Alabama State Minimum Wage

Author: Jason Coles

Updated On:

Updated On:

On January 1, 2023, the Alabama minimum wage remained the same as the previous year, $7.25 per hour – the statewide minimum wage rate since 2009.

The minimum wage situation here is unique, due to Alabama not having an active minimum wage law, therefore abiding by the federal minimum wage by default.

If you are a full-time worker on Alabama state minimum wage, your earnings could be as follows:

  • Daily Minimum Wage: $58.00 (based on an 8-hour day).
  • Weekly Minimum Wage: $290.00 (based on a 40-hour week).
  • Monthly Minimum Wage: $1,256.66 (based on a full-time month).
  • Yearly Minimum Wage: $15,080.00 (based on being paid 52 weeks per year).

You can download the following Alabama minimum wage earnings graphic for your reference, for free:

Alabama minimum wage earnings

Much to the potential disappointment of Alabama workers, the statewide minimum wage is not showing any signs of increasing as the years roll on.

This is not to say that most employees within the state are being paid the minimum wage. In fact, the average wage in Alabama is significantly higher.

Below is a graphic containing the minimum wage over the past several years, dating back to 2018 – as you can see, nothing has changed:

The city of Birmingham has been pursuing an ongoing battle with employees over increasing the city’s minimum wage – this worked in 2016 and the minimum wage was increased from $7.25 to $10.10.

Unfortunately, for workers in Birmingham, immediately after the increased minimum wage, the state legislature passed a law barring municipalities from setting their own minimum wages.

Essentially, this reversed the new law put into place for the minimum wage to increase. For more updates on the Alabama minimum wage and future increases.

Exemptions and Subminimum Wage Rates in Alabama

In addition to the regular minimum wage rate, there are a few Alabama state minimum wage exemptions that typically depend on your age or employment situation.

Here is a downloadable graphic showcasing the main minimum wage exemptions in Alabama:

Below are the various minimum wage exemptions with some situational examples:

Alabama Student Minimum Wage

The minimum wage for student employees in Alabama is 85% of the Alabama minimum wage, making their hourly pay $6.16 per hour in 2023.

This hourly rate is for any hours worked up to 20 hours per week. As a student employee, once you surpass 20 hours per week, you will be eligible to be paid the Alabama minimum wage rate of $7.25 per hour.

Being a student can be financially challenging, leading many students to pick up part-time jobs to make extra money while studying.

Despite a student minimum wage rate, many Alabama employers will not necessarily follow it and pay you equal to or more than the statewide minimum wage.

Many work-study programs are available at universities, which is a route many students go down. Still, coffee shop, cafe, bar, and restaurant jobs are commonly taken by students as they can work them into their class schedule.

Alabama Under 20 Minimum Wage

If you are under 20 years old in Alabama, federal law allows your employer to pay you as little as $4.25 per hour for your first 90 days of employment.

Once the 90-day period is over, you will be eligible to be paid the 2023 Alabama minimum wage of $7.25 per hour or potentially even more.

Fortunately for young workers, this is 90 calendar days and not 90 working days; therefore, it can be completed relatively quickly and within about three months.

Alabama Tipped Minimum Wage

If you are a tipped employee in Alabama (someone who receives regular tips as a part of their job) then you are eligible to be paid a minimum wage of $2.13 per hour, with a tip credit of $5.12 per hour, ensuring that you reach the statewide minimum wage regardless if you make enough hourly tips.

Alabama Overtime Minimum Wage

Once you work over 40 hours a week, you are eligible to be paid an overtime rate of 1.5 times your hourly wage for every hour you work past 40.

So, the overtime Alabama state minimum wage is $10.88 per hour, 1.5 times the minimum wage of $7.25 per hour.

Alabama Employment Types Exempt From Minimum Wage

If you are an employee working under one of the following job roles, you are also exempt from the Alabama minimum wage:

  • Executives
  • Administration employees
  • Professional employees
  • Specific computer-related employees
  • Outside sales employees

Minimum Wage Exemptions Table

Below is a table consisting of the Alabama minimum wage exemptions, including some historic rates for reference:

Idaho Minimum Wage Exemption20232022202120202019
Tipped Minimum Wage$2.13$2.13$2.13$2.13$2.13
Overtime Minimum Wage$10.88$10.88$10.88$10.88$10.88
Under 20 Minimum Wage$4.25$4.25$4.25$4.25$4.25
Student Minimum Wage$6.16$6.16$6.16$6.16$6.16

Alabama Minimum Wage History

The table below provides the current rate and history of Alabama’s minimum wage over the past 40+ years since 1983.

StateWage$ Wage Increase% Increase
Alabama Minimum Wage 2023$7.25$00%
Alabama Minimum Wage 2022$7.25$00%
Alabama Minimum Wage 2021$7.25$00%
Alabama Minimum Wage 2020$7.25$00%
Alabama Minimum Wage 2019$7.25$00%
Alabama Minimum Wage 2018$7.25$00%
Alabama Minimum Wage 2017$7.25$00%
Alabama Minimum Wage 2016$7.25$00%
Alabama Minimum Wage 2015$7.25$00%
Alabama Minimum Wage 2014$7.25$00%
Alabama Minimum Wage 2013$7.25$00%
Alabama Minimum Wage 2012$7.25$00%
Alabama Minimum Wage 2011$7.25$00%
Alabama Minimum Wage 2010$7.25$00%
Alabama Minimum Wage 2009$7.25$0.7010.7%
Alabama Minimum Wage 2008$6.55$00%
Alabama Minimum Wage 2007$5.85$0.70
Alabama Minimum Wage 2006$5.15$00%
Alabama Minimum Wage 2005$5.15$00%
Alabama Minimum Wage 2004$5.15$00%
Alabama Minimum Wage 2003$5.15$00%
Alabama Minimum Wage 2002$5.15$00%
Alabama Minimum Wage 2001$5.15$00%
Alabama Minimum Wage 2000$5.15$00%
Alabama Minimum Wage 1999$5.15$00%
Alabama Minimum Wage 1998$5.15$00%
Alabama Minimum Wage 1997$5.15$0.408.42%
Alabama Minimum Wage 1996$4.75$0.5011.76%
Alabama Minimum Wage 1995$4.25$00%
Alabama Minimum Wage 1994$4.25$00%
Alabama Minimum Wage 1993$4.25$00%
Alabama Minimum Wage 1992$4.25$00%
Alabama Minimum Wage 1991$4.25$0.4511.84%
Alabama Minimum Wage 1990$3.80$0.4513.43%
Alabama Minimum Wage 1989$3.35$00%
Alabama Minimum Wage 1988$3.35$00%
Alabama Minimum Wage 1987$3.35$00%
Alabama Minimum Wage 1986$3.35$00%
Alabama Minimum Wage 1985$3.35$00%
Alabama Minimum Wage 1984$3.35$00%
Alabama Minimum Wage 1983$3.35$00%

You can see when there were increases in the minimum wage, how much they were, and what percentage increase it represents each year.

Alabama Minimum Wage History for the Past 10+ Years – Downloadable PDF

Alabama Minimum Wage History – Downloadable PDF

Alabama Labor Law Poster and Department of Labor Contact Details

As an Alabama employer, you need to keep yourself compliant with the law. To do this, you need to display an Alabama Labor Law poster in a prominent place.

The good news is that you can acquire one of these posters for free from the Department of Labor website, and download the poster.

If you wish to contact the department directly, here are all of the contact details you need:

Department of Labor
649 Monroe St,
Montgomery, AL 36131
Telephone: (334) 309-9066

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Jason Coles

Jason Coles is the Founder of Foreign USA and its Chief Content Writer and Editor. Recognized as a prolific business plan writer by many prominent immigration attorneys in the U.S. who refer his services to their clients regularly, Jason has written over 1,320 business plans across the past 17+ years for start-up companies and franchises looking to expand their footprint in the United States. Jason is considered a seasoned expert in his field. He creates detailed business plans for his clients that include five-year financial projections, market and industry analysis reports, demographic studies, organizational charts, job descriptions, employee hiring plans, and more.