Alabama Statewide Rule
Alabama Minimum Wage Local Preemption Statute
Key Facts
- Governing act
- Ala. Code § 25-7-40 et seq.
- Preemption section
- § 25-7-41 voids local ordinances
- Local minimum wage
- Not allowed
- Wage floor
- Federal $7.25 per hour
- Enacted
- 2016 (Birmingham ordinance trigger)
Summary
Alabama's Uniform Minimum Wage and Right-to-Work Act (Ala. Code § 25-7-40 et seq.) preempts cities and counties from setting a local minimum wage. Alabama has no state minimum wage, so the federal $7.25 rate is the floor statewide.
(b) A county, municipality, or any other political subdivision of this state shall not enact or administer any ordinance, policy, rule, or other mandate requiring an employer to provide any employee, class of employees, or independent contractor with any employment benefit, including, but not limited to, paid or unpaid leave, vacation, wage, or work schedule, that is not required by state or federal law, and shall not require an employer to compensate an employee, class of employees, or independent contractor for any vacation or other form of leave for which state or federal law does not require the employee, class of employees, or independent contractor to be compensated.
Full Breakdown
The Alabama Uniform Minimum Wage and Right-to-Work Act, Ala. Code § 25-7-40 et seq. (Act 2016-18), bars any county or municipality from requiring employers to pay a wage, or provide leave or other employment benefits, beyond what state or federal law mandates. Section 25-7-41 makes any conflicting local ordinance void. The law was passed in 2016 in response to a Birmingham ordinance that raised the local minimum wage to $10.10; a federal appeals court upheld the preemption. Alabama has no state minimum wage statute, so the federal rate of $7.25 per hour applies statewide.
Violations & Penalties
Local minimum-wage ordinances are void and self-executing under Ala. Code § 25-7-41; a city cannot enforce a wage floor above the federal rate.
Frequently Asked Questions
Can Alabama cities set a higher minimum wage?
Does Alabama have its own state minimum wage?
Sources
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