Alabama has no minimum wage law of its own. Employers covered by the federal Fair Labor Standards Act (FLSA) must pay at least the federal minimum, $7.25 an hour [1]. And because of a 2016 state law, no Alabama city or county can require a higher wage [4].
At a glance
- Minimum wage, 2026
- $7.25 an hour, the federal rate [1]
- Scheduled 2027 increase
- None; only Congress can change it [1]
- Tipped workers
- $2.13 cash wage; tips must bring pay to $7.25 [2]
- Local minimum wages
- Barred by state law [4]
- Where to complain
- U.S. Wage and Hour Division, 1-866-487-9243 [5]
| Worker | Minimum |
|---|---|
| Most covered workers | $7.25 an hour |
| Tipped workers, cash wage | $2.13 an hour, plus up to $5.12 in tips |
| Workers under 20, first 90 days | $4.25 an hour |
Why it’s $7.25
The U.S. Department of Labor lists Alabama under “no state minimum wage law.” Employers subject to the FLSA must pay the federal rate of $7.25 [1]. There’s no scheduled increase, so the number stays the same in 2027 unless Congress changes it.
Who federal law covers
The FLSA covers any business with at least $500,000 in yearly sales, plus hospitals, schools and public agencies regardless of size [3]. Even at a smaller business, you can be covered individually if your work involves interstate commerce, like handling goods from other states [3].
Why cities can’t set their own
In 2016, Alabama passed a law saying a county, city or other local government “shall not enact or administer” any rule requiring employers to provide a wage or other benefit that state or federal law doesn’t require [4]. Any local rule that conflicts with it is void [4]. So a city ordinance can’t raise the minimum wage for private employers.
Tipped workers
A tipped employee is someone who customarily receives more than $30 a month in tips [2]. For these workers, an Alabama employer can pay as little as $2.13 an hour in cash and count up to $5.12 an hour in tips [2].
Cash wage plus tips still has to reach $7.25 for every hour worked. If tips fall short, the employer has to make up the difference [3]. The employer must tell you ahead of time that it’s using the tip credit, and tips belong to you, except under a valid tip pool [3].
Lower rates and exemptions
Federal law has a few lower rates and exemptions [3]:
- Youth wage: workers under 20 can be paid $4.25 an hour for their first 90 consecutive calendar days. Employers can’t replace other workers to use this rate.
- Students, learners and some workers with disabilities can be paid less, but only with a certificate from the Wage and Hour Division.
- Exempt jobs include executive, administrative and professional employees, outside salespeople, some seasonal amusement and recreation workers, workers on small farms, and casual babysitters and companions for the elderly.
Exemptions are narrow, and a job title alone doesn’t make someone exempt [3].
If you’re paid less than you’re owed
Because Alabama has no state minimum wage law, minimum wage and overtime claims go through federal law.
File a complaint. Call the U.S. Department of Labor’s Wage and Hour Division at 1-866-487-9243. Complaints are confidential: the agency may not reveal your name or even that a complaint exists [5]. The division works with you to decide whether to investigate [5].
Or sue. The Department of Labor or a worker can recover back wages plus an equal amount as liquidated damages . The deadline is generally two years, or three years for a willful violation [3].
Other states
Comparing Alabama with nearby states? See the minimum wage in every state on BestAmerica.
Sources
- U.S. Department of Labor: State minimum wage laws (Alabama)
- U.S. Department of Labor: Minimum wages for tipped employees by state
- U.S. Department of Labor: Handy Reference Guide to the Fair Labor Standards Act
- Code of Alabama § 25-7-41: Limits on local wage and benefit mandates
- U.S. Department of Labor Wage and Hour Division: How to file a complaint
Common questions
What is the minimum wage in Alabama in 2026?
$7.25 an hour. Alabama has no state minimum wage law, so employers covered by the federal Fair Labor Standards Act must pay the federal minimum. No 2027 increase is scheduled; it changes only if Congress raises the federal rate.
Can Birmingham or another Alabama city set a higher minimum wage?
No. A 2016 state law bars counties, cities and other local governments from requiring employers to pay any wage or benefit that state or federal law doesn't require, and voids local rules that conflict with it.
How do I report unpaid minimum wage or overtime in Alabama?
File a complaint with the U.S. Department of Labor's Wage and Hour Division by calling 1-866-487-9243. Complaints are confidential, and employers can't retaliate. Under federal law you can recover back wages plus an equal amount in damages, usually going back two years, or three if the violation was willful.