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Minimum Wage in Alabama

Alabama has no state minimum wage law, so employers covered by federal law pay the federal $7.25 per hour, with a $2.13 tipped cash wage.

Last checked . General information, not legal advice.

Alabama at a glance

Minimum wage (per hour)
$7.25 (federal rate, no state law)
No state minimum wage law; the federal FLSA rate applies to covered employers.
Tipped cash wage (per hour)
$2.13 (federal rate)
Federal tip credit rules apply; tips must bring pay up to $7.25.
Next scheduled increase
None scheduled
No state minimum wage law; any change would follow the federal rate.

Sources

Last checked

The rules in Alabama

What is the minimum wage in Alabama in 2026?

Minimum wage (per hour) in Alabama: $7.25 (federal rate, no state law). No state minimum wage law; the federal FLSA rate applies to covered employers.

What is the minimum cash wage for tipped employees in Alabama?

Tipped cash wage (per hour) in Alabama: $2.13 (federal rate). Federal tip credit rules apply; tips must bring pay up to $7.25.

When is the next minimum wage increase in Alabama?

Next scheduled increase in Alabama: None scheduled. No state minimum wage law; any change would follow the federal rate.

Where do the Alabama minimum wage laws come from?

The rules above come from US DOL Wage and Hour Division, State Minimum Wage Laws and US DOL Wage and Hour Division, Minimum Wages for Tipped Employees by State (July 1, 2026). Each source is linked on this page. We last checked them in October 2026.

Good to know

Alabama has not enacted a state minimum wage law.

What this means in practice

Check which rate applies before setting pay. Coverage rules, employer size thresholds, and exemptions for certain jobs or industries differ, and a local ordinance may require more than the state rate. The statute linked on each state page is the starting point.

Where a lower tipped cash wage is allowed, the employer usually must make up the difference whenever tips fall short of the full minimum wage for the pay period. Keeping accurate records of hours worked and tips reported helps show that every pay period met the minimum.

Rates can change on fixed dates, often January 1 or July 1, and some states adjust them each year for inflation. Reviewing pay rates, offer letters, and employment contracts ahead of each scheduled change helps avoid underpayment claims.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.