Alabama Labor Law (2024 Guide)

Wage and Hour Laws

Alabama has a law prohibiting local governments from introducing employment benefit laws that state or federal laws don’t require. This includes laws relating to wages, work schedules, and leave. 

Minimum Wage

Alabama doesn’t have any state-level wage and hour laws. Employers subject to the federal Fair Labor Standards Act (FLSA) must comply with its minimum wage provisions.

The current federal minimum wage is $7.25 per hour. 

Tipped Minimum Wage

There are no state-level wage and hour laws in Alabama. FLSA-covered employers must follow its rules for tipped minimum wage.

Under the FLSA, employers can pay tipped employees a minimum wage of $2.13 if their tips and wages total $7.25. 

Overtime Laws

Alabama doesn’t have any state-level wage and hour laws. Employers covered by the FLSA must follow its overtime provisions.

The FLSA requires covered employers to pay nonexempt employees 1.5 times their regular rate of pay for every hour worked over 40 in a workweek (a fixed and recurring period of 168 hours). 

Some employees are exempt from FLSA overtime, even if their employer is covered. These exemptions include:

• Executive, administrative, and professional employees who earn at least $844 weekly.
• Outside salespersons. 
• Computer employees earning at least $844 weekly. 
• Farmworkers. 

As of January 1, 2024, overtime pay for hourly workers is exempt from state income tax. This law expires on June 29, 2025. 

Meal and Rest Breaks

Alabama has no meal or rest break laws, except for 14 and 15-year-old workers who must be given a 30-minute break when working more than 5 continuous hours. 

If an employer provides employees with breaks and is covered by the FLSA, any breaks of up to 20 minutes must be paid. 

Recordkeeping

There are no state-level wage and hour recordkeeping laws in Alabama. 

If the FLSA applies to an Alabama employer, the employer must keep payroll records, collective bargaining agreements, and sales and purchase records for at least 3 years. They must also retain wage computation records, like time cards and schedules, for at least 2 years. 

Employee Scheduling Laws

No laws in Alabama or under the FLSA regulate work schedules, except for federal limits on the number of hours workers under 16 can work. 

Local governments in Alabama can’t make scheduling laws that are stricter than state or federal laws.

Employee Compensation and Benefits

Reporting Time Pay

Alabama employers must pay employees for the hours they work. They don’t have to pay employees who attend work but are sent home immediately or early. 

Payday Frequency and Method

Alabama doesn’t have any laws regulating pay periods. 

Paystub Requirements

There are no laws in Alabama requiring employers to provide employees with regular paystubs. 

Wage Deductions and Garnishments

No Alabama laws regulate wage deductions. If the FLSA covers the employer, they can’t make deductions if doing so would cause the employee to earn less than the hourly minimum wage or affect their entitled overtime pay. 

Under Alabama law, wage garnishments relating to consumer debts are capped at whichever of the 2 following options is lower:

• 25% of an employee’s weekly disposable earnings.
• The amount by which the employee’s weekly disposable earnings surpass 30 times the FLSA minimum wage. 

Other garnishments are capped at 25% of an employee’s weekly disposable earnings. 

Alabama law protects employees from being fired due to child support or criminal restitution withholding orders.  

Federal law limits the garnishment amounts for child support, student loans, and federal taxes. These limits are:

• 50% of an employee’s weekly disposable earnings for child support where they support a spouse or other child—or 60% where they don’t. 
• 15% for federal student loan debts. 
• Varying amounts for federal taxes, depending on the employee’s deductions. 

Final Paycheck Laws

There are no Alabama laws regarding final paychecks. 

FLSA-covered employers must give employees their last paycheck the next regular payday. 

Workers’ Compensation

Alabama’s Workers’ Compensation Act requires employers with 5 or more employees to have workers’ compensation insurance. The Workers’ Compensation Division administers this law. 

There are some limited exceptions to the types of workers this law covers, including domestic employees working in private homes and farm employees. 

The workers’ compensation scheme provides benefits to workers who develop work-related injuries or illnesses. These benefits include:

• Reasonable medical expenses. 
• Temporary partial disability (from the 4th day of disability).
• Temporary total disability (from the 4th day of disability).
• Permanent partial body disability.
• Permanent disability.
• Death.

Workers’ compensation in Alabama is an exclusive remedy—a worker can’t receive compensation and sue an employer for their workplace injury or illness. 

Employees must report work-related injuries or illnesses verbally to their employer immediately or within 5 days. They have 90 days to provide written notice. In turn, employers must file the following documents with the Workers’ Compensation Division:

• WC Form 2 9/2006—First Report of Injury—within 15 days of the injury or illness. 
• WC Form 3—Supplementary Report—within 10 days of the first compensation payment. 
• WC Form 4—Claims Summary Form—within 10 days of compensation ending or a claim settlement. 

Workers’ compensation disputes can be referred to the Alabama Department of Labor. An ombudsman (a neutral mediator who helps resolve disputes) can help the parties mediate the matter. Otherwise, the parties can request a formal appeal hearing. 

A worker whose compensation claim has been denied can also file a civil lawsuit. They have 2 years from the date of 1) their injury or illness or 2) their last receipt of temporary total disability benefits—whichever is later. 

Unemployment Insurance

Alabama employees who lose their jobs or have their hours reduced may be entitled to unemployment benefits. 

Unemployment benefits are funded by employer taxes. Employers must pay tax on the first $8,000 paid to each employee. Specific tax rates vary from 0.59% to 6.19%, depending on how long the business has been operating. 

To be eligible for unemployment benefits, individuals must:

• Be able, available, and willing to work.
• Be actively looking for work.
• Be without work through no fault of their own.
• Have worked for at least 2 quarters in their qualifying period (called a base period) and meet specific income requirements during their base period. 

Individuals can file a benefits claim with the Department of Labor online or by phone. They must provide various types of information, including their social security number, driver’s license, and most recent dates of employment. 

Minimum weekly benefits are $45 and capped at $275. Individuals generally receive benefits for 14 to 20 weeks. 

Individuals who’ve had their claims for benefits denied can appeal the decision to the Department of Labor. The timeframes for this are 7 days if they received a decision in person and 15 days if they received the decision by mail. 

A Hearings Officer decides unemployment benefits appeals. Individuals can appeal Hearings Officers’ decisions to the Board of Appeals and then in court. 

Workplace Rights and Protections

Discrimination and Harassment

Alabama doesn’t have a general anti-discrimination law. Instead, employment discrimination and harassment are primarily covered by federal protections. 

For example, Title VII of the federal Civil Rights Act makes it unlawful for employers with 15 or more employees to discriminate against a candidate or employee based on:

• Race.
• Color.
• Religion.
• Sex, including pregnancy, sexual orientation, and gender identity.
• National origin.

Federal protections against disability, genetic information, and age (40+) discrimination also exist. Age discrimination laws apply only to employers with 20 or more employees. 

Individuals who believe a potential or current employer has discriminated against them must file a complaint with the Equal Employment Opportunity Commission (EEOC). Employees generally must go to the EEOC before they can file a civil lawsuit and usually must do so within 180 days of the discriminatory act. 

Alabama does have its own age discrimination law. This allows employees 40 years and older who’ve experienced this discrimination to start civil proceedings against an employer without first going to the EEOC. 

Alabama also has an equal pay act that requires employers to pay employees equal wages for equal work. 

