Overtime for Alabama (2026)
Alabama (AL) Key Facts
Minimum Wage
$7.25
Overtime Rule
Weekly only (40 hrs/week)
Weekly Overtime Threshold
40 hours
Overtime Multiplier
1.5x regular rate
State Income Tax Rate
5%
How This Calculator Works in Alabama
This overtime calculator applies Alabama's specific overtime rules to estimate your total pay including overtime. Enter your hourly rate and total hours worked to see your regular pay, overtime pay, and gross total. It accounts for Alabama's weekly 40-hour rule and the standard 1.5x overtime multiplier.
Alabama Overview
Alabama follows the federal overtime standard, requiring employers to pay 1.5 times the regular rate for hours worked beyond 40 in a workweek. There is no daily overtime requirement. The state minimum wage is $7.25 per hour, setting the base rate for overtime calculations.
How Alabama Compares
Alabama's minimum wage of $7.25 matches the federal minimum of $7.25. Like most states, Alabama relies on the federal 40-hour weekly threshold for overtime. Neighboring Mississippi has a minimum wage of $7.25 and uses only the weekly overtime standard.
| State | Top Rate | Notes |
|---|---|---|
| Mississippi | $7.25/hr min wage | Mississippi follows the standard federal overtime rule of 1.5x after 40 hours per week. |
| Tennessee | $7.25/hr min wage | Tennessee follows the standard federal overtime rule of 1.5x after 40 hours per week. |
| Georgia | $7.25/hr min wage | Georgia follows the standard federal overtime rule of 1.5x after 40 hours per week. |
The federal overtime standard requires 1.5x pay after 40 hours per week. Alabama's minimum wage of $7.25 matches the federal minimum of $7.25. Only a few states, including California and Alaska, mandate daily overtime in addition to the weekly threshold.
Tips for Alabama Residents
- 1Alabama's minimum wage is $7.25 per hour. Verify your base rate meets or exceeds this before calculating overtime — overtime pay is calculated on your regular rate, not the minimum.
- 2Overtime in Alabama is calculated at 1.5 times your regular rate for hours beyond 40 per week.
- 3Overtime pay in Alabama is subject to the state income tax (top rate 5%) plus federal taxes. Your effective overtime rate after taxes will be less than the gross 1.5x figure — budget accordingly.
- 4Track your hours meticulously. Under the FLSA, employers must pay overtime for all qualifying hours regardless of whether the overtime was pre-approved. Keep your own records as a backup.
- 5Salaried employees are not automatically exempt from overtime. To be exempt, you must meet specific duties tests and earn above the salary threshold. If you are classified as exempt but believe you should qualify, consult Alabama's department of labor.
Frequently Asked Questions
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