Table of Contents
I remember the day vividly.
I was a few years into running my small business here in Alabama, and I wanted to hire a high school student for the summer.
To make sure I did everything by the book, I started looking for the official rules.
My first search was for the “Alabama Wage and Labor Board.” It seemed logical.
Every state has one, right? An agency that handles all things labor-related: pay rates, work hours, rules for young workers, the whole nine yards.
That search sent me down a rabbit hole that wasted the better part of a week.
I’d land on the Alabama Department of Labor (ADOL) website, find a promising link, and click, only to be told that for questions about wages or hours, I needed to contact the federal U.S. Department of Labor.1
I’d call a state number and get referred to a federal one.
It felt like a bureaucratic shell game.
I was frustrated, confused, and no closer to getting a simple answer.
I kept thinking, “There has to be one place, one authority that governs this.”
The truth, I eventually discovered, is that there isn’t.
The “Alabama Wage and Labor Board,” as a single, all-powerful entity, is a myth.
The system that governs work in our state isn’t one simple thing; it’s a complex partnership.
My breakthrough came when I stopped looking for a single agency and started seeing the system for what it truly is: a Two-Headed Dragon.
One head is the Federal Government, a massive and powerful force that dictates the vast majority of our rules on wages and overtime through the Fair Labor Standards Act (FLSA).
The other head is the State of Alabama.
This head is quieter and more focused, but it holds absolute dominion over a few critical areas—most importantly, child labor—with rules so specific and strict that ignoring them can lead to disaster.
Understanding this dual system, this Two-Headed Dragon, didn’t just give me an answer; it gave me a framework.
It’s the map I wish I’d had from the beginning.
My goal here is to share that map with you—whether you’re an employee trying to understand your rights, a parent of a working teen, or a fellow business owner trying to stay compliant.
By understanding which head of the dragon you’re dealing with, you can finally get the right answers, find the right resources, and navigate Alabama’s unique labor landscape with confidence.
Part I: The Federal Head – The U.S. Department of Labor’s Dominion in Alabama
The first and most powerful head of our dragon is the federal government.
For most of the day-to-day questions about pay that arise in an Alabama workplace, the answer lies not in Montgomery, but in Washington, d+.C.
This is because Alabama is one of a handful of states that has not passed its own comprehensive wage and hour laws.3
As a result, the federal
Fair Labor Standards Act (FLSA) becomes the law of the land by default.5
This principle of federal supremacy is the single most important concept to grasp.
When the state is silent, the federal government speaks, and its voice is legally binding.
To make this clear from the start, let’s break down which agency handles the most common labor issues in Alabama.
Table 1: Jurisdictional Snapshot: Who Handles What in Alabama?
| Issue | Governing Body | Key Regulation / Law |
| Minimum Wage | U.S. Dept. of Labor (Wage and Hour Division) | Fair Labor Standards Act (FLSA) |
| Overtime Pay | U.S. Dept. of Labor (Wage and Hour Division) | Fair Labor Standards Act (FLSA) |
| Tipped Employees | U.S. Dept. of Labor (Wage and Hour Division) | Fair Labor Standards Act (FLSA) |
| Final Paycheck Timing | No specific law; federal best practices apply | N/A (Alabama defers to federal guidance) |
| Meal & Rest Breaks | No specific law; federal rules for paid breaks apply | Fair Labor Standards Act (FLSA) |
| Child Labor | Alabama Dept. of Labor (Child Labor Division) | Alabