As of January 1, 2021, the minimum wage in Alabama has stayed the same as the previous year. The minimum wage has remained the same in Alabama since 2009, following the federal minimum wage of $7.25 per hour.
Alabama’s minimum wage is unique, they don’t currently have an active minimum wage law, which means that they must abide by the federal minimum wage by default. It is not uncommon for states in the US to follow the federal minimum wage, currently, 21 out of the 50 US states follow the federal minimum wage.
Did the Alabama Minimum Wage Go Up?
The graphic below highlights the Alabama minimum wage over the past several years. The minimum wage did not go up and remains at $7.25 per hour in 2021.
There are many considerations when it comes to the minimum wage in Alabama
- Employees who earn $30 a month (at least) in tips, must be paid a minimum of $2.13 per hour, that amount plus tips must accumulate to $7.25 per hour.
- The Fair Labor Standards Act allows all employees under the age of 20 years old to be paid a minimum of $4.25 per hour for their first 90 days of employment. After the 90 days of employment are over, the employer must pay the employee the full minimum wage.
- Full-time students may be paid a sub-minimum wage rate of 75% of the applicable minimum wage.
Alabama Minimum Wage 2021
The state of Alabama hasn’t changed its minimum wage for over 10 years – since 2009. Fortunately for residents of Alabama, most will be paid the same or more than the federal minimum wage.
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 reversing the new law put into place for the minimum wage to increase. For more updates on the Alabama minimum wage and future increases, take a look at the Alabama Department of Labor website.
Are you interested in starting a company in Alabama?
If you would like to register a new business in Alabama, check out our ultimate guide on How to Register a Business in Alabama.
There are many interesting facts about Alabama that you probably haven’t heard of. Feel free to check out a comprehensive list of them that also includes some very important economic facts if you are looking to start your own business or franchise or get a job in the state.
Alabama Minimum Wage History
The table below provides the history of Alabama’s minimum wage over the years since 2008. You can see when there were increases in the minimum wage, how much they were, and what percentage increase it represents.
The latest news on the minimum wage in Alabama is that the U.S. House of Representatives passed a bill that would raise the federal minimum wage to $15 by 2025. The Raise the Wage Act passed 231-199, mostly along party lines, and the bill includes increasing the Alabama minimum wage from $7.25 per hour to $8.40 per hour, and then gradually over the next several years, to $15 per hour. After 2025 it would be tied to median wages to account for inflation. Unfortunately, it faces an uphill battle in the Senate where it is unlikely to pass through legislation.
|State||Wage||Year||$ Wage Increase||% Increase|
|Alabama Minimum Wage 2021||$7.25||2021||$0||0%|
|Alabama Minimum Wage 2020||$7.25||2020||$0||0%|
|Alabama Minimum Wage 2019||$7.25||2019||$0||0%|
|Alabama Minimum Wage 2018||$7.25||2018||$0||0%|
|Alabama Minimum Wage 2017||$7.25||2017||$0||0%|
|Alabama Minimum Wage 2016||$7.25||2016||$0||0%|
|Alabama Minimum Wage 2015||$7.25||2015||$0||0%|
|Alabama Minimum Wage 2014||$7.25||2014||$0||0%|
|Alabama Minimum Wage 2013||$7.25||2013||$0||0%|
|Alabama Minimum Wage 2012||$7.25||2012||$0||0%|
|Alabama Minimum Wage 2011||$7.25||2011||$0||0%|
|Alabama Minimum Wage 2010||$7.25||2010||$0||0%|
|Alabama Minimum Wage 2009||$7.25||2009||$0.70||10.7%|
|Alabama Minimum Wage 2008||$6.55||2008||$0||0%|
Alabama minimum wage history for the past 10+ years – downloadable PDF below
Alabama Minimum Wage History – Downloadable PDF
EIN Number Alabama
As an Alabama business owner and employer, or someone that is looking to register an LLC or an incorporated company in Alabama with the goal of hiring employees, now, or in the future, you will need to have an Alabama EIN number.
An EIN is also known as an Employer Identification Number and is issued by the internal revenue service (IRS). We have created a guide on how to get your Alabama EIN with the IRS, and it includes links to the appropriate sources and forms and the differences between whether you are a U.S. citizen or a foreign national applying for an Alabama EIN.