Leave Laws

𐄂 Family and Medical Leave	There’s no Family and Medical Leave Act in Alabama.  However, the federal Family and Medical Leave Act (FMLA) applies to businesses in Alabama with at least 50 employees. Eligible employees are entitled to 12 weeks of unpaid leave each year. An employee can use this leave: • For bonding with a new child. • For their own serious health condition. • To care for an immediate family member with a serious health condition.  • To deal with matters relating to a family member’s military service. • To care for a family member who was seriously injured during active duty (up to 26 weeks’ leave is available in this case).  To access FMLA leave, an employee must: • Have worked for the employer for at least 12 months. • Have worked at least 1,250 hours in the last 12 months. • Work at a business location with at least 50 employees within a 75-mile radius.
𐄂 Paid Sick Leave	Alabama doesn’t have paid sick leave laws. Employers who choose to provide paid sick leave should comply with any relevant employment contract terms or business policies.
𐄂 Paid Family Leave	Alabama doesn’t require employers to provide paid family leave.
✔ Pregnancy and Parental Leave	Under the Adoption Promotion Act, Alabama employees are entitled to 12 weeks of unpaid leave to bond with a child during the year after their birth or adoption.  Like the FMLA, this law applies to employers with at least 50 employees. Employee eligibility requirements for this leave are the same as under the FMLA.  Employees must provide at least 30 days’ notice of this leave or, if this isn’t possible, notify their employer as soon as possible.  Alabama’s family leave runs concurrently with FMLA leave. This means that any family leave taken under state law also counts toward the federal 12-week FMLA entitlement.  If an employer offers paid leave for the birth of a child, they must also provide paid leave to adoptive parents. Employers must provide equivalent paid leave or 2 weeks paid leave—whichever is less—to adoptive parents. If both adoptive parents work for the same employer, only 1 is entitled to paid leave.
𐄂 Vacation and Personal Leave	Vacation or personal leave isn’t mandatory in Alabama.  Where it’s provided, employers should follow the relevant terms of their employment contracts or business policies.

Military, Jury Duty, and Other Mandatory Leave

There are several other types of mandatory leave in Alabama.

Military Leave	Employees who are members of the Alabama National Guard or Naval Militia or members of the Army, Navy, Marine Corps, Air Force, or Coast Guard Reserves are entitled to paid, job-protected leave.  This leave is capped at 168 hours per calendar year.  The federal Uniformed Services Employment and Reemployment Rights Act (USERRA) also applies to Alabama employees and offers more generous leave entitlements.
Jury Duty Leave	Employers must give employees leave to attend jury duty. To access this leave, employees must provide a copy of their summons to their employer within 1 working day of receiving it.  This leave is paid. However, employers can deduct any compensation employees receive for jury duty from their wages.  Employers are prohibited from retaliating against employees who take this type of leave.
Victims of Crime Leave	An employer can’t terminate an employee who’s a victim of a crime and takes leave to give evidence or reasonably participate in the preparation of the criminal proceedings.
Voting Leave	Employees can take up to 1 hour of voting leave if they provide reasonable notice to their employer. This leave doesn’t have to be paid, and the employer can specify when the employee will take it.   Employers can refuse this leave if the polls open at least 2 hours before the employee starts work or stay open 1 hour after their work ends.

Child Labor Laws

Under Alabama’s child labor laws, employers can’t employ workers under 14. There’s a limited exception for children who work for their parents in cases where the parent is the sole owner of the business and supervises the child. 

Employers must:

• Apply for a Child Labor Certificate for employees aged 14 to 17. These certificates cost $15 per business location.
• Keep records of minor employees, including their Employee Information Form, proof of age, and time records—with their start and end times, total daily hours worked, and break times.
• Keep a list of all 14- and 15-year-old employees. (Previously, employers had to obtain Eligibility to Work forms for these employees. This requirement ended on June 1, 2024.)

A 30-minute break is mandatory for 14 or 15-year-old employees who work more than 5 consecutive hours. 

Employers who fail to comply with Alabama’s child labor laws may receive civil penalties. These can be between $300 to $10,000. 

	14 and 15-year-olds	16, 17, and 18-year-olds
When school is in session	Can’t work: • During school hours • More than 3 hours on a school day • More than 8 hours on a non-school day • More than 6 days a week • More than 18 hours a week Before 7am or after 7pm	Those enrolled in school can’t work between 10pm and 5am on the night before a school day
When school isn’t in session	Can’t work: • More than 8 hours a day • More than 6 days a week • More than 40 hours a week • Before 7am or after 9pm	No restrictions
Limits on types of work	Minors under 15 can’t work in certain occupations or activities, including: • Occupations requiring the use of commercial laundry equipment • Paint manufacturing • Activities that take place in a lumberyard	All minors under 18 are prohibited from working in certain occupations, including: • Occupations within adult establishments • Demolition • Roofing or scaffolding • Occupations requiring the operation of any power-driven machine for bakery, woodworking, or paper products
	Complete lists of prohibited occupations for minors in Alabama can be found here.
Establishments that serve alcohol for consumption onsite	• Only employees aged 21 and over can serve alcoholic beverages for consumption onsite.  • Employees at least 16 years of age can work in these environments as busboys, janitors, dishwashers, cooks, hostesses, or seaters. • 14 and 15-year-olds can’t work anywhere that serves alcohol for consumption onsite.

