Your Guide to the Alabama Minimum Wage

Your Guide to the Alabama Minimum Wage
Here's a guide to keep business owners in Alabama up to date on state minimum wage requirements.
by Mary Hohn Sep 01, 2023 — 3 min read
Your Guide to the Alabama Minimum Wage

As a small business owner, it’s critical to be aware of minimum wage laws in your state. And although there is no set Alabama state minimum wage, it’s important to make sure you’re current on regulations and prepared for upcoming changes so you can plan accordingly.

To help you, we’ve prepared a quick guide with details on the Alabama minimum wage in 2024 and beyond.

What is the minimum wage in Alabama in 2024?

Alabama is one of five states that hasn’t adopted a state minimum wage law, so it adheres to the federal minimum wage of $7.25, which hasn’t changed since 2009.

While the minimum wage applies to most occupations and employees, there are a few exceptions, including:


Because there are no Alabama state minimum wage laws, all employers and employees are subject to federal exemption standards set forth by the FLSA.

Will the minimum wage change?

As of now, there are no plans to raise the Alabama minimum wage.

However, there’s been an ongoing battle by workers in Birmingham to raise the city’s minimum wage. In February 2016, the city of Birmingham passed legislation to raise the city’s minimum wage from $7.25 per hour to $10.10 per hour. Immediately following that, the state legislature passed a law barring municipalities from setting their own minimum wage, effectively reversing the Alabama minimum wage increase.

Since then, the NAACP, a group of fast-food workers, and other labor groups have filed a lawsuit in federal district court, challenging the state law. Initially, it was dismissed, but in July 2018, the 11th U.S. Circuit Court of Appeals ruled that Alabama’s “preemption law” (i.e., using state law to override a local ordinance) violated the 14th Amendment’s equal protection rights. However, the full appellate court upheld the district court’s dismissal of the case, and the Alabama minimum wage is still $7.25.

While this ruling doesn’t change anything, the case could set a precedent for other cities battling states for minimum wage increases.

How should small business owners prepare for changes to the minimum wage?

While there’s currently no plan to raise Alabama’s minimum wage, it’s smart to plan ahead for potential changes. Here are key steps you should take to ensure your business is ready:


As always, to make sure your business is prepared for anything and stays in compliance, stay up to date with our COVID-19 small business resources and discuss Alabama minimum wage laws with your accountant and lawyer.

Mary Hohn
Mary Hohn writes for Square, where she covers topics that affect business owners — from starting a business to growing a business — and the tools and technology that help them succeed.


Keep Reading

Tell us a little more about yourself to gain access to the resource.

i Enter your first name.
i Enter your last name.
i Enter a valid email.
i Enter a valid phone number.
i Enter your company name.
i Select estimated annual revenue.
i This field is required.

Thank you!
Check your email for your resource.

Results for

Based on your region, we recommend viewing our website in:

Continue to ->