This note covers minimum wage, overtime, breaks, final pay, pay frequency, worker classification, tip credits, and enforcement for Alabama employers and workers. Each answer says whether a rule comes from Alabama law or from the federal Fair Labor Standards Act, and where Alabama has no rule on a point, it says so.
What is the minimum wage?
Alabama sets no state minimum wage rate, so an Alabama worker covered by the Fair Labor Standards Act is generally owed the federal minimum wage of $7.25 an hour . That rate is federal law, not an Alabama rate. It applies to an employee who, in any workweek, is engaged in commerce or in the production of goods for commerce, or who is employed in an enterprise engaged in commerce or in the production of goods for commerce .
Federal law also allows a lower wage for new young workers. An employer may pay an employee not less than $4.25 an hour during the first 90 consecutive calendar days after the employee is first employed by that employer , but only if the employee has not reached age 20 . An employer may not displace employees, including by reducing their hours, wages, or employment benefits, to hire workers at that wage . A violation of the youth-wage rules is treated as a violation of the federal anti-retaliation provision , for which an employer is liable for appropriate legal or equitable relief, including employment, reinstatement, promotion, lost wages, and an equal amount as liquidated damages .
Alabama's statute on the subject is the Alabama Uniform Minimum Wage and Right-to-Work Act . Despite the words Minimum Wage in its title, it sets no wage rate at all . What it does is bar counties, cities, and other political subdivisions from requiring an employer to provide any wage or other employment benefit, including paid or unpaid leave, vacation, or a work schedule, that state or federal law does not require . Any local ordinance, policy, rule, or other mandate that conflicts with that bar is void .
The Legislature also declares that it occupies the entire field of regulating wages, leave, and other employment benefits, to the complete exclusion of any local mandate, except as that article or another state statute expressly authorizes . A county's or city's authority to regulate wages, leave, or other benefits may not be inferred from its proprietary authority, home rule status, or any other inherent or general power . The upshot is that, subject to the article's exceptions and any express statutory authorization, no Alabama county or city can require private employers to pay a local minimum wage above what state or federal law requires .
The article has limits on its reach. It does not apply to state employers or employees in state service, to public employers and employees of state or local educational institutions, or to a local mandate that relates specifically to a county's or city's own employees or contractors .
For a worker who is outside federal coverage, the sections cited here set no minimum wage .
The preemption rule is short and absolute about conflicting local mandates:
Sources for this answer
The Alabama Department of Labor states that Alabama has no state laws governing wage and hour issues.
Alabama does not have any state laws governing wage and hour issues.
See Alabama Department of Labor, Wage and Hour Info
Under the Fair Labor Standards Act, an employer must pay each covered employee engaged in commerce, or employed in an enterprise engaged in commerce, at least $7.25 an hour.
Every employer shall pay to each of his employees who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, wages at the following rates: (1) except as otherwise provided in this section, not less than- (A) $5.85 an hour, beginning on the 60th day after May 25, 2007; (B) $6.55 an hour, beginning 12 months after that 60th day; and (C) $7.25 an hour, beginning 24 months after that 60th day;
See 29 U.S.C. § 206(a)(1)(C)
The article containing Ala. Code 25-7-41 and 25-7-45 is titled the Alabama Uniform Minimum Wage and Right-to-Work Act.
This article shall be known and cited as the Alabama Uniform Minimum Wage and Right-to-Work Act.
See Ala. Code § 25-7-40
An Alabama county, municipality, or other political subdivision may not require an employer to provide any wage or other employment benefit that state or federal law does not require.
A county, municipality, or any other political subdivision of this state shall not enact or administer any ordinance, policy, rule, or other mandate requiring an employer to provide any employee, class of employees, or independent contractor with any employment benefit, including, but not limited to, paid or unpaid leave, vacation, wage, or work schedule, that is not required by state or federal law, and shall not require an employer to compensate an employee, class of employees, or independent contractor for any vacation or other form of leave for which state or federal law does not require the employee, class of employees, or independent contractor to be compensated.
See Ala. Code § 25-7-41(b)
Any local mandate inconsistent with Ala. Code 25-7-41 is void.
Any ordinance, policy, rule, or other mandate of a county, municipality, or any other political subdivision of this state that is inconsistent with this section is void.
See Ala. Code § 25-7-41(c)
Except as the article or another state statute expressly authorizes, the Alabama Legislature occupies the entire field of regulating employer-provided wages, leave, and employment benefits, to the exclusion of local mandates.
Except as otherwise provided in this article or as expressly authorized by a statute of this state, the Legislature hereby occupies and preempts the entire field of regulation in this state touching in any way upon collective bargaining under federal labor laws or the wages, leave, or other employment benefits provided by an employer to an employee, class of employees, or independent contractor to the complete exclusion of any policy, ordinance, rule, or other mandate promulgated or enforced by any county, municipality, or other political subdivision of this state.
See Ala. Code § 25-7-45(b)
The authority of an Alabama county, municipality, or other political subdivision to regulate employer-provided wages, leave, or other benefits may not be inferred from its proprietary authority, home rule status, or any other inherent or general power.
(c) The authority of a county, municipality, or other political subdivision of this state to regulate collective bargaining under federal labor laws or the wages, leave, or other benefits provided by an employer to an employee, class of employees, or independent contractor shall not be inferred from its proprietary authority, home rule status, or any other inherent or general power.
See Ala. Code § 25-7-45(c)
The Alabama Uniform Minimum Wage and Right-to-Work Act does not apply to state service, public educational employers and employees, or local mandates relating specifically to a local government's own employees or contractors.
Notwithstanding any provision of this article to the contrary, nothing in this article shall apply to those state employers or employees in state service as defined in Section 36-26-2, or to public employers and employees of state or local educational institutions or systems, or to any ordinance, rule, policy, or other mandate enacted by a county, municipality, or political subdivision of this state relating specifically to public employees or a class of employees employed by or independent contractors hired by the county, municipality, or any other political subdivision.
