Wage-and-hour ground rules for hotel and hospitality employers in Alabama — minimum wage, tipped-employee rules, overtime, breaks, premium pay, and the hotel-specific obligations that apply on top. Figures below were last reviewed on June 12, 2026; most rates adjust annually.
Verified as of June 12, 2026 — every figure on this page was checked against the official sources listed at the bottom on that date. How we verify →
Minimum wage#
The Alabama minimum wage is $7.25 per hour, effective July 24, 2009. Alabama has no state minimum wage law; the federal FLSA rate of $7.25 (unchanged since July 24, 2009) applies to covered employers. Employees outside FLSA coverage have no wage floor.
Preemption Alabama preempts local minimum wage ordinances — cities and counties cannot set their own general wage floors.
Tipped employees & tip pooling#
Alabama allows a tip credit: employers may pay tipped employees a cash wage of $2.13 and claim up to $5.12 per hour in tips toward the minimum wage. Federal FLSA rules apply: employee must customarily and regularly receive more than $30/month in tips, employer must give §3(m)(2)(A) tip-credit notice, and cash wage plus tips must reach $7.25/hour. No state tipped-wage statute; the federal $2.13 cash minimum governs.
Tip pooling#
Federal rules only: employers, managers, and supervisors may never keep tips; where a tip credit is taken, mandatory pools are limited to customarily tipped employees; if full minimum wage is paid in cash, pools may include non-tipped back-of-house staff. (29 U.S.C. §203(m)(2)(B); 29 C.F.R. §531.54)
See the federal baseline rules in our tip credit and tip pooling briefs — the stricter of federal or Alabama law controls.
Overtime#
Overtime is due after 40 hours in a workweek. No state overtime statute; FLSA time-and-a-half after 40 hours governs.
Run the math — including the tipped-overtime trap — with the tipped overtime calculator.
Meal & rest breaks#
Meal breaks: Not required by Alabama law for adult employees — No meal break requirement for adult employees; minors aged 14-15 must receive a 30-minute break after 5 continuous hours under the child labor law.. Federal law requires only that breaks under 20 minutes, if offered, be paid.
Rest breaks: Not required by Alabama law.
Scheduling & premium pay#
- Reporting-time pay: None required by state law.
- Split-shift premium: None.
- Spread of hours: None.
Service charges & gratuities#
Alabama has no service-charge-specific statute — the federal tip/service-charge line (and IRS treatment) controls. Background: service charges, auto-gratuities & resort fees.
Pay administration#
- Pay frequency: No state pay-frequency statute for private-sector employers; pay schedules are a matter of employer policy or contract.
- Wage statements: No state wage statement requirement; FLSA recordkeeping standards (29 C.F.R. part 516) are the only applicable rules.
- Exempt salary floor: $684.00/week (federal) — Federal EAP salary floor applies; DOL's 2024 rule raising it was vacated (Texas v. DOL, E.D. Tex. 2024) and DOL has reverted to the 2019 $684/week level.
- Lodging credit: Federal FLSA §3(m) reasonable-cost board/lodging credit applies; no separate state rule.
The Alabama Uniform Minimum Wage and Right-to-Work Act (Act 2016-18) nullified Birmingham's $10.10 ordinance and bars all local wage mandates; the challenge in Lewis v. Governor of Alabama was ultimately dismissed. Alabama has no state wage-and-hour enforcement agency — hotel wage claims proceed under the FLSA through US DOL or private suit.
Official sources#
- Alabama Department of Labor
- US DOL Wage and Hour Division (enforces FLSA in AL)
- US DOL consolidated state minimum wage table (accessed 2026-06-12)
- US DOL minimum wages for tipped employees table (accessed 2026-06-12)
- Paycom minimum wage rate by state (2026) cross-check (accessed 2026-06-12)