Alabama Minimum Wage Calculator
Alabama has no state minimum-wage law. For employment covered by the federal Fair Labor Standards Act (FLSA), the ordinary federal floor is $7.25 an hour. At 40 hours a week, that is $290 gross weekly or $15,080 over 52 weeks.
Time card Calculate pay for a covered hourly job
Weekly gross including tips—
Confirm coverage to calculate.
- Hourly floor—
- Per workday—
- Weekly gross—
- Monthly average—
- Yearly gross—
- Employer cash before shortfall
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- Weekly tips retained
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- Employer shortfall payment
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- Total employer cash
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Overtime uses the full regular rate before subtracting a permitted tip credit. The employer must cover a weekly tip shortfall within the selected scope. This floor scenario does not calculate pay at a higher agreed rate. Per-workday pay divides the week by the days with hours. Annual figures repeat the rounded weekly result.
Reviewed rate period: 2026-01-01 through 2027-12-31. Gross earnings before taxes or deductions. Annual figures repeat this weekly scenario; they do not combine different rate periods.
Reviewed October 2, 2026. The federal figure is not an Alabama state rate. Alabama’s labor department directs wage-and-hour questions to the U.S. Department of Labor. Alabama agency guidance; DOL state-law table.
Does the federal floor cover an Alabama job?
An employer’s location alone does not decide coverage. Enterprise coverage commonly includes businesses with at least $500,000 in annual business, as well as specified institutions. A worker may have individual coverage through interstate-commerce duties even when the employer falls below that threshold. Being paid hourly is also different from being nonexempt from overtime. DOL coverage guidance.
The calculator models an ordinary covered adult hourly job at the federal floor. Youth rates, certified subminimum wages, government-contract rates, exempt occupations, and a higher agreed wage need a separate determination. If coverage is uncertain, leave the confirmation unchecked rather than treating $7.25 as a ruling for the job.
Alabama pay examples: wages, tips, and employer shortfall
These are hypothetical covered-work scenarios. All tips shown are retained after any lawful pool. Overtime is included after 40 hours in the same workweek; amounts are rounded at the weekly total.
| Scenario | Cash before shortfall | Tips | Employer shortfall | Total gross |
|---|---|---|---|---|
| Part time, full cash wage | $145.00 | $0.00 | $0.00 | $145.00 |
| Full time, full cash wage | $290.00 | $0.00 | $0.00 | $290.00 |
| 45 hours, full cash wage | $344.38 | $0.00 | $0.00 | $344.38 |
| 40 tipped hours, $100 tips | $85.20 | $100.00 | $104.80 | $290.00 |
| 45 tipped hours, $300 tips | $113.98 | $300.00 | $0.00 | $413.98 |
When can an Alabama employer pay $2.13 in cash?
For eligible federally covered tipped work, the federal minimum cash payment is $2.13, with a maximum $5.12 tip credit. The worker must customarily and regularly receive more than $30 a month in tips, and the employer must satisfy the notice and tip-retention rules. Tips that do not cover the credit create an employer-paid shortfall. A compulsory service charge is not a tip. DOL tipped-worker rules.
For the 40-hour example with $100 in tips, $85.20 in cash plus those tips is only $185.20. The employer must add $104.80 to reach $290. This payment is shown separately so the calculator does not silently treat missing wages as tips.
Overtime uses the full regular rate
The ordinary FLSA rule pays 1.5 times the regular rate for hours above 40 in a workweek. Bonuses, service charges, and other included compensation can raise that regular rate; the floor-only model here excludes them. DOL regular-rate guidance.
For eligible tipped work at this floor, an overtime hour has a $10.875 gross wage requirement before the $5.12 credit: $5.755 in employer cash before any shortfall. Multiplying $2.13 by 1.5 would understate it. The 45-hour example with $300 tips therefore produces $113.98 employer cash and $413.98 total gross. DOL overtime and tip-credit explanation.
Gross pay is different from spendable income
The monthly figure divides the annual scenario by 12; it is not a four-week paycheck or an after-tax amount. Taxes, insurance, other payroll deductions, and unpaid weeks change spendable income. No statewide rent estimate is used here: compare your own rent with your actual take-home pay.
Working across an Alabama state line
When shifts move across the state line, check the workplace’s rule: Florida minimum wage, Georgia minimum wage, Mississippi minimum wage or Tennessee minimum wage. Do not carry Alabama’s federal-only starting point into another state without checking that state’s coverage and rate.
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