See Ala. Code § 25-7-43
Under the Fair Labor Standards Act, an employer may pay an employee not less than $4.25 an hour, in lieu of the regular federal minimum wage, during the first 90 consecutive calendar days after the employee is first employed by that employer.
(1) In lieu of the rate prescribed by subsection (a)(1), any employer may pay any employee of such employer, during the first 90 consecutive calendar days after such employee is initially employed by such employer, a wage which is not less than $4.25 an hour.
See 29 U.S.C. § 206(g)(1)
Apart from a separate age limit stated for one territory, the federal new-employee wage in 29 U.S.C. 206(g) applies only to an employee who has not reached age 20.
(5) This subsection shall only apply to an employee who has not attained the age of 20 years, except in the case of the wage applicable in Puerto Rico, 25 years, until such time as the Board described in paragraph (2) terminates in accordance with section 2149 of title 48.
See 29 U.S.C. § 206(g)(5)
An employer may not displace employees, including by reducing their hours, wages, or employment benefits, in order to hire individuals at the federal new-employee wage.
(3) No employer may take any action to displace employees (including partial displacements such as reduction in hours, wages, or employment benefits) for purposes of hiring individuals at the wage authorized in paragraph (1) or (2).
See 29 U.S.C. § 206(g)(3)
An employer that violates the federal new-employee wage subsection, 29 U.S.C. 206(g), is treated as having violated 29 U.S.C. 215(a)(3).
(4) Any employer who violates this subsection shall be considered to have violated section 215(a)(3) of this title.
See 29 U.S.C. § 206(g)(4)
An employer that violates 29 U.S.C. 215(a)(3) is liable for appropriate legal or equitable relief, including employment, reinstatement, promotion, payment of lost wages, and an additional equal amount as liquidated damages.
Any employer who violates the provisions of section 215(a)(3) or 218d of this title shall be liable for such legal or equitable relief as may be appropriate to effectuate the purposes of section 215(a)(3) or 218d of this title, including without limitation employment, reinstatement, promotion, and the payment of wages lost and an additional equal amount as liquidated damages.
See 29 U.S.C. § 216(b)
When is overtime owed?
Alabama has no overtime rule of its own for private employers, daily or weekly, so overtime for an Alabama worker covered by the Fair Labor Standards Act follows the general federal rule: at least one and one-half times the regular rate for hours worked over 40 in a workweek .
The general federal rule in section 207(a)(1) counts hours by the workweek, not by the day . The Alabama Department of Labor states that Alabama has no state laws governing wage and hour issues, so no Alabama rule adds daily overtime or double time . One federal alternative uses a daily threshold: a hospital or an institution primarily engaged in caring for the sick, the aged, or the mentally ill who reside on the premises may, by an agreement reached with the employee before the work is performed, use a 14-day work period instead of the workweek, if it pays at least one and one-half times the regular rate for work over eight hours in any workday and over 80 hours in the 14-day period .
Sources for this answer
The Alabama Department of Labor states that Alabama has no state laws governing wage and hour issues.
Alabama does not have any state laws governing wage and hour issues.
See Alabama Department of Labor, Wage and Hour Info
Under the Fair Labor Standards Act, a covered employer must pay at least one and one-half times the regular rate for hours worked over forty in a workweek.
Except as otherwise provided in this section, no employer shall employ any of his employees who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, for a workweek longer than forty hours unless such employee receives compensation for his employment in excess of the hours above specified at a rate not less than one and one-half times the regular rate at which he is employed.
See 29 U.S.C. § 207(a)(1)
Under the Fair Labor Standards Act, a hospital or residential care institution may, by agreement with the employee before the work is performed, use a fourteen-day work period instead of the workweek for overtime if it pays at least one and one-half times the regular rate for hours over eight in a workday and over eighty in that period.
No employer engaged in the operation of a hospital or an establishment which is an institution primarily engaged in the care of the sick, the aged, or the mentally ill or defective who reside on the premises shall be deemed to have violated subsection (a) if, pursuant to an agreement or understanding arrived at between the employer and the employee before performance of the work, a work period of fourteen consecutive days is accepted in lieu of the workweek of seven consecutive days for purposes of overtime computation and if, for his employment in excess of eight hours in any workday and in excess of eighty hours in such fourteen-day period, the employee receives compensation at a rate not less than one and one-half times the regular rate at which he is employed.
See 29 U.S.C. § 207(j)
Are breaks required?
Alabama requires no general meal or rest breaks for adult employees . A worker aged 14 or 15 may not be employed for more than five hours in a row without a documented interval of at least 30 minutes for a meal or rest period . A meal or rest period of less than 30 minutes does not interrupt a continuous period of work .
That rule reaches only workers who are 14 or 15 years old. It does not extend to older minors or to adults . The cited section does not say whether the 30-minute interval must be paid .
The federal regulations cited here address how breaks are treated for pay when an employer gives them . Rest periods of about 5 to 20 minutes are common in industry and must be counted as hours worked . Bona fide meal periods are not worktime , but only if the employee is completely relieved from duty for the purpose of eating regular meals , and 30 minutes or more is ordinarily long enough .
Sources for this answer
The Alabama Department of Labor states that Alabama has no state laws governing wage and hour issues.
Alabama does not have any state laws governing wage and hour issues.
See Alabama Department of Labor, Wage and Hour Info
An Alabama employer may not employ a 14- or 15-year-old for more than five continuous hours without a documented meal or rest interval of at least 30 minutes.
No person 14 or 15 years of age shall be employed for more than five hours continuously without a documented interval of at least 30 minutes for a meal or rest period.
See Ala. Code § 25-8-38(e)
Under Alabama's child-labor statute, a meal or rest period of less than 30 minutes does not interrupt a continuous period of work.
Any meal or rest period of less than 30 minutes shall not be considered to interrupt a continuous period of work.
