Alabama Overtime Laws
Alabama follows federal FLSA overtime rules.
Weekly OT Threshold
40 hrs
Daily OT Threshold
None
Double Time
No
Minimum Wage
$7.25
Federal rate
Overtime Rules
| Weekly Overtime | Hours over 40 in a workweek paid at 1.5x |
| Daily Overtime | Not required by state law |
| Double Time | Not required by state law |
| 7th Consecutive Day | No special rule |
Exemptions
The following categories of employees may be exempt from overtime requirements:
Standard FLSA exemptions apply
Important Notes
Alabama does not have a state minimum wage or overtime law, so federal FLSA rules apply.
State Labor Department
Alabama Economy and Workforce
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 Common Overtime
These Alabama industries frequently involve overtime work situations:
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.
Frequently Asked Questions
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.
How to File a Wage Claim in Alabama
If you believe you are owed overtime pay, follow these steps:
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.
Important Alabama Consideration
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.
Disclaimer: This information is provided for general educational purposes only and should not be considered legal advice. Overtime laws can change and may have exceptions not listed here. For specific situations, consult with your employer's HR department, the state labor department, or an employment attorney.