Workplace Safety and Health

Alabama has no workplace safety and health laws or a state plan approved by the federal Occupational Safety and Health Administration (OSHA). Instead, the federal Occupational Safety and Health (OSH) Act applies to most private-sector employees in Alabama. 

Key employer responsibilities under the OSH Act include:

• Providing a safe workplace for employees that complies with OSH Act requirements. 
• Using measures to warn employees of potential workplace hazards. 
• Posting an OSHA poster in the workplace. 
• Providing employee safety training in a language (or languages) all employees understand. 
• Reporting any workplace fatalities within 8 hours and any inpatient hospitalizations, amputations, or eye losses within 24 hours to OSHA. 
• Maintain records of workplace illnesses and injuries. 

In turn, employees must:

• Comply with OSHA rules and standards. 
• Use personal safety and protective equipment provided by their employer. 

Employees can report any workplace safety concerns to OSHA for investigation. Employers are prohibited from retaliating against employees who do this. 

Labor Union Regulations

Alabama is a right-to-work state. Employers can’t require employees to join a union, demand they pay union fees, or prevent them from joining a union as conditions of their employment. 

Employment Contracts and Severance

Employment Contract Laws

Alabama is an at-will employment state. As a result, employers and employees can end their employment at any time and for no or any reason (except illegal reasons, like discrimination). 

To be enforceable, employment contracts must be in writing. However, contracts for work performed in less than a year can be verbal agreements and still be legally valid. 

Non-compete and non-solicitation agreements (restrictive covenants) are enforceable in Alabama if they meet specific requirements. These agreements must:

1. Relate to a protectable interest, such as a trade secret or customer list.
2. Be in writing and signed by the employer and employee.
3. Be backed up by something of value, such as a paid job.  

Restrictive covenants that are too broad won’t be enforced. 

The Federal Trade Commission (FTC) announced a final rule on May 7, 2024, that effectively prohibits using non-compete agreements. While the rule is set to start on September 4, 2024, legal challenges may postpone or prevent its enforcement. This regulation will cover most employees across the US, so keep an eye out for any developments. 

Severance Pay

No laws in Alabama require employers to pay severance pay. 

Additional Laws That Might Apply to You

Mass layoffs	When a business lays off 25 or more employees, they must notify the Unemployment Compensation Call Center. This applies to layoffs of 25 or more employees who work at the same location and are laid off for at least 7 days.
Polygraph testing	Employers can’t require employees to take polygraph tests.
Drug-free workplaces	Employers who introduce a drug-free workplace program—including drug testing—qualify for a 5% discount on their workers’ compensation insurance premium.

COVID-19 Related Laws and Regulations

It appears that all COVID-related orders issued by the Governor have now ended. 

Navigating Legal Issues and Resources

If you’re an employer, the Department of Labor has various resources to help you navigate employment law in Alabama. 

If you’re looking for free legal advice regarding employment law issues, here are some websites that may be of assistance:

• The American Bar Association’s Alabama Free Legal Answers site.
• Justia Lawyers lists legal aid and pro bono services by city and county.
• The Alabama State Bar’s Volunteer Lawyers Program.

Disclaimer 

The information presented on this website about labor laws in Alabama is a summary for informational purposes only and is not intended as legal advice. However, laws and regulations regularly change and may vary depending on individual circumstances. While we have made every effort to ensure the information provided is up to date and reliable, we cannot guarantee its completeness, accuracy, or applicability to your specific situation. Therefore, we strongly recommend that readers seek guidance from their legal department or a qualified attorney to ensure compliance with applicable laws and regulations. Please note that we cannot be held liable for any actions taken or not taken based on the information presented on this website.