See Ala. Code § 25-8-38(e)
Under the federal regulation, short rest periods of about 5 to 20 minutes are common in industry.
Rest periods of short duration, running from 5 minutes to about 20 minutes, are common in industry.
See 29 C.F.R. § 785.18
29 C.F.R. § 785.18 states that short rest periods are customarily paid for as working time and must be counted as hours worked.
They promote the efficiency of the employee and are customarily paid for as working time. They must be counted as hours worked.
See 29 C.F.R. § 785.18
Under the federal regulation, a bona fide meal period requires that the employee be completely relieved from duty to eat regular meals.
The employee must be completely relieved from duty for the purposes of eating regular meals.
See 29 C.F.R. § 785.19(a)
29 C.F.R. § 785.19(a) states that bona fide meal periods are not worktime.
Bona fide meal periods are not worktime.
See 29 C.F.R. § 785.19(a)
Under the federal regulation, 30 minutes or more is ordinarily long enough for a bona fide meal period.
Ordinarily 30 minutes or more is long enough for a bona fide meal period.
See 29 C.F.R. § 785.19(a)
When is final pay due?
Alabama has no general statute setting a deadline for paying final wages when a private-sector employee separates, and no general statute setting a penalty for paying final wages late .
A narrower Alabama pay-schedule rule does reach some employers, though it is not tied to separation. A transportation public service corporation doing business in Alabama with 50 or more employees must pay employees in full at least once every two weeks or twice each calendar month, and each payment must include all amounts due for work performed up to no less than 15 days before the payment . A transportation corporation that violates that rule is guilty of a misdemeanor and, on conviction, is fined not less than $25 nor more than $250 for each offense, with each day's violation against each employee counted as a separate offense .
The federal remedy under the Fair Labor Standards Act is measured by unpaid minimum wages or unpaid overtime compensation, plus an equal amount as liquidated damages . Under the federal rule, overtime earned in a workweek generally must be paid on the regular payday for the period in which that workweek ends . When the correct amount cannot be determined until after the regular pay period, the employer must pay it as soon after that period as is practicable . Payment may not be delayed longer than is reasonably necessary to compute and arrange it, and never beyond the next payday after the computation can be made .
Under Alabama law, actions to recover wages, overtime, damages, fees, or penalties accruing under laws respecting the payment of wages must be brought within two years . A federal minimum wage or overtime claim follows the federal deadline instead: two years after the cause of action accrued, or three years for a willful violation .
Sources for this answer
The Alabama Department of Labor states that Alabama has no state laws governing wage and hour issues.
Alabama does not have any state laws governing wage and hour issues.
See Alabama Department of Labor, Wage and Hour Info
A transportation public service corporation doing business in Alabama with 50 or more employees must pay employees in full at least every two weeks or twice each calendar month, including all amounts due for work performed up to no less than 15 days before payment.
Every public service corporation engaged in transportation doing business in this state, employing as many as 50 or more employees, shall be required to make full payment to employees for services performed as often as once every two weeks, or twice during each calendar month, and such payment or settlement shall include all amounts due for labor or services performed up to not less than 15 days previous to the time of payment.
See Ala. Code § 37-8-270
A transportation public service corporation that violates Ala. Code 37-8-270 is guilty of a misdemeanor punishable by a fine of $25 to $250 for each offense, with each day's violation against each employee a separate offense.
Any public service corporation engaged in transportation who violates this section shall be guilty of a misdemeanor and upon conviction thereof shall be fined not less than $25.00 nor more than $250.00 for each offense, and each day’s violation against each employee shall constitute a separate offense.
See Ala. Code § 37-8-270
An employer that violates the federal minimum wage or overtime provisions is liable for the unpaid amounts plus an equal amount as liquidated damages.
Any employer who violates the provisions of section 206 or section 207 of this title shall be liable to the employee or employees affected in the amount of their unpaid minimum wages, or their unpaid overtime compensation, as the case may be, and in an additional equal amount as liquidated damages.
See 29 U.S.C. § 216(b)
Under the federal regulation, overtime earned in a workweek generally must be paid on the regular payday for the period in which that workweek ends.
The general rule is that overtime compensation earned in a particular workweek must be paid on the regular pay day for the period in which such workweek ends.
See 29 C.F.R. § 778.106
Under the federal regulation, when the correct overtime amount cannot be determined until after the regular pay period, the employer satisfies the Act by paying the excess overtime as soon after that period as is practicable.
When the correct amount of overtime compensation cannot be determined until some time after the regular pay period, however, the requirements of the Act will be satisfied if the employer pays the excess overtime compensation as soon after the regular pay period as is practicable.
See 29 C.F.R. § 778.106
Under the federal regulation, an employer may delay overtime payment only as long as reasonably necessary to compute and arrange it, and never beyond the next payday after the computation can be made.
Payment may not be delayed for a period longer than is reasonably necessary for the employer to compute and arrange for payment of the amount due and in no event may payment be delayed beyond the next payday after such computation can be made.
See 29 C.F.R. § 778.106
In Alabama, actions to recover wages, overtime, damages, fees, or penalties under laws respecting the payment of wages must be brought within two years.
All actions for the recovery of wages, overtime, damages, fees, or penalties accruing under laws respecting the payment of wages, overtime, damages, fees, and penalties must be brought within two years.
See Ala. Code § 6-2-38(m)
29 U.S.C. § 255(a) requires a Fair Labor Standards Act action for unpaid minimum wages, unpaid overtime compensation, or liquidated damages to be commenced within two years after the cause of action accrued, or within three years for a willful violation.
Any action commenced on or after May 14, 1947, to enforce any cause of action for unpaid minimum wages, unpaid overtime compensation, or liquidated damages, under the Fair Labor Standards Act of 1938, as amended [29 U.S.C. 201 et seq.], the Walsh-Healey Act, or the Bacon-Davis Act 1 — (a) if the cause of action accrues on or after May 14, 1947—may be commenced within two years after the cause of action accrued, and every such action shall be forever barred unless commenced within two years after the cause of action accrued, except that a cause of action arising out of a willful violation may be commenced within three years after the cause of action accrued;
See 29 U.S.C. § 255(a)
How often must workers be paid?
