Alabama Overtime & Paycheck Calculator
Advanced Tax & Paycheck Deductions (Optional) ▼
Visual Pay Composition Breakdown
Managing payroll or shift workers in CALIFORNIA?
Avoid Department of Labor non-compliance fines. Automate state-specific overtime, double-time rules, tip credits, and statutory tax withholdings with Gusto Payroll Automation.
Alabama Statutory Wage & Overtime Authority
Statutory Legal Citation: Ala. Code § 25-1-1
Alabama adopts the federal FLSA minimum wage of $7.25/hr. Overtime is paid at 1.5x regular pay for hours over 40 per workweek.
Employee Statutory Rights (AL)
- ✓ Federal $7.25/hr minimum wage protection under FLSA.
- ✓ 1.5x regular rate for hours worked over 40 per workweek.
- ✓ Protection from illegal payroll deductions.
Employer Mandatory Obligations (AL)
- § Pay non-exempt employees on regular scheduled paydays.
- § Maintain accurate FLSA time logs for 3 years.
- § Make up tip credit shortfalls below $7.25/hr.
Alabama Statutory Wage & Overtime FAQs
What is the minimum wage in Alabama for 2026? ↓
Under statutory citation Ala. Code § 25-1-1, the 2026 minimum wage in Alabama is $7.25 per hour. Employers paying below this baseline face Department of Labor back-pay audits and statutory interest penalties.
Does Alabama mandate daily overtime pay? ↓
Alabama follows the standard federal FLSA rule (Title 29 U.S.C. § 207). Overtime is calculated weekly for hours exceeding 40 hours in a 7-day workweek with no daily cap.
Can employers in Alabama take a tip credit against wage rates? ↓
Alabama permits employers to claim a maximum tip credit of $5.12/hr against tipped staff, requiring a minimum direct cash wage of $2.13/hr.
Common Alabama Payroll Compliance Traps & Audit Penalties
Failing to make up tip credit shortfalls.
Requiring off-the-clock shift preparation work.
Misclassifying hourly workers as 1099 independent contractors.
Did Your Employer Violate Alabama Labor Law?
30-Second Diagnostic • Sourced from Ala. Code § 25-1-1
Based on Alabama labor code standards (Ala. Code § 25-1-1), your responses indicate potential statutory wage violations.
Never Miss an Overtime Dollar or Statutory Rate Update
Set weekly payday audit reminders & Alabama labor code alert updates
Add a recurring Friday payday paystub audit reminder directly to your phone calendar.
Employer Statutory Violation & Penalty Risk Audit
Department of Labor & State Compliance Fine Exposure in Alabama
Under FLSA § 216(b), mandatory double back pay is assessed for unpaid overtime.
1 hour regular rate premium pay per workday missed under state law.
Waiting time statutory penalties for delayed final paycheck settlement.
Automate state-specific overtime thresholds, tip credits, and meal breaks with Gusto Payroll & multi-state compliance partners.
FLSA & AL Overtime Exemption Checklist
Determine if an employee is legally exempt from overtime under state and federal law
Earns at least $844/week ($43,888/yr federal minimum) or state higher threshold (e.g. CA $66,560/yr).
Primary duty involves managing business operations, directing 2+ staff, or exercising independent judgment.
Receives a predetermined, non-deductible salary regardless of quality or quantity of weekly work.
Managing payroll or shift workers in Alabama?
Avoid Department of Labor non-compliance fines. Automate state-specific overtime, double-time rules, tip credits, and statutory tax withholdings with Gusto Payroll Automation.
Embed This Alabama Calculator on Your Website
HR blogs, news portals, and labor websites can embed this interactive 2026 Alabama wage tool for free using the code snippet below: