Alabama Minimum Wage 2026: $7.25, With No State Minimum Wage Law
Alabama’s minimum wage is the federal $7.25 an hour, because Alabama has no state minimum wage law. Employers covered by the Fair Labor Standards Act pay $7.25, or a $2.13 cash wage to tipped employees whose tips make up the rest. State law bars cities and counties from setting a higher local rate, so $7.25 applies statewide. No increase is scheduled.
Alabama at a glance
| Current rate | $7.25 / hour (federal; Alabama has no state minimum wage law) |
|---|---|
| Effective | July 24, 2009 (federal rate) |
| Tipped cash wage | $2.13 / hour ($5.12 tip credit), federal rules |
| Next scheduled change | None. Alabama would change only if Congress raised the federal rate or the Legislature enacted a state minimum wage |
| Local rates | None. Counties and cities are barred from setting wage requirements (Ala. Code § 25-7-41) |
| Youth rate | Federal $4.25 youth opportunity wage for workers under 20, first 90 consecutive days |
Why Alabama uses the federal rate
Alabama is one of a handful of states with no minimum wage law at all. The U.S. Department of Labor's state minimum wage table, last updated July 1, 2026, lists Alabama as having "no state minimum wage law" and says employers covered by the Fair Labor Standards Act must pay the federal $7.25. The FLSA covers most employers. The federal rate has been $7.25 since July 24, 2009.
What Alabama does have is a law stopping local governments from setting their own. The Alabama Uniform Minimum Wage and Right-to-Work Act, passed in 2016 as Act 2016-18, says in Ala. Code § 25-7-41(b) that a county, municipality or other political subdivision "shall not enact or administer any ordinance" requiring an employer to provide any employment benefit, including wages, leave or work schedules, "that is not required by state or federal law." Any inconsistent local ordinance is void.
Alabama tipped minimum wage
Because Alabama has no state law, the federal tip credit rules apply (U.S. DOL tipped wage table). An employer can pay a tipped employee a cash wage of $2.13 an hour and count up to $5.12 an hour in tips toward the $7.25 minimum. A tipped employee is one who customarily and regularly receives more than $30 a month in tips. If tips plus the cash wage fall short of $7.25 in a workweek, the employer makes up the difference, and employers may not keep any part of employees' tips.
Exceptions
- Federal youth opportunity wage: $4.25 an hour for workers under 20 during their first 90 consecutive calendar days of employment.
- Employers and employees outside FLSA coverage have no minimum wage requirement in Alabama, because there is no state law to fill the gap. That group is small; check the federal coverage tests before relying on it.
- Full-time students, learners and workers with disabilities can be paid less only under certificates issued by the U.S. Department of Labor.
What this means for hiring
$7.25 is a legal floor, not a hiring rate, and many Alabama employers hiring for manufacturing, healthcare, logistics and hospitality roles pay above it. Applicants compare your ad against other employers' rates, so put the real starting rate in the first line. To see what a hire costs at that rate once taxes and benefits are added, use the employee cost calculator. For E-Verify, child labor certificates, breaks and final pay, see Alabama labor laws, and compare other states on our minimum wage by state hub.
Frequently asked questions
What is the minimum wage in Alabama in 2026?
$7.25 an hour, the federal minimum wage. Alabama has no state minimum wage law, so the Fair Labor Standards Act sets the rate for covered employers, as it has since July 24, 2009. Tipped employees can be paid $2.13 an hour in cash if tips bring them to at least $7.25.
Is Alabama raising its minimum wage?
No. Alabama has no state minimum wage to raise, and no increase is scheduled. The rate would change only if Congress raised the federal minimum wage or the Alabama Legislature passed a state minimum wage law. Cities and counties cannot set their own under Ala. Code § 25-7-41.
What is the tipped minimum wage in Alabama?
$2.13 an hour in cash wages under federal law, with a maximum tip credit of $5.12, so tips and cash wage together must reach $7.25 an hour. If they do not in a given workweek, the employer pays the difference. Employers may not keep any portion of employees' tips.
Can Birmingham set a higher minimum wage?
No. The Alabama Uniform Minimum Wage and Right-to-Work Act, passed in 2016, says in Ala. Code § 25-7-41(b) that no county, city or other political subdivision may require an employer to pay wages or provide benefits beyond what state or federal law requires, and it declares inconsistent local ordinances void. Birmingham employers pay the federal $7.25 minimum like everyone else in the state.
Hiring hourly workers in Alabama?
We can tell you honestly whether your job ads are priced to win applicants at the rate you pay, before you spend anything.
Book a DemoPart of Boostpoint’s minimum wage by state series.