Whether you are just entering the workforce or are seeking out an entry-level position, it’s common to have questions about the minimum wage in your state. It helps you understand your earning potential, as well as any laws that require companies to pay a specific amount. If you want to know more about the Alabama minimum wage, here’s what you need to know.
What Is a Minimum Wage?
The minimum wage is a particular dollar amount that employers are required to pay all covered nonexempt employees per hour. The majority of the workforce falls in the covered category. However, there are exceptions, including for young workers, full-time students, and some disabled individuals or student learners. Additionally, the rules are a bit different for tipped employees, as well.
The federal minimum wage is $7.25 per hour. If an employee is a tipped worker, that minimum is different, coming in at $2.13 an hour. As long as the tipped worker’s tips bring them up to the equivalent of $7.25 per hour, the employer doesn’t have to pay more than $2.13 per hour. However, if their tips fall short, the employer is legally required to make up the difference.
It is important to note that states and cities can pass their own minimum wage laws, but they can only make it higher than the federal minimum. Additionally, states can pass legislation to require employers to pay tipped workers a full minimum wage if they so choose.
However, states and cities can also default to the federal minimum wage. This can be done through formal legislation or by simply not passing separate legislation addressing the minimum wage in their state.
What Is the Minimum Wage in Alabama?
Alabama does not have any additional minimum wage laws. As a result, the federal minimum wage – as outlined in the Fair Labor Standards Act – applies across the board, including the exemptions listed above.
For most non-tipped employees, that means the minimum wage in Alabama for them is $7.25 per hour. For tipped workers, the base hourly wage is $2.13. However, if your tips don’t bring you up to the equivalent of $7.25 per hour, your employer is legally required to make up the difference.
As mentioned above, different rules apply to workers under the age of 20, full-time students, and certain disabled employees.
Do you think the Alabama minimum wage is high enough? Why or why not? Share your thoughts in the comments below.
Read More:
- 5 Proven Ways to Increase Your Income Over the Next 3 Years
- Minimum Wage Worker Needs 2.5 Full-Time Jobs to Afford 1-Bedroom Apartment
- 5 Things You Can Do to Earn More Tips
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Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.
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