Alabama has no general pay-frequency rule and no pay-stub requirement for private employers . The Alabama pay-frequency rule cited here covers only transportation public service corporations doing business in Alabama with 50 or more employees, which must pay in full at least once every two weeks or twice each calendar month .
For those transportation employers, each payment must include everything due for work performed up to no less than 15 days before the payment . Section 37-8-270 applies to transportation public service corporations meeting its employee threshold .
A transportation corporation that violates the rule is guilty of a misdemeanor and, on conviction, is fined not less than $25 nor more than $250 for each offense; each day's violation against each employee is a separate offense .
Under the federal rule, the Fair Labor Standards Act does not require overtime to be paid weekly . As a general rule, overtime earned in a workweek must be paid on the regular payday for the period in which that workweek ends . When the correct amount cannot be determined until after the regular pay period, the employer must pay it as soon after that period as is practicable . Payment may not be delayed longer than is reasonably necessary to compute and arrange it, and never beyond the next payday after the computation can be made .
What the law does require is recordkeeping, which is a different duty from giving employees a pay stub:
Alabama's equal-pay statute requires an employer to adopt the U.S. Department of Labor's recordkeeping rules for the Fair Labor Standards Act, 29 C.F.R. Part 516 .
An employer of anyone under 19 must keep a completed Employee Information Form and proof of age on the premises . An employer that does not use that form must instead keep on the premises documents containing each such employee's name, home address, telephone number, date of birth, date of hire, and school of attendance . An employer of anyone under 19 must keep time records for the preceding 60 days on the premises, showing hours worked each day, starting and ending times, and break times . The employer must retain all records that section 25-8-38 requires, including the employee information, proof of age, and time records, for at least one year preceding the last day of the last recorded work period, either on the premises or at a centralized location .
An employer of anyone under 19 must also keep posted, in a conspicuous place where that person works, the printed notice stating the maximum hours persons under 19 may work each day . Employing a person for longer in a day than the notice states, or at any other time than it states, is a violation of the child labor chapter . An employer required to obtain a Child Labor Certificate must keep it posted in a public and conspicuous location at all times .
An employer that keeps the last 60 days of time records for workers under 19 only at a central office, and not on the premises where they work, does not meet the Alabama duty to keep those records on the premises .
Sources for this answer
The Alabama Department of Labor states that Alabama has no state laws governing wage and hour issues.
Alabama does not have any state laws governing wage and hour issues.
See Alabama Department of Labor, Wage and Hour Info
A transportation public service corporation doing business in Alabama with 50 or more employees must pay employees in full at least every two weeks or twice each calendar month.
Every public service corporation engaged in transportation doing business in this state, employing as many as 50 or more employees, shall be required to make full payment to employees for services performed as often as once every two weeks, or twice during each calendar month, and such payment or settlement shall include all amounts due for labor or services performed up to not less than 15 days previous to the time of payment.
See Ala. Code § 37-8-270
A transportation public service corporation that violates Ala. Code 37-8-270 is guilty of a misdemeanor punishable by a fine of $25 to $250 for each offense, with each day's violation against each employee a separate offense.
Any public service corporation engaged in transportation who violates this section shall be guilty of a misdemeanor and upon conviction thereof shall be fined not less than $25.00 nor more than $250.00 for each offense, and each day’s violation against each employee shall constitute a separate offense.
See Ala. Code § 37-8-270
The Fair Labor Standards Act does not require overtime compensation to be paid weekly.
There is no requirement in the Act that overtime compensation be paid weekly.
See 29 C.F.R. § 778.106
Under the federal regulation, overtime earned in a workweek generally must be paid on the regular payday for the period in which that workweek ends.
The general rule is that overtime compensation earned in a particular workweek must be paid on the regular pay day for the period in which such workweek ends.
See 29 C.F.R. § 778.106
Under the federal regulation, when the correct overtime amount cannot be determined until after the regular pay period, the employer satisfies the Act by paying the excess overtime as soon after that period as is practicable.
When the correct amount of overtime compensation cannot be determined until some time after the regular pay period, however, the requirements of the Act will be satisfied if the employer pays the excess overtime compensation as soon after the regular pay period as is practicable.
See 29 C.F.R. § 778.106
Under the federal regulation, an employer may delay overtime payment only as long as reasonably necessary to compute and arrange it, and never beyond the next payday after the computation can be made.
Payment may not be delayed for a period longer than is reasonably necessary for the employer to compute and arrange for payment of the amount due and in no event may payment be delayed beyond the next payday after such computation can be made.
See 29 C.F.R. § 778.106
Under Alabama's equal-pay statute, an employer must adopt the federal Fair Labor Standards Act recordkeeping rules in 29 C.F.R. Part 516.
An employer shall adopt the rules for record keeping established by the United States Department of Labor for the Fair Labor Standards Act, 29 C.F.R. Part 516.
See Ala. Code § 25-1-30(e)
Subject to subsection (c), an Alabama employer of anyone under 19 must keep a completed Employee Information Form and proof of age on the premises where that person is employed.
(b) Subject to subsection (c), each employer shall keep on the premises at which any person under 19 years of age is employed a completed Employee Information Form and proof of age.
See Ala. Code § 25-8-38(b)
An Alabama employer that does not use the Employee Information Form must keep on the premises documents showing each under-19 employee's name, home address, telephone number, date of birth, date of hire, and school of attendance.
Any employer who does not utilize the Employee Information Form shall maintain on the premises documents containing the employee’s name, home address, telephone number, date of birth, date of hire, and school of attendance for each employee under 19 years of age.
See Ala. Code § 25-8-38(c)
An Alabama employer of anyone under 19 must keep 60 days of time records on the work premises showing daily hours, start and end times, and break times.
Each employer shall also keep on the premises at which any person under 19 years of age is employed, in electronic or photostatic form, time records for the 60 days preceding the last day of the last work period recorded for each employee under 19 years of age, which shall state the number of hours worked each day, starting and ending times, and break times.
See Ala. Code § 25-8-38(b)
An Alabama employer of anyone under 19 must maintain the records required by Ala. Code 25-8-38 for at least one year, either on the work premises or at a centralized location.
Each employer shall also maintain, either on the premises where the employee under 19 years of age is employed or at a centralized location, the records required by this section for not less than 1 year preceding the last day of the last work period recorded for each employee under 19 years of age.
See Ala. Code § 25-8-38(b)
An Alabama employer must keep posted, in a conspicuous place where anyone under 19 is employed, a printed notice stating the maximum number of hours persons under 19 may work on each day of the week as set out in Ala. Code 25-8-36.
(a) Every employer shall keep posted in a conspicuous place where any person under 19 years of age is employed, a printed notice stating the maximum number of hours persons under 19 may be permitted to work on each day of the week as set out in Section 25-8-36.
See Ala. Code § 25-8-38(a)
Under Ala. Code 25-8-38(a), employing a person for a longer time in any day than the posted notice states, or at any time other than the notice states, is a violation of Alabama's child labor chapter.
The employment of any person for a longer time period in any day so stated, or at any time other than as stated in the printed form of notice, shall be deemed a violation of this chapter.
See Ala. Code § 25-8-38(a)
An Alabama employer required to obtain a Child Labor Certificate from the department must keep the certificate posted at a public and conspicuous location at all times.
(f) Any employer required to obtain a Child Labor Certificate from the department shall keep the certificate posted at a public and conspicuous location at all times.
See Ala. Code § 25-8-38(f)
Employee or independent contractor?
Because Alabama has no general minimum wage or overtime statute, employee status for minimum wage and overtime purposes is decided under the Fair Labor Standards Act's economic-realities test, which asks whether an Alabama worker is economically dependent on the potential employer for work or in business for themself .
Subject to the statute's listed exceptions, the Fair Labor Standards Act defines an employee as any individual employed by an employer , and to employ includes to suffer or permit to work .
The Alabama Supreme Court stated in Ex parte Curry that Alabama courts look to the right of control, either actually exercised or reserved , in a case about a denial of worker's compensation benefits rather than a wage-and-hour claim .
Two narrower Alabama provisions also bear on classification:
The Alabama Uniform Minimum Wage and Right-to-Work Act defines an independent contractor, for purposes of that article, as a self-employed individual who does not meet the article's definition of employee and who meets the Internal Revenue Service definition of independent contractor .
When a hiring party contributes to a portable benefit account as compensation, an Alabama court may not treat that contribution as any element of an employment relationship, including for workers' compensation liability .
Sources for this answer
The Alabama Department of Labor states that Alabama has no state laws governing wage and hour issues.
Alabama does not have any state laws governing wage and hour issues.
See Alabama Department of Labor, Wage and Hour Info
The Alabama Supreme Court in Ex parte Curry states that, in deciding whether an employer-employee relationship exists, Alabama courts look to the right of control, either actually exercised or reserved.
It is well established law in this state that, in determining whether an employer-employee relationship exists, the court looks to the right of control, either actually exercised or reserved.
See Ex parte Curry, 607 So. 2d 230 (Ala. 1992)
The Alabama Supreme Court in Ex parte Curry states that it reviewed whether the lower courts erred in denying worker's compensation benefits.
We granted the petition for certiorari review to determine whether the Court of Civil Appeals erred in affirming the trial court's order denying worker's compensation benefits in this case.
See Ex parte Curry, 607 So. 2d 230 (Ala. 1992)
Under the Fair Labor Standards Act, an employee is, with stated exceptions, any individual employed by an employer.
Except as provided in paragraphs (2), (3), and (4), the term “employee” means any individual employed by an employer.
See 29 U.S.C. § 203(e)(1)
Under the Fair Labor Standards Act, to employ includes to suffer or permit to work.
“Employ” includes to suffer or permit to work.
See 29 U.S.C. § 203(g)
29 C.F.R. § 795.105(a) states that whether a worker is an employee or independent contractor under the Fair Labor Standards Act turns on the economic realities of the relationship and whether the worker is economically dependent on the potential employer for work or in business for themself.
A determination of whether a worker is an employee or independent contractor under the Act focuses on the economic realities of the worker's relationship with the worker's potential employer and whether the worker is either economically dependent on the potential employer for work or in business for themself.
See 29 C.F.R. § 795.105(a)
For purposes of the Alabama Uniform Minimum Wage and Right-to-Work Act, an independent contractor is a self-employed individual who is not an employee under that article and who meets the Internal Revenue Service definition of independent contractor.
INDEPENDENT CONTRACTOR. A self-employed individual who does not meet the definition of employee, as provided in this article, but otherwise does meet the definition of independent contractor as defined by the Internal Revenue Service.
See Ala. Code § 25-7-41(a)(5)
An Alabama court may not treat a hiring party's contribution to a portable benefit account as any element of an employment relationship.
Where a hiring party contributes to a portable benefit account as a form of compensation, the contribution may not be construed by an Alabama court as any element of an employment relationship, including, but not limited to, for purposes of imposing liability on the hiring party under the Alabama Workers’ Compensation Act, Chapter 5 of Title 25.
See Ala. Code § 25-1-71(b)
Is a tip credit allowed?
Alabama has no tip rule of its own, so for an Alabama employer covered by the Fair Labor Standards Act the only tip credit available is the federal one, subject to its federal conditions .
