Alabama overtime.
Alabama follows federal FLSA overtime: 1.5× after 40 hours per workweek.
AL
40
hrs
—
—
$7.25
/hr
federal rate
How Alabama calculates overtime.
Weekly overtime
Hours over 40 per workweek paid at 1.5×
Daily overtime
Not required by state law
Double time
Not required by state law
7th consecutive day
No special rule
Calculate your Alabama overtime
The weekly timesheet automatically applies AL rules.
Who's outside the rules
These categories of employees may be exempt from the overtime requirements above:
01
Standard FLSA exemptions apply
Alabama does not have a state minimum wage or overtime law, so federal FLSA rules apply.
Alabama at a glance
Alabama's economy generated $321.2 billion in GDP in 2024, driven by strong manufacturing, automotive, and aerospace sectors. The state secured $7 billion in new capital investments across 224 projects in 2024, creating over 8,500 career opportunities. Alabama ranks seventh nationally for manufacturing employment concentration and is the top auto-exporting state in the U.S.
Industries with frequent overtime
Automotive Manufacturing
With vehicle exports exceeding $10 billion annually, automotive plants including Mercedes-Benz, Honda, Hyundai, and Toyota operate multiple shifts requiring regular overtime during production surges.
Aerospace and Defense
Over 400 aerospace companies employ 50,000+ workers in Alabama, including Airbus, Boeing, and Lockheed Martin. Production deadlines and government contracts often necessitate extended hours.
Healthcare
Hospitals and healthcare facilities across Alabama regularly require overtime from nurses, technicians, and support staff to maintain 24/7 patient care coverage.
Logistics and Warehousing
Transportation and warehousing added 2,754 jobs in Q4 2024, with distribution centers and shipping operations often requiring overtime during peak seasons.
Alabama overtime FAQ
No, Alabama does not have a separate state overtime law. The state follows the federal Fair Labor Standards Act (FLSA), which requires employers to pay non-exempt employees 1.5 times their regular rate for hours worked over 40 in a workweek.
No. Under Alabama's Overtime Exemption Act (as amended by Act 2024-437), overtime wages are exempt from Alabama state income tax through June 30, 2025. This applies to all non-exempt employees who work over 40 hours in a workweek.
You have 2 years from the date the wages were earned to file a claim for unpaid overtime. If your employer willfully violated overtime laws, the statute of limitations extends to 3 years.
Filing a wage claim in Alabama
If you believe you're owed unpaid overtime, here's what to do — in order.
Document all hours worked and gather pay stubs, timesheets, and any relevant employment records.
Contact your employer directly to attempt resolution of the unpaid overtime issue.
Since Alabama has no state labor department for wage claims, file a complaint with the U.S. Department of Labor Wage and Hour Division.
You may also consult with an employment attorney to file a private lawsuit for unpaid wages, back pay, and potential liquidated damages.
Alabama offers a unique state income tax exemption on overtime pay through June 30, 2025. Employers must report overtime wages separately on Form W-2 (Box 14) using 'EX OT WAGES' as the indicator, making it easier for workers to verify their tax-exempt overtime earnings.
For general education only. Overtime law changes and has exceptions not listed here. For a specific situation, talk to your employer's HR department, the Alabama Department of Labor, or an employment attorney.