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Alabama Employment and Labor Laws
Keeping up with state employment and labor laws can substantially complicate compliance efforts. Here’s what employers in Alabama need to know.
Alabama employment laws mostly defer to federal standards with minimal state-level mandates. While employers must still meet federal requirements on wages and protected leave, Alabama's approach favors employer discretion, balanced by specific rules on equal pay and non-compete agreements.
When it comes to talent and workforce management, Alabama-based employers need to comply with the following state employment laws:
- Pay equity
- Anti-discrimination
The below information was last updated July 21, 2025. It is not intended as legal advice. Also, unless otherwise noted below, the following laws predominantly apply to the private sector.
Alabama Labor Laws
A subset of employment law, labor law focuses on the relationships between employers, employees, and labor unions, particularly in the context of collective bargaining and workplace rights.
Central to US labor law is the National Labor Relations Act (NLRA), which protects employees’ rights to organize, join unions, and negotiate working conditions while restricting unfair labor practices. Still, states can enact additional laws, such as Right-to-Work statutes, that influence union membership and dues requirements.
Is Alabama a Right-to-Work State?
Right-to-work states prohibit employers from requiring union membership or dues as a condition of employment (a.k.a. union security agreements).
Alabama is one of 26 states that currently have right-to-work laws (Ala. Const. Art. I §36.05).
Alabama Employment Laws
Employment law governs the individual rights of employees and their professional relationship with their employers, such as working hours, fair wages, anti-discrimination protections, and workplace safety.
Alabama Wage Laws
| Alabama Minimum Wage | The state of Alabama doesn’t have a minimum wage law, so it uses the federal rates ($7.25 overall; $2.13 for employees who earn tips with their base pay) under the Fair Labor Standards Act (FLSA), when applicable. |
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Alabama Overtime Pay Laws |
Alabama doesn't currently have any overtime pay laws or regulations. Although, Alabama-based employers must still comply with FLSA requirements that nonexempt employees receive 1.5 times their normal pay rate when working over 40 hours a week. |
| Alabama Pay Equity Law |
Under Alabama's Clarke-Figures Equal Pay Act, all employers in Alabama (including the state or any of its political subdivisions) may not pay any employees at wage rates less than the rates paid to employees of another sex or race for equal work within the same establishment on jobs, the performance of which requires equal skill, effort, education, experience, and responsibility, and performance under similar working conditions, except where the payment is made pursuant to any of the following:
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Alabama Pay Transparency Law |
Alabama currently has no pay transparency laws or regulations. |
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Alabama currently has no final paycheck laws or regulations. |
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Alabama PTO Payout Laws |
Alabama doesn’t have specific PTO payout requirements, as it bases such decisions on an employer's policy. It also has no regulations regarding the use of "use-it-or-lose-it" policies. |
Alabama Leave Laws
| Alabama Paid Sick Leave (PSL) | Alabama currently has no paid sick leave laws or regulations. |
| Alabama currently has no PFML laws or regulations. Although, employers with 50 or more employees must still comply with the federal Family and Medical Leave Act (FMLA), which provides eligible employees up to 12 weeks of unpaid leave every 12 months for various reasons. | |
| Alabama Maternity Leave | Alabama doesn't have a maternity leave law, as this type of leave is an employer-provided benefit. Since the state also doesn’t have a mandated PFML program, employees must instead use FMLA leave or another type of employer-provided leave. |
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Alabama Voting Leave Law |
Alabama currently has no voting leave laws or regulations. |
Alabama Workplace Health and Safety Management
All states must comply with federal health and safety standards overseen by the Occupational Safety and Health Administration (OSHA).
While some states adopt additional health and safety regulations, Alabama is an "OSHA plan" state, meaning it defers to OSHA's requirements when addressing health and safety matters, such as having an emergency action plan or providing medical and first aid supplies.
Alabama Work Break Laws
Alabama currently has no work break laws or regulations.
Alabama Harassment and Workplace Discrimination Laws
Alabama doesn’t have a state anti-discrimination law covering various protected classes. However, as described by the Ala. Code § 25-1-21 and Ala. Code § 45-8-120.19, employers in Alabama are prohibited from discriminating against employees based on age or religion.
Alabama also doesn’t have state-specific anti-harassment laws, nor does it require employees to complete any harassment or discrimination training courses.
| Alabama Non-Compete Agreement Laws | Alabama is one of several states that limit the use of non-compete agreements. Alabama Code §8-1-1(b) (precursor to current Alabama Code §8-1-190) specifically authorized restrictions in conjunction with the sale of a business and certain restrictions in the employment context. Alabama courts have traditionally held that covenants not to compete in the employment context are only enforceable if the employer has a protectible interest, the restriction is reasonably related to that interest, the restriction is reasonable in time and place, and the restriction imposes no undue hardship on the employee. |
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Alabama Retirement Plan Laws |
Alabama currently has no mandatory retirement plan laws or regulations. |
This information is provided as a courtesy and may be updated at any time. It is not intended as legal guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified employment or labor attorney or advisor.
Keep Up With Compliance
Between constantly changing employment laws and updates to the Affordable Care Act (ACA), keeping your workplace compliant can be a time-consuming and costly challenge. Eliminate the stress and stay up to date with our Compliance Dashboard. View compliance alerts and get a bird’s eye view of what you need to do to avoid fines and penalties.
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