📅 2026 Update: Changes in Alabama Overtime Laws

Since the original article was published, there have been important updates related to overtime laws in Alabama. The U.S. Department of Labor (DOL) made changes to salary thresholds, which affect who is eligible for overtime pay.

The prior article continues further down the page.

📊 New Salary Thresholds

As of November 15, 2024, the minimum salary level for exemption under the Fair Labor Standards Act (FLSA) is $684 per week. This change came after the DOL's final rule from April 2024 was vacated.

  • 📈 Highly Compensated Employees: The compensation requirement for highly compensated employees remains at $107,432 annually.

🕒 Future Salary Updates

The DOL plans to update salary thresholds every three years, starting on July 1, 2027. These updates will reflect current earnings data and are expected to increase the minimum salary level to $844 per week.

⚖️ Exemption Criteria

To qualify for exemption under the FLSA, employees must meet specific criteria related to their job duties and compensation. This means employers should thoroughly assess whether employees meet the salary basis test, salary level test, and duties test.

📝 Recordkeeping Requirements

Employers must maintain accurate records of hours worked and wages paid. This is essential for compliance with overtime regulations, as violations can result in penalties.

📌 Key Points

  • Minimum salary level is $684 per week.
  • Highly compensated employees must earn $107,432 annually.
  • Future updates to salary thresholds will occur every three years.
  • Accurate recordkeeping is essential for compliance.
  • Exemption criteria are crucial for determining overtime eligibility.

💡 Tips for Understanding Alabama Overtime Laws

Review the specifics of your situation with your attorney to ensure you understand your rights and obligations.

📋 Know Your Rights

Understand that non-exempt employees are entitled to overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rate of pay.

📅 Workweek Definition

A workweek is a fixed period of 168 hours. This period is typically seven consecutive 24-hour days. Knowing this helps in calculating overtime correctly.

🕵️‍♂️ Assess Your Exemption Status

Employers need to evaluate whether employees meet the criteria for exemption. This assessment includes the salary level and job duties.

🧾 Keep Accurate Records

Employers are required to keep detailed records of hours worked and wages paid. This is important for both compliance and resolving any potential disputes.

🗓️ Understand State Variations

State overtime laws may differ from federal regulations. Always check with state labor departments for any additional protections.

📞 Utilize DOL Resources

The DOL offers guidance materials and resources. These can help both employers and employees understand overtime rules better.

❓ Frequently Asked Questions

❓ What is the current minimum salary for exemption?

The current minimum salary level for exemption under the FLSA is $684 per week, as of November 15, 2024.

🏢 How does Alabama law differ from federal law?

Alabama overtime laws may provide additional protections beyond federal standards. It's important to check with state labor departments for specific regulations.

👥 Who qualifies as a highly compensated employee?

To qualify as a highly compensated employee, an individual must earn at least $107,432 annually according to the FLSA.

📝 What records must employers keep?

Employers must maintain accurate records of hours worked and wages paid to ensure compliance with overtime regulations.

⏰ How is overtime calculated?

Overtime pay is calculated at a rate not less than time and one-half the regular rate of pay for hours worked over 40 in a workweek.

🌐 Where can I find more information on overtime laws?

The DOL provides various guidance materials and resources to help both employers and employees understand their rights regarding overtime laws.

⚖️ Recent Court Cases on Overtime Regulations

Recent court rulings have clarified the application of overtime laws and regulations. These rulings connect directly to the enforcement of the Fair Labor Standards Act (FLSA) and its exemptions.

You can browse more rulings in the news section.

End of October 2026 Update







 



A brief guide to Alabama overtime law



Rather than establishing its own guidelines for employees, the state of Alabama follows the provisions detailed in the federal Fair Labor Standards Act. Thus, Alabama overtime laws require any employee who works in excess of 40 hours a week in return for an hourly salary to be paid time and a half for every such hour's labor. There are no guidelines as to how many hours a day may be worked in overtime. An employer is not in violation of Alabama overtime laws no matter how many hours they ask you to work as long as you are properly compensated.

Alabama Overtime Laws


The Fair Labor Standards Act also provides the minimum wage for Alabama, which is $7.25. This means that employers must pay $10.88 an hour for extra work to be in compliance with Alabama overtime law. Some employers may try to evade this requirement by claiming their relatively unskilled employees are salaried and therefore not liable to extra compensation. While this may be true for more highly compensated workers, this will not be the case for workers who work for low hourly rates.



There are several notable exceptions towards Alabama overtime laws. For example, if you are responsible for managing multiple employees, you are not entitled to extra compensation. Alabama overtime law stipulates that you may not spend more than 20% of your time engaged in other occupations. 



People who work as salespeople are generally not eligible for overtime compensation. Similarly, Alabama overtime laws do not apply to people whose tasks are primarily administrative. Salaried employees whose jobs require a large degree of specialized skills and knowledge are also generally not entitled to overtime compensation. However, Alabama overtime laws do not allow employees to simply pay a minimum-wage worker on a salaried basis to evade paying them for all extra labor performed. 



If you believe that your employer is in violation of Alabama overtime laws, there are several actions that you can take to make sure that your rights are respected. It is recommended that you report any potential violation of your rights to the Wage and Hour division of the United States Department of Labor. You may contact these offices to discuss a violation of Alabama overtime law over the phone or in person at their Birmingham or Mobile offices. 



Sometimes, this federal department may investigate your claims and decide they do not have sufficient merit to justify any action being taken. However, if you believe that an employer has violated your rights under Alabama overtime law, you may decide to take legal action. Civil litigation will have a greater chance of succeeding if you maintain meticulous records of all documentation related to your employment. In order to file a lawsuit related to a violation of Alabama overtime law, you may need to retain the services of a lawyer with specialized knowledge in this field who can help you understand the complexities of the civil court system.