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Alabama Employment Law Compliance Guide for Small Businesses
Low Complexity
Alabama has no state-specific employment laws beyond federal requirements. No state minimum wage, no paid leave mandate, no pay transparency law. However, federal laws (FLSA, Title VII, ADA, FMLA) still apply based on headcount thresholds.
Key Numbers
MINIMUM WAGE
$7.25 (federal minimum)
Compliance Requirements
✓No Pay Transparency Law
Alabama does not currently require salary ranges in job postings. Federal contractors may still have obligations.
✓No State Paid Leave Mandate
Alabama does not require paid sick leave at the state level. Some local jurisdictions may have their own requirements.
★Tip Credit: $2.13
Employers may pay tipped employees a reduced cash wage if tips bring total compensation to at least the minimum wage.
Federal Thresholds That Apply in Alabama
These federal requirements apply to all Alabama employers based on headcount:
1+ employees: FLSA (wage and hour), IRCA (I-9 verification), EPPA (polygraph), USERRA (military leave)
15+ employees: Title VII (discrimination), ADA (disability), GINA (genetic information), Pregnant Workers Fairness Act
20+ employees: ADEA (age discrimination), COBRA (health continuation)
50+ employees: FMLA (12 weeks unpaid leave), ACA (affordable health coverage or $2,880/employee penalty), EEO-1 reporting
100+ employees: WARN Act (60-day notice for mass layoffs)
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This guide is for informational purposes only and does not constitute legal advice. Employment laws change frequently. Consult a licensed attorney for advice specific to your business. Last updated March 2026.