The federal credit applies only to a tipped employee, meaning an employee in an occupation in which the employee customarily and regularly receives more than $30 a month in tips . The credit may be taken only for hours the employee works in an occupation in which the employee qualifies as a tipped employee . The employer may not take the credit unless it has informed its tipped employees in advance of the cash wage it will pay, the amount of the credit (which may not exceed the tips the employee actually receives), the rule that employees keep all tips except in a pool limited to employees who customarily and regularly receive tips, and the fact that the credit does not apply to an employee who has not been informed . Tip pooling among employees who customarily and regularly receive tips is still allowed .
Under the federal formula, the tip credit equals the federal minimum wage minus the cash wage paid, and the cash wage must be at least $2.13 an hour ; with the $7.25 federal minimum wage , the largest credit is $5.12 an hour. If an employee's tips fall short of the maximum tip credit amount, the employer must pay the balance so that wages and tips together reach at least the minimum wage . An employer may not keep employees' tips for any purpose, including letting managers or supervisors keep any portion, whether or not it takes a tip credit . An employer that unlawfully keeps tips is liable to the affected employees for any tip credit it took and all tips it kept, plus an equal additional amount as liquidated damages .
Sources for this answer
The Alabama Department of Labor states that Alabama has no state laws governing wage and hour issues.
Alabama does not have any state laws governing wage and hour issues.
See Alabama Department of Labor, Wage and Hour Info
The federal tip credit is unavailable unless the employer informs the tipped employee of the tip provisions and the employee retains all tips, apart from pooling among customarily tipped employees.
The preceding 2 sentences shall not apply with respect to any tipped employee unless such employee has been informed by the employer of the provisions of this subsection, and all tips received by such employee have been retained by the employee, except that this subsection shall not be construed to prohibit the pooling of tips among employees who customarily and regularly receive tips.
See 29 U.S.C. § 203(m)(2)(A)
An employer may not take the federal tip credit unless it has informed its tipped employees in advance of the cash wage, the credit amount and its actual-tip limit, the tip-retention and pooling rules, and the credit's unavailability to an employee who has not been informed.
Pursuant to section 3(m)(2)(A), an employer is not eligible to take the tip credit unless it has informed its tipped employees in advance of the employer's use of the tip credit of the provisions of section 3(m)(2)(A) of the Act, i.e.: The amount of the cash wage that is to be paid to the tipped employee by the employer; the additional amount by which the wages of the tipped employee are increased on account of the tip credit claimed by the employer, which amount may not exceed the value of the tips actually received by the employee; that all tips received by the tipped employee must be retained by the employee except for a tip pooling arrangement limited to employees who customarily and regularly receive tips; and that the tip credit shall not apply to any employee who has not been informed of the requirements in this section.
See 29 C.F.R. § 531.59(b)
Under the Fair Labor Standards Act, a tipped employee is one who customarily and regularly receives more than $30 a month in tips.
“Tipped employee” means any employee engaged in an occupation in which he customarily and regularly receives more than $30 a month in tips.
See 29 U.S.C. § 203(t)
Under the federal regulation, an employer may take the tip credit only for hours the employee works in an occupation in which the employee qualifies as a tipped employee.
As indicated in § 531.51, the tip credit may be taken only for hours worked by the employee in an occupation in which the employee qualifies as a “tipped employee.”
See 29 C.F.R. § 531.59(b)
When a tipped employee's tips are less than the maximum tip credit amount, the employer must pay the balance needed to reach the minimum wage.
If the employee received less than the maximum tip credit amount in tips, the employer is required to pay the balance so that the employee receives at least the minimum wage with the defined combination of wages and tips.
See 29 C.F.R. § 531.59(b)
29 C.F.R. § 531.59(a) states that the federal tip credit equals the minimum wage minus the cash wage paid, which must be at least $2.13, if the employer meets all the requirements of section 3(m)(2)(A).
In determining compliance with the wage payment requirements of the Act, under the provisions of section 3(m)(2)(A) the amount paid to a tipped employee by an employer is increased on account of tips by an amount equal to the formula set forth in the statute (minimum wage required by section 6(a)(1) of the Act minus cash wage paid (at least $2.13)), provided that the employer satisfies all the requirements of section 3(m)(2)(A).
See 29 C.F.R. § 531.59(a)
Under the Fair Labor Standards Act, an employer must pay each covered employee engaged in commerce, or employed in an enterprise engaged in commerce, at least $7.25 an hour.
Every employer shall pay to each of his employees who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, wages at the following rates: (1) except as otherwise provided in this section, not less than- (A) $5.85 an hour, beginning on the 60th day after May 25, 2007; (B) $6.55 an hour, beginning 12 months after that 60th day; and (C) $7.25 an hour, beginning 24 months after that 60th day;
See 29 U.S.C. § 206(a)(1)(C)
An employer may not keep employees' tips, including through managers or supervisors, whether or not it takes a tip credit.
An employer may not keep tips received by its employees for any purposes, including allowing managers or supervisors to keep any portion of employees' tips, regardless of whether or not the employer takes a tip credit.
See 29 U.S.C. § 203(m)(2)(B)
An employer that unlawfully keeps employees' tips in violation of 29 U.S.C. 203(m)(2)(B) is liable to the affected employees for any tip credit taken and all tips unlawfully kept, plus an equal additional amount as liquidated damages.
Any employer who violates section 203(m)(2)(B) of this title shall be liable to the employee or employees affected in the amount of the sum of any tip credit taken by the employer and all such tips unlawfully kept by the employer, and in an additional equal amount as liquidated damages.
See 29 U.S.C. § 216(b)
How is it enforced?
Alabama has no general state minimum wage or overtime statute, so covered Alabama workers bring minimum wage and overtime claims under the Fair Labor Standards Act, which lets one or more employees sue any employer in any federal or state court of competent jurisdiction .
Under federal law, the statute authorizes the following:
Damages. An employer that violates the minimum wage or overtime provisions is liable for the unpaid minimum wages or overtime, plus an equal additional amount as liquidated damages .
Collective actions. Employees may sue for themselves and for other employees similarly situated . An employee is a party plaintiff to such an action only if the employee gives written consent to become a party and that consent is filed in the court where the action is brought .
