Alabama Minimum Wage 2026
Current rate, tipped employee rules, and what to do if you are underpaid.
Current minimum wage
$7.25/hr (federal minimum)
Alabama uses the federal minimum wage — no higher state rate has been enacted.
Federal vs state
Federal rate applies ($7.25/hr)
Last verified
2025
Who is covered by the Alabama minimum wage
The minimum wage applies to most employees in Alabama. Common exemptions include:
- •Certain agricultural or farm workers (federal FLSA exemptions may apply)
- •Tipped employees — a lower base rate may apply if tips close the gap
- •Student workers at certain educational institutions (may qualify for a subminimum rate)
- •Independent contractors — minimum wage laws do not apply to genuine contractors
Being paid below minimum wage?
- 1. Calculate the shortfall: hours worked × (minimum wage − actual pay).
- 2. Keep records: pay stubs, time records, and any written communications.
- 3. File a complaint with the Alabama Department of Labor or the US DOL Wage and Hour Division.
- 4. You may also bring a private lawsuit to recover up to 3 years of back pay plus liquidated damages.
Frequently asked questions
What is the minimum wage in Alabama in 2026?
The minimum wage in Alabama is $7.25/hr (federal minimum). Alabama has not set a state minimum wage above the federal rate, so the federal minimum wage of $7.25/hr applies.
Does the federal minimum wage apply in Alabama?
Yes. Alabama does not have a state minimum wage law that exceeds the federal rate. The federal minimum wage of $7.25/hr (set by the Fair Labor Standards Act) therefore applies. If the federal minimum wage is ever raised by Congress, that new rate would automatically apply in Alabama.
What is the minimum wage for tipped employees in Alabama?
Tipped employees in Alabama may be paid a lower "tipped minimum wage" under federal or state law, provided tips bring total hourly earnings up to the full minimum wage. If tips do not make up the difference, the employer must pay the shortfall. The specific tipped credit rules in Alabama are set by state law — check the Alabama Department of Labor for the current tipped rate.
Are there local minimum wages higher than Alabama's state rate?
Some cities and counties in Alabama may have enacted local minimum wages higher than the state rate. Where a local ordinance applies, employers must pay the highest of federal, state, or local rates. Check with your local city or county government for any applicable local minimum wage that may apply to your job.
What can I do if my employer pays me less than minimum wage in Alabama?
If your employer pays below the minimum wage in Alabama, you can: (1) file a wage complaint with the Alabama Department of Labor; (2) file a federal complaint with the US Department of Labor Wage and Hour Division; or (3) bring a private civil lawsuit to recover unpaid wages. You may be entitled to back pay for up to 2–3 years plus additional damages. Retaliation for filing a wage complaint is illegal. Visit the Alabama Department of Labor at https://labor.alabama.gov to start a claim.