Alabama Workers’ Compensation Act and child labor restrictions under Ala. Code § 25-8 apply. Federal anti-discrimination laws enforced by the EEOC govern workplace discrimination.
Key 2026 updates: the overtime state income tax exemption expired July 1, 2025. The Public Employee Paid Parental Leave Act (SB199) took effect July 1, 2025. The Portable Benefits Act (SB86) took effect December 31, 2025. SB 171 proposes a $10/hour minimum wage for 2027 but has not passed.
Yes. Alabama is a right-to-work state under Ala. Code §§ 25-7-30 to 25-7-35A. Employment cannot be conditioned on union membership or payment of union dues. Employers cannot require workers to join or pay fees to a union.
Workers who are denied jobs or terminated in violation of these protections may take legal action. This applies across all industries, including construction.
No. The Alabama minimum wage defaults to the federal rate. Alabama does not have a state-mandated minimum wage. Employers follow $7.25 per hour. The 2016 Alabama Uniform Minimum Wage and Right-to-Work Act bars local governments from setting higher rates.
SB 171 (introduced January 2026) proposes a $10/hour state minimum wage. It would take effect January 1, 2027. Businesses with 50 or fewer employees would be exempt. It has not passed as of April 2026.
The tipped minimum wage is $2.13/hour under federal FLSA.
No. Alabama has no state law requiring meal or rest breaks for adult workers. Construction employers set their own break policies. The one exception: minors aged 14-15 are entitled to a 30-minute break for shifts exceeding 5 continuous hours. Under federal law, short breaks of 20 minutes or less that are voluntarily provided must be paid.
Alabama overtime laws defer to the federal FLSA. Under FLSA, Alabama employers owe non-exempt employees 1.5x their regular rate for hours over 40 in a workweek.
The current salary threshold is $684/week ($35,568/year). The Biden DOL’s 2024 rule would have raised it to $1,128/week. A Texas federal court vacated that rule in November 2024. It never took effect.
The Alabama state income tax exemption on overtime expired July 1, 2025. Overtime is now subject to Alabama state income tax. Separately, a federal provision (One Big Beautiful Bill Act) exempts overtime from federal income tax for eligible workers through 2028.
Under Alabama child labor laws, children under 14 cannot work, with limited exceptions for family-owned businesses. Those aged 14-15 may work up to 3 hours/day and 18 hours/week during school.
Outside school sessions: 8 hours/day and 40 hours/week. Permitted hours are 7 a.m. to 7 p.m. (9 p.m. in summer). They are entitled to a 30-minute break for shifts over 5 continuous hours. They cannot work in alcohol-serving establishments.
Employers must keep proof of age and time records for all employees under 19.
Alabama has no state law on final paycheck timing. Under FLSA, final wages are due on the next scheduled payday. This applies whether the worker quit or was let go.
The final paycheck must include all earned wages, including accrued vacation, bonuses, and commissions, unless company policy states otherwise. Lawful deductions are permitted as long as they don’t reduce pay below minimum wage for hours worked.
No. Alabama has no state law requiring private employers to provide paid or unpaid sick leave. Sick leave is entirely at the employer’s discretion. If offered, the employer must follow their established policy.
The 2025 Public Employee Paid Parental Leave Act (SB199) covers eligible public employees only. It is parental leave, not sick leave. Private-sector workers are not covered.
Alabama has no state anti-discrimination statute. Federal law enforced by the EEOC applies. Protected classes include: race, color, national origin, religion, sex, age (40+), disability, and genetic information. Bostock v. Clayton County (2020) remains binding law.
Title VII prohibits firing or refusing to hire anyone because of sexual orientation or gender identity. Note: the EEOC rescinded its 2024 harassment guidance on January 22, 2026. That does not change Title VII or Bostock.
Employers with 15+ employees are subject to most federal anti-discrimination laws; age discrimination rules apply to employers with 20+ employees.
FLSA wage violations cost contractors up to $1,000 per violation plus back wages owed. Willful violations can trigger criminal fines up to $10,000.
Child labor violations under Ala. Code § 25-8-59: $300–$10,000 per violation. OSHA violations: up to $16,550 (serious) and $165,514 (willful/repeated) — adjusted each January. The ADOL, U.S. DOL Wage and Hour Division, OSHA, and EEOC all enforce Alabama labor laws.