Federal deadline. A federal action for unpaid minimum wages, unpaid overtime, or liquidated damages must be commenced within two years after the cause of action accrued, or within three years for a willful violation .
Fees and costs. The court must award the plaintiff a reasonable attorney's fee and the costs of the action, paid by the defendant, on top of any judgment .
Department of Labor actions. The Secretary of Labor may supervise payment of unpaid minimum wages or overtime, and an employee who agrees to accept that payment waives, once paid in full, the right to sue for those wages and an equal amount as liquidated damages . The Secretary may also sue to recover unpaid minimum wages or overtime and an equal amount as liquidated damages . An employee's right to bring or join a private action for those amounts ends when the Secretary files such a suit seeking them, unless the Secretary's action is dismissed without prejudice on the Secretary's motion . A private right to sue or to join an action also ends when the Secretary files a complaint under section 217 seeking to restrain further delay in paying that employee's unpaid minimum wages or overtime .
Civil penalties. A person who repeatedly or willfully violates the federal minimum wage or overtime provisions is subject to a civil penalty for each violation . A person who unlawfully keeps employees' tips is subject to a civil penalty for each violation, as the Secretary determines appropriate, in addition to liability to the employees for the tips kept and an equal amount as liquidated damages . In setting a penalty, the size of the business and the gravity of the violation are considered .
Under Alabama law, the rules on this point are:
State-law deadline. Actions to recover wages, overtime, damages, fees, or penalties accruing under laws respecting the payment of wages must be brought within two years . A federal claim carries the federal periods stated above .
Equal pay. An employer, including the state and its political subdivisions, may not pay an employee less than employees of another sex or race for equal work in the same establishment, on jobs requiring equal skill, effort, education, experience, and responsibility and performed under similar working conditions, except where the payment is made under a seniority system, a merit system, a system that measures earnings by quantity or quality of production, or a differential based on any factor other than sex or race .
Wage history. An employer may not refuse to interview, hire, promote, or employ an applicant, or retaliate against one, because the applicant does not provide wage history .
Equal-pay remedy. An employer that violates the equal-pay or wage-history rule is liable to the affected employee for the wages lost because of the violation, plus interest .
Pleading. An employee who files an equal-pay claim must plead with particularity both that the employee was paid less than someone for equal work despite equal skill, effort, education, experience, and responsibility, and that the applicable wage schedule is not correlated to any condition the statute permits .
No double recovery. An employee who recovers under the Alabama equal-pay remedy and also recovers under federal law for the same violation must return to the employer the smaller of the two recoveries .
Equal-pay deadline. An action for that remedy may be started no later than two years after the discriminatory act .
Sources for this answer
The Alabama Department of Labor states that Alabama has no state laws governing wage and hour issues.
Alabama does not have any state laws governing wage and hour issues.
See Alabama Department of Labor, Wage and Hour Info
Employees may sue any employer under the Fair Labor Standards Act in federal or state court, for themselves and for similarly situated employees.
An action to recover the liability prescribed in the preceding sentences may be maintained against any employer (including a public agency) in any Federal or State court of competent jurisdiction by any one or more employees for and in behalf of himself or themselves and other employees similarly situated.
See 29 U.S.C. § 216(b)
29 U.S.C. § 255(a) requires a Fair Labor Standards Act action for unpaid minimum wages, unpaid overtime compensation, or liquidated damages to be commenced within two years after the cause of action accrued, or within three years for a willful violation.
Any action commenced on or after May 14, 1947, to enforce any cause of action for unpaid minimum wages, unpaid overtime compensation, or liquidated damages, under the Fair Labor Standards Act of 1938, as amended [29 U.S.C. 201 et seq.], the Walsh-Healey Act, or the Bacon-Davis Act 1 — (a) if the cause of action accrues on or after May 14, 1947—may be commenced within two years after the cause of action accrued, and every such action shall be forever barred unless commenced within two years after the cause of action accrued, except that a cause of action arising out of a willful violation may be commenced within three years after the cause of action accrued;
See 29 U.S.C. § 255(a)
An employer that violates the federal minimum wage or overtime provisions is liable for the unpaid amounts plus an equal amount as liquidated damages.
Any employer who violates the provisions of section 206 or section 207 of this title shall be liable to the employee or employees affected in the amount of their unpaid minimum wages, or their unpaid overtime compensation, as the case may be, and in an additional equal amount as liquidated damages.
See 29 U.S.C. § 216(b)
In a Fair Labor Standards Act action, the court must award the plaintiff a reasonable attorney's fee and costs, paid by the defendant.
The court in such action shall, in addition to any judgment awarded to the plaintiff or plaintiffs, allow a reasonable attorney's fee to be paid by the defendant, and costs of the action.
See 29 U.S.C. § 216(b)
An employee becomes a party plaintiff in a Fair Labor Standards Act collective action only by filing written consent in the court where the action is brought.
No employee shall be a party plaintiff to any such action unless he gives his consent in writing to become such a party and such consent is filed in the court in which such action is brought.
See 29 U.S.C. § 216(b)
An employee who agrees to accept payment of unpaid minimum wages or overtime supervised by the Secretary of Labor waives, upon payment in full, the right to sue for those wages and an equal amount as liquidated damages.
The Secretary is authorized to supervise the payment of the unpaid minimum wages or the unpaid overtime compensation owing to any employee or employees under section 206 or section 207 of this title, and the agreement of any employee to accept such payment shall upon payment in full constitute a waiver by such employee of any right he may have under subsection (b) of this section to such unpaid minimum wages or unpaid overtime compensation and an additional equal amount as liquidated damages.
See 29 U.S.C. § 216(c)
The Secretary of Labor may sue in any court of competent jurisdiction to recover unpaid minimum wages or overtime and an equal amount as liquidated damages.
The Secretary may bring an action in any court of competent jurisdiction to recover the amount of unpaid minimum wages or overtime compensation and an equal amount as liquidated damages.
