The state-wide minimum wage for Alabama is $7.25 per hour as of January 01, 2024.
In Alabama, the conversation around minimum wage is particularly pertinent. The state adheres to the federal minimum wage guideline, meaning employees are guaranteed at least $7.25 per hour. However, there’s more to the story when considering overtime pay and the exceptions that apply to different types of workers. We’re here to break down the essentials, offering clarity and insights into how the minimum wage in Alabama impacts its workforce.
Here’s a breakdown to help you navigate through these nuances:
- Tipped Employees: For those earning at least $30 per month in tips, the hourly base rate is $2.13. However, it’s essential that their earnings, including tips, at least meet the $7.25 hourly minimum wage. This adjustment ensures fairness for tipped employees, aligning their income with non-tipped workers.
- Young Workers Under 20: The Fair Labor Standards Act (FLSA) provides a provision for employees under the age of 20. They can be paid a youth minimum wage of $4.25 per hour during their first 90 days of employment. After this probationary period, their wage must be adjusted to the standard minimum wage.
- Full-time Students: Students working full-time in certain sectors may be eligible for a reduced wage, which is 75% to 85% of the standard minimum wage. This applies to those employed in retail, services, agriculture, or by colleges and universities. Such measures are designed to facilitate employment while not deterring educational pursuits.
- Certain Disabled Workers: Another exception includes workers with disabilities who, upon receiving a certificate from the Alabama Department of Labor, can be paid at a rate different from the minimum wage. This provision aims to encourage the employment of disabled individuals under conditions that accommodate their capabilities.
Here is a summary:
| Employee Category | Wage Provision |
|---|---|
| Tipped Employees | $2.13/hour + tips to meet $7.25/hour |
| Young Workers Under 20 | $4.25/hour for first 90 days |
| Full-time Students | 75%-85% of minimum wage |
| Certain Disabled Workers | Special rate as certified by Alabama Department of Labor |
On a federal level, the minimum wage has remained at $7.25 per hour since July 2009. Despite various states, cities, and municipalities opting to increase their minimum wages well above the federal rate to adjust for the cost of living, Alabama has maintained the federal minimum wage standard. This adherence signals to businesses and workers within the state a uniformity in wage expectations across many industries.