Laws by state · data
Alabama wage and hour laws, 2026
The minimum wage in Alabama is $7.25 an hour in 2026; overtime is owed after 40 hours a week, under federal law. The $7.25 is the federal rate: Alabama has no minimum wage law. Tipped workers can be paid $2.13 an hour in cash, with up to $5.12 of their tips counted toward the $7.25 minimum.
Minimum wage
| Minimum wage, per hour | $7.25 |
|---|---|
| Set by | Federal: no state law |
No state minimum wage law: employers covered by the FLSA pay the federal $7.25.
Sources: U.S. Department of Labor, State Minimum Wage Laws (updated July 1, 2026; Michigan: $15.00 scheduled for January 1, 2027). Checked November 5, 2026. The full table: Minimum wage by state, 2026
Tipped minimum wage
| Minimum cash wage | $2.13 |
|---|---|
| Max tip credit | $5.12 |
| Full minimum wage | $7.25 |
No state minimum wage law; the federal rates apply.
Sources: U.S. Department of Labor, Minimum Wages for Tipped Employees (last revised July 1, 2026). Checked November 5, 2026. The full table: Tipped minimum wage by state, 2026
Overtime
| Time and a half after, per day | No |
|---|---|
| Time and a half after, per week | 40 h |
The DOL lists no state overtime rule; the federal FLSA applies.
Sources: U.S. Department of Labor, State Minimum Wage Laws: premium pay after designated hours (updated July 1, 2026). Checked November 5, 2026. The full table: Overtime laws by state, 2026
Worked examples at the minimum wage
A 40-hour week: $290.00
Five 8-hour days at the $7.25 minimum, before taxes: 40 regular hours, no overtime.
A 45-hour week: $344.38
Five 9-hour days at the $7.25 minimum, before taxes: 40 regular hours and 5 overtime hours at $10.88 (1.5 times $7.25), $54.38 of overtime pay.
A year of full time: $15,080.00
40 hours a week for 52 weeks at the $7.25 minimum, before taxes: $1,256.67 a month.
A tipped worker’s 30 hours: $217.50
The employer pays $63.90 in cash wages ($2.13 an hour) and may count up to $153.60 of tips toward the rest; if tips fall short, the employer makes up the difference.
A summary of what these agencies and statutes say, not legal advice. Cities and counties may set higher minimum wages, and exemptions or industry rules can change what you are owed: check your state’s labor department.
Wage and hour laws in every state