See 29 U.S.C. § 216(c)
An employee's right to bring or join a private Fair Labor Standards Act action for unpaid minimum wages, overtime, or liquidated damages ends when the Secretary of Labor files a complaint seeking those amounts, unless the Secretary's action is dismissed without prejudice on the Secretary's motion.
The right provided by subsection (b) to bring an action by or on behalf of any employee to recover the liability specified in the first sentence of such subsection and of any employee to become a party plaintiff to any such action shall terminate upon the filing of a complaint by the Secretary in an action under this subsection in which a recovery is sought of unpaid minimum wages or unpaid overtime compensation under sections 206 and 207 of this title or liquidated or other damages provided by this subsection owing to such employee by an employer liable under the provisions of subsection (b), unless such action is dismissed without prejudice on motion of the Secretary.
See 29 U.S.C. § 216(c)
An employee's right to bring or join a private Fair Labor Standards Act action ends when the Secretary of Labor files a complaint under 29 U.S.C. 217 seeking to restrain further delay in paying that employee's unpaid minimum wages or overtime.
The right provided by this subsection to bring an action by or on behalf of any employee, and the right of any employee to become a party plaintiff to any such action, shall terminate upon the filing of a complaint by the Secretary of Labor in an action under section 217 of this title in which (1) restraint is sought of any further delay in the payment of unpaid minimum wages, or the amount of unpaid overtime compensation, as the case may be, owing to such employee under section 206 or section 207 of this title by an employer liable therefor under the provisions of this subsection or (2) legal or equitable relief is sought as a result of alleged violations of section 215(a)(3) or 218d of this title.
See 29 U.S.C. § 216(b)
A person who repeatedly or willfully violates the federal minimum wage or overtime provisions is subject to a civil penalty for each violation.
(2) Any person who repeatedly or willfully violates section 206 or 207 of this title, relating to wages, shall be subject to a civil penalty not to exceed $1,100 for each such violation.
See 29 U.S.C. § 216(e)(2)
A person who unlawfully keeps employees' tips in violation of 29 U.S.C. 203(m)(2)(B) is subject to a civil penalty for each violation, as the Secretary determines appropriate, in addition to liability to the affected employees for the tips kept and an equal amount as liquidated damages.
Any person who violates section 203(m)(2)(B) of this title shall be subject to a civil penalty not to exceed $1,100 for each such violation, as the Secretary determines appropriate, in addition to being liable to the employee or employees affected for all tips unlawfully kept, and an additional equal amount as liquidated damages, as described in subsection (b).
See 29 U.S.C. § 216(e)(2)
In determining the amount of a civil penalty under 29 U.S.C. 216(e), the appropriateness of the penalty to the size of the business and the gravity of the violation must be considered.
(3) In determining the amount of any penalty under this subsection, the appropriateness of such penalty to the size of the business of the person charged and the gravity of the violation shall be considered.
See 29 U.S.C. § 216(e)(3)
In Alabama, actions to recover wages, overtime, damages, fees, or penalties under laws respecting the payment of wages must be brought within two years.
All actions for the recovery of wages, overtime, damages, fees, or penalties accruing under laws respecting the payment of wages, overtime, damages, fees, and penalties must be brought within two years.
See Ala. Code § 6-2-38(m)
An Alabama employer, including the state and its political subdivisions, may not pay employees less than employees of another sex or race for equal work in the same establishment, on jobs requiring equal skill, effort, education, experience, and responsibility and performed under similar working conditions, except under a seniority system, a merit system, a system measuring earnings by quantity or quality of production, or a differential based on any factor other than sex or race.
An employer, including the state or any of its political subdivisions, including public bodies, may not pay any of its employees at wage rates less than the rates paid to employees of another sex or race for equal work within the same establishment on jobs the performance of which requires equal skill, effort, education, experience, and responsibility, and performance under similar working conditions, except where the payment is made pursuant to any of the following: (1) A seniority system. (2) A merit system. (3) A system that measures earnings by quantity or quality of production. (4) A differential based on any factor other than sex or race.
See Ala. Code § 25-1-30(b)
An Alabama employer may not refuse to interview, hire, promote, or employ an applicant, or retaliate against one, for not providing wage history.
An employer shall not refuse to interview, hire, promote, or employ an applicant for employment, or retaliate against an applicant for employment because the applicant does not provide wage history.
See Ala. Code § 25-1-30(c)
An Alabama employer that violates the equal-pay or wage-history rule is liable to the affected employee for the wages lost, plus interest.
Any employer who violates subsection (b) or (c) is liable to the employee affected in an amount equal to the wages, and interest thereon, of which the employee is deprived by reason of the violation.
See Ala. Code § 25-1-30(d)
An employee who brings an Alabama equal-pay claim must plead with particularity that the employee was paid less than someone for equal work despite equal qualifications and that the wage schedule is not correlated to any condition the statute permits.
(f) An employee who files a claim against his or her employer for a violation of subsection (b) must plead with particularity in demonstrating both of the following: (1) The employee was paid less than someone for equal work despite possessing equal skill, effort, education, experience, and responsibility. (2) The applicable wage schedule at issue was or is not correlated to any conditions permissible under subsection (b).
See Ala. Code § 25-1-30(f)
An employee who recovers under Ala. Code 25-1-30(d) and also obtains an additional recovery under federal law for the same violation must return to the employer the lesser of the two recoveries.
(g) If an employee recovers an amount under subsection (d), and also files a complaint or brings an action pursuant to federal law which results in an additional recovery under federal law for the same violation, the employee shall return to the employer the amount recovered under subsection (d), or the amount recovered under federal law, whichever is less.
See Ala. Code § 25-1-30(g)
An action under Ala. Code 25-1-30(d) must be started no later than two years after the discriminatory act.
A civil action brought pursuant to subsection (d) may be commenced no later than two years after the act of discrimination giving rise to a cause of action.
See Ala. Code § 25-1-30(h)