Alabama Minimum Wage 2026
Last updated: · Source: Alabama Department of Labor
Alabama · Minimum Wage 2026
Effective 2009-07-24
Data last verified: 2026-07-09
Tipped Rate
$2.13/hr
Tip Credit
$5.12/hr
Exempt Salary
$684/wk
Effective Date
2009-07-24
Alabama Wage Calculator
Current Alabama Minimum Wage
The minimum wage in Alabama is $7.25 per hour in 2026, effective 2009-07-24. Alabama follows the federal minimum wage set by the Fair Labor Standards Act (FLSA), which has remained at $7.25/hr since 2009. See the federal minimum wage page for how the FLSA floor applies nationwide.
Under the Fair Labor Standards Act, employers must pay the highest minimum wage that legally applies to a work location, whether set federally, by the state, or by a city or county ordinance.
Alabama Tipped Minimum Wage
In Alabama, tipped employees may be paid a direct cash wage of $2.13/hr. Employers may claim a tip credit of up to $5.12/hr, but the employee's total hourly earnings (direct wages + tips) must equal at least the full minimum wage of $7.25/hr. If tips fall short, the employer must make up the difference.
| Component | Rate | Notes |
|---|---|---|
| Direct cash wage | $2.13/hr | Minimum employer must pay directly |
| Tip credit | $5.12/hr | Maximum credit employer may claim |
| Total required | $7.25/hr | Wages + tips must reach this floor |
Alabama Exempt Employee Salary Threshold (2026)
An "exempt" employee is a salaried worker who, by law, isn't entitled to overtime pay (time-and-a-half) for hours worked beyond 40 in a week. Whether a salaried employee actually qualifies as exempt depends on both their pay and their job duties. Alabama follows the federal FLSA salary threshold. To qualify for the white-collar (executive, administrative, or professional) overtime exemption, salaried employees must earn at least $684/week ($35,568/year) in 2026.
City & County Minimum Wages in Alabama
Alabama's Uniform Minimum Wage and Right-to-Work Act (2016) prohibits cities and counties from setting minimum wage or other wage/benefit mandates that differ from state/federal law, which blocked Birmingham's local minimum wage ordinance.
| City / County | 2026 Rate | Notes |
|---|---|---|
| Birmingham | $7.25/hr (state rate) | Follows the federal/state rate; state law preempts local minimum wage ordinances. |
| Montgomery | $7.25/hr (state rate) | Follows the federal/state rate; state law preempts local minimum wage ordinances. |
| Huntsville | $7.25/hr (state rate) | Follows the federal/state rate; state law preempts local minimum wage ordinances. |
| Mobile | $7.25/hr (state rate) | Follows the federal/state rate; state law preempts local minimum wage ordinances. |
Alabama Minimum Wage History
The following table shows minimum wage rates in Alabama over the past several years.
| Year | Minimum Wage | Effective Date | Notes |
|---|---|---|---|
| 2009 | $7.25/hr | 2009-07-24 |
Frequently Asked Questions
The minimum wage in Alabama is $7.25 per hour in 2026, effective 2009-07-24. Tipped employees may be paid $2.13 per hour provided tips bring total earnings to at least $7.25/hr.
Alabama has no state minimum wage law and defaults to the federal rate of $7.25/hr, which remains unchanged in 2026; a bill to create a $10.00/hr state minimum wage (SB 171) has not passed.
In Alabama, tipped employees must be paid at least $2.13 per hour directly. Employers may claim a tip credit of up to $5.12/hr, but total compensation including tips must reach $7.25/hr.
Alabama follows the federal FLSA salary threshold. Salaried exempt employees must earn at least $684/week ($35,568/year) to qualify for the white-collar overtime exemption in 2026.
Alabama's Uniform Minimum Wage and Right-to-Work Act (2016) prohibits cities and counties from setting minimum wage or other wage/benefit mandates that differ from state/federal law, which blocked Birmingham's local minimum wage ordinance.