Alabama FLSA Laws: Your Guide to Compliance
Ensure Compliance with Alabama-Specific FLSA Auditing
Minimum Wage in Alabama
- Federal FLSA: $7.25/hour.
- Alabama Law: No state minimum wage—federal rate of $7.25/hour applies (Alabama does not establish a separate minimum wage law). Tipped employees must receive at least $2.13/hour in direct wages, with employers ensuring total earnings meet the federal minimum wage.
- Local Ordinances: Alabama prohibits local governments from establishing their own minimum wage laws (Alabama Act 2016-18).
What You Need to Know: The federal minimum wage prevails in Alabama. Employers failing to meet wage standards face back wages, liquidated damages, and potential fines.
Overtime Pay
- Federal FLSA: 1.5x regular rate for hours over 40/week.
- Alabama Specifics: Alabama does not have separate state overtime laws—federal law applies.
Risk: Misclassification of employees as exempt from overtime can lead to costly audits by the U.S. Department of Labor (DOL), including back pay and penalties.
Child Labor
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Alabama Rules:
- Minors under 14 generally prohibited from employment, except in limited roles (e.g., newspaper delivery, entertainment).
- Ages 14–15: Limited to 3 hours/school day, 8 hours/non-school day, and 18 hours/school week (Alabama Child Labor Law, § 25-8-36).
- Ages 16–17: Prohibited from hazardous occupations, including manufacturing, mining, and operating heavy machinery.
- Work permits required for minors under 18, issued by the Alabama Department of Labor.
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Federal FLSA: Aligns with Alabama law but imposes additional restrictions on hazardous jobs.
Compliance Note: Violations can result in fines of up to $5,000 per offense, with higher penalties if injury or death occurs.
Recordkeeping
- Federal FLSA: Employers must retain payroll, hours, and employment records for three years.
- Alabama Addition: Employers must keep child labor records and work permits for all minors employed.
Key Detail: Failure to maintain accurate records can complicate wage dispute defenses and lead to fines.
Enforcement & Penalties
- Federal: U.S. DOL enforces FLSA compliance with penalties, including back wages, liquidated damages, and fines up to $15,629 per child labor violation, increasing to $71,031 for violations resulting in serious injury or death.
- Alabama: The Alabama Department of Labor enforces child labor laws, with penalties up to $5,000 per violation and potential business license revocation for repeat offenses.
Overlap: Employers must comply with the stricter of federal or state penalties, increasing non-compliance risks.
Why It Matters for Your Business
CFOs and Managers: Alabama’s reliance on federal wage and hour laws simplifies compliance but still requires vigilance. Missteps in overtime classification, child labor, or recordkeeping could lead to costly DOL audits and penalties.
Avoid Costly Mistakes: Ensure your payroll policies align with FLSA standards by conducting a proactive audit.
Schedule Your Alabama FLSA Audit Today
Stay compliant and protect your business from legal risks—consult an expert today for a tailored Alabama FLSA audit.
