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Employment Preemption

Birmingham's Employment Preemption: The Rules That Matter

By CityRuleLookup Editorial Team

If you live in Birmingham or are thinking about moving there, employment preemption are one of those things you probably won't think about until they affect you directly. Birmingham has 2 specific rules on the books covering different aspects of employment preemption, and some of them might surprise you.

Birmingham cannot require paid sick leave, paid family leave, or any private-employer leave benefit. Ala. Code § 25-7-41 preempts local employment-benefit mandates. Alabama has no state paid sick or paid family leave program. Only federal FMLA (unpaid, 12 weeks at 50+ employers) and voluntary employer benefits apply.

Key details: Local Paid Leave: Preempted. Preempting Statute: Ala. Code § 25-7-41. State Paid Sick Leave: None. State Paid Family Leave: None. Federal Floor: FMLA — 12 weeks unpaid.

No local penalties because no local mandate exists. FMLA violations are pursued by U.S. DOL Wage & Hour under 29 U.S.C. § 2617 with remedies of back wages, restoration, and liquidated damages. Employer-provided PTO policies are enforceable as wage contracts under Ala. Code § 25-3-3 (Alabama Wage Act).

This is one of the stricter rules in Birmingham's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.

Minimum Wage Preemption

Birmingham cannot set its own minimum wage. Ala. Code § 25-7-41 (the 2016 Alabama Uniform Minimum Wage and Right-to-Work Act) preempted local wage ordinances and explicitly nullified Birmingham's 2015 ordinance raising the wage to $10.10/hour. Alabama has no state minimum wage of its own, so the federal FLSA $7.25/hour controls. Tipped wage: $2.13/hour cash + tips.

Key details: State Minimum Wage: None (FLSA $7.25 applies). Tipped Wage: $2.13/hr cash + tips = $7.25. Preemption Statute: Ala. Code § 25-7-41 (Act 2016-18). Struck-Down Ordinance: Birmingham Ord. 15-110 ($10.10/hr). Key Case: Lewis v. Governor of Alabama (11th Cir. 2019).

Because Alabama lacks its own minimum wage, all minimum wage enforcement is federal under FLSA. U.S. DOL Wage & Hour Division remedies (29 U.S.C. § 216(b)) include back wages plus equal liquidated damages for willful violations, civil money penalties up to $2,374 per repeat violation, and a 2-year statute of limitations (3 years for willful violations).

This is one of the stricter rules in Birmingham's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.

The Bottom Line

Birmingham is tougher than many cities when it comes to employment preemption. Out of the 2 rules covered here, 2 are rated strict. If you are a homeowner, renter, or business owner in Birmingham, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

Keep in mind that Birmingham can amend these rules at any council meeting. For the most current version of any rule mentioned here, check the specific ordinance page, where we track updates as they happen.