Alabama Minimum Wage
Alabama has no state minimum wage law, so the federal rate of $7.25 an hour applies to employers covered by the Fair Labor Standards Act, according to the U.S. Department of Labor's State Minimum Wage Laws table, updated November 5, 2026.
- Rate in effect
- $7.25
- Federal minimum
- $7.25
- Full-time year
- $15,080
- State rank
- Tied 32nd of 51
Local ordinances and sector rates can be higher where state law allows them, and are not shown here. To confirm a local or sector rate, use the state agency listed on the Department of Labor's State Labor Offices page.
Source: U.S. Department of Labor, State Minimum Wage Laws, updated 2026-11-05. Checked against NCSL state minimum wage table (as of 2026-07-01); EPI 2026 table where listed. A full-time year is 2,080 hours, the convention BLS uses. Confirm the rate in the Department of Labor table. Table read November 10, 2026; rechecked on the January 1 and July 1 statutory change dates, next on January 1, 2027. Scheduled rates are shown where the Department of Labor or the state's own agency publishes one we could read; a state showing none may still have one, so check its labor office.
How does Alabama's minimum wage compare with the federal rate?
The rate in effect in Alabama is the federal minimum of $7.25. 19 other states are at the same rate.
What is the tipped minimum wage in Alabama?
Employers in Alabama can pay tipped workers a cash wage of $2.13 an hour and count a tip credit of up to $5.12 toward the $7.25 combined rate. The table counts as tipped an employee who receives more than $30 a month in tips.
The Department of Labor adds: Alabama does not have a state minimum wage law. Employers must pay employees covered by the federal Fair Labor Standards Act at least the federal minimum wage.
Source: U.S. Department of Labor, Minimum Wages for Tipped Employees, updated November 5, 2026.
How does the minimum compare with pay in Alabama?
The lowest-paid tenth of jobs in Alabama paid $12.54 an hour or less in May 2025, so the current minimum equals 58% of that line and 33% of the state's median hourly pay of $21.96.
Source: BLS OEWS state file, May 2025, all occupations, hourly; minimum wage as listed on November 5, 2026. The wage figures are from May 2025, so a rate raised since then can sit above them. Confirm the wage figures in the OEWS tables at bls.gov.
Which occupations in Alabama pay closest to the minimum?
Waiters and waitresses have the 10th-percentile wage closest to $7.25, at $7.96 an hour, among occupations with at least 100 jobs.
| Occupation | 10th percentile | Median | Jobs |
|---|---|---|---|
| Waiters and Waitresses | $7.96 | $12.91 | 28,760 |
| Bus Drivers, School | $7.96 | $8.48 | 10,410 |
| Dining Room and Cafeteria Attendants and Bartender Helpers | $8.01 | $10.80 | 3,420 |
| Amusement and Recreation Attendants | $8.30 | $11.16 | 6,740 |
| Bartenders | $8.30 | $13.45 | 6,560 |
| Labor Relations Specialists | $8.60 | $23.13 | 590 |
| Substitute Teachers, Short-Term | $8.74 | $12.18 | 9,290 |
| Parking Attendants | $8.88 | $14.59 | 1,110 |
| Film and Video Editors | $8.95 | $35.78 | 120 |
| Childcare Workers | $8.98 | $10.92 | 4,580 |
Source: BLS OEWS state file, May 2025, hourly wages. Confirm in the OEWS tables at bls.gov.