Alabama State Minimum Wage

As of January 1, 2023, the Alabama state minimum wage 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.

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).
• Yearly Minimum Wage: $15,080.00 (based on being paid 52 weeks per year).

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 2023.

You can view and download the Alabama state minimum wage labor law poster for 2022-2023 here at no charge. Employers must display an official poster outlining the requirements of the Fair Labor Standards Act (FLSA), ensuring that accurate employee time and pay records are kept.

Alabama State Minimum Wage for 2023

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.

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

The latest news on the Alabama state minimum wage 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.

Alabama minimum wage history for the past 10+ years – downloadable PDF below

Alabama Minimum Wage History – Downloadable PDF

Alabama Minimum Wage Exemptions

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. 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.