Minimum wage in Alabama in 2027
$7.25 per hour1
per hourGeneral rate from July 24, 2009 · set by United States
Year 2027
Rates in force during 2027
| Applies to | Rate | Effective | Until |
|---|---|---|---|
StandardSourceThe federal minimum wage is $7.25 per hour effective July 24, 2009.
Verified September 26, 2026 | $7.25July 24, 2009 – current | July 24, 2009 | current |
2 rates in force
Rates by worker type, industry and employer size
Alabama has no rules of its own on record; these are the rules of United States that apply here.
| Applies to | Rate | Cash wage | Max tip credit | Effective |
|---|---|---|---|---|
Tipped employees · customarily and regularly receives more than $30 a month in tipsSourceAn employer must pay a tipped worker at least $2.13 per hour under the FLSA. An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour. The maximum tip credit that an employer can currently claim is $5.12 per hour: ($7.25 - $2.13 direct (or cash) wage = $5.12).
Verified September 26, 2026 | $7.25July 24, 2009 | $2.13 | $5.12 | July 24, 2009 |
Youth · under 20 years old, first 90 consecutive calendar days of employmentSourceThe 1996 Amendments to the FLSA allow employers to pay a youth minimum wage of not less than $4.25 an hour to employees who are under 20 years of age during the first 90 consecutive calendar days after initial employment.
Verified September 26, 2026 | $4.25October 1, 1996 | — | — | October 1, 1996 |
1990 to 2026
History of the United States rate
Each step is a rate row with its own quoted source.
Show the history as a table
| Applies to | Rate | Effective | Until |
|---|---|---|---|
StandardSourceThe 2007 amendments increased the minimum wage to $5.85 per hour effective July 24, 2007; $6.55 per hour effective July 24, 2008; and $7.25 per hour effective July 24, 2009.
Verified September 26, 2026 | $6.55July 24, 2008 – July 24, 2009 | July 24, 2008 | July 24, 2009 |
StandardSourceThe 2007 amendments increased the minimum wage to $5.85 per hour effective July 24, 2007; $6.55 per hour effective July 24, 2008; and $7.25 per hour effective July 24, 2009.
Verified September 26, 2026 | $5.85July 24, 2007 – July 24, 2008 | July 24, 2007 | July 24, 2008 |
StandardSourceThe 1996 amendments increased the minimum wage to $4.75 an hour on October 1, 1996, and to $5.15 an hour on September 1, 1997.
Verified September 26, 2026 | $5.15September 1, 1997 – July 24, 2007 | September 1, 1997 | July 24, 2007 |
StandardSourceThe 1996 amendments increased the minimum wage to $4.75 an hour on October 1, 1996, and to $5.15 an hour on September 1, 1997.
Verified September 26, 2026 | $4.75October 1, 1996 – September 1, 1997 | October 1, 1996 | September 1, 1997 |
StandardSourceThe minimum wage was raised to $3.80 an hour beginning April 1, 1990, and to $4.25 an hour beginning April 1, 1991.
Verified September 26, 2026 | $4.25April 1, 1991 – October 1, 1996 | April 1, 1991 | October 1, 1996 |
StandardSourceThe minimum wage was raised to $3.80 an hour beginning April 1, 1990, and to $4.25 an hour beginning April 1, 1991.
Verified September 26, 2026 | $3.80April 1, 1990 – April 1, 1991 | April 1, 1990 | April 1, 1991 |
BLS · May 2025
How the minimum compares with typical pay in Alabama
33%of the median hourly wage
The median hourly wage across all occupations in Alabama is $21.96 and the mean is $27.65 (BLS Occupational Employment and Wage Statistics, May 2025, state estimates). The minimum wage of $7.25 is 33% of the median; the 10th-percentile wage is $12.54, so roughly the lowest-paid tenth of workers earn within $5.29 of the minimum. BLS
| Applies to | Rate |
|---|---|
| Minimum wage | $7.25 |
| 10th percentile | $12.54 |
| 25th percentile | $15.41 |
| Median | $21.96 |
| Mean | $27.65 |
5 rules · September 26, 2026
Labor law basics in Alabama
What the law adds on top of the hourly rate. Follow the citation for exceptions.
Overtime
Covered non-exempt employees must be paid at least 1.5 times their regular rate for hours worked over 40 in a workweek; federal law sets no daily overtime and no weekend or holiday premium. (non-exempt employees covered by the FLSA)
Source: 29 U.S.C. § 207
Unless specifically exempted, employees covered by the Act must receive overtime pay for hours worked in excess of 40 in a workweek at a rate not less than time and one-half their regular rates of pay. There is no limit in the Act on the number of hours employees aged 16 and older may work in any workweek. The Act does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest, as such.
- Source
- agency page
- snapshot
- September 26, 2026
Verified September 26, 2026
Overtime-exempt salary threshold
Executive, administrative and professional employees are exempt from minimum wage and overtime only if they meet the duties tests and are paid a salary of at least $684 per week ($35,568 a year). (executive, administrative, professional and outside sales employees)
Source: 29 C.F.R. Part 541
To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $684 per week.
- Source
- agency page
- snapshot
- September 26, 2026
- Notes
- The 2024 rule raising the level to $844/$1,128 was vacated in November 2024; DOL enforces the 2019 level of $684.
Verified September 26, 2026
Young workers' hours
14- and 15-year-olds may work at most 3 hours on a school day, 8 hours on a non-school day, 18 hours in a school week and 40 hours in a non-school week, outside school hours. (14- and 15-year-olds in non-agricultural jobs)
Source: 29 C.F.R. Part 570
no more than 3 hours on a school day , including Fridays; no more than 8 hours on a nonschool day; no more than 18 hours during a week when school is in session; no more than 40 hours during a week when school is not in session;
- Source
- agency page
- snapshot
- September 26, 2026
Verified September 26, 2026
Required poster
Employers whose employees are covered by the FLSA minimum wage provisions must post, and keep posted, a notice explaining the Act in a conspicuous place in all of their establishments. (employers covered by the FLSA)
Source: 29 U.S.C. § 207
Every employer of employees subject to the Fair Labor Standards Act's minimum wage provisions must post, and keep posted, a notice explaining the Act in a conspicuous place in all of their establishments.
- Source
- agency page
- snapshot
- September 26, 2026
- Notes
- The notice DOL publishes for this purpose is the FLSA minimum wage poster (WH-1088), free from the WHD posters page.
Verified September 26, 2026
Tips
An employer may count tips toward the minimum wage only after telling the tipped employee the cash wage, the tip credit claimed, that the credit cannot exceed tips received, that tips belong to the employee except in a valid tip pool, and that the credit requires this notice; employers, managers and supervisors may never keep employees' tips. (tipped employees under the FLSA)
Source
Employers must provide the following information to tipped employees before taking a tip credit under the FLSA: the amount of the direct (or cash) wage the employer is paying a tipped employee, which must be at least $2.13 per hour; the additional amount claimed by the employer as a tip credit, which cannot exceed $5.12 (the difference between the minimum required direct (or cash) wage of $2.13 and the current minimum wage of $7.25); that the tip credit claimed by the employer cannot exceed the amount of tips actually received by the tipped employee; that all tips received by the tipped employee are to be retained by the employee except for a valid tip pooling arrangement limited to employees who customarily and regularly receive tips; and that the tip credit will not apply to any tipped employee unless the employee has been informed of these tip credit provisions.
- Source
- agency page
- snapshot
- September 26, 2026
Verified September 26, 2026
$7.25 / hour
Calculators
Estimates before tax at this rate. Nothing you type leaves this page.
What this wage pays
| Weekly | $290.00 |
|---|---|
| Monthly52 weeks ÷ 12 | $1,256.67 |
| Annual52 weeks | $15,080.00 |
| Overtime rate1.5× where overtime applies | $10.88 |
5 questions
Frequently asked questions
What is the minimum wage in Alabama in 2027?
$7.25 per hour since July 24, 2009, set by United States. For a 40-hour week that is about $290.00 a week or $15,080.00 a year before tax.
Is the minimum wage in Alabama increasing?
No increase is scheduled on record as of October 1, 2026. Inflation-indexed jurisdictions announce the next figure a few months before it takes effect.
What is the tipped minimum wage in Alabama?
Employers may pay tipped employees a cash wage of $2.13 per hour as long as tips bring them to $7.25 (a maximum tip credit of $5.12).
What is the minimum wage for young or new workers in Alabama?
Youth (under 20 years old, first 90 consecutive calendar days of employment): $4.25 per hour.
How does Alabama compare with other states?
Alabama's $7.25 ranks 32 of 51 state general rates, against a federal floor of $7.25.
2 levels of law
How this rate is resolved
The highest minimum that covers the work location applies.
Employers must pay the highest minimum that covers the work location. WageTable checks each level in turn:
- United States
- Alabama
Alabama sets no rule of its own on record.
Notes on this jurisdiction's rules and sources
No state minimum wage law; the federal FLSA minimum wage ($7.25, tipped cash wage $2.13) applies to covered employers. Ala. Code § 25-7-41 (Act 2016-18) bars counties and municipalities from requiring wages not required by state or federal law. Evidence: US DOL state table ('No state minimum wage law.'). No rows published; federal applies.
United States
Enforcement
Enforced by U.S. Department of Labor, Wage and Hour Division. Employers must display the official minimum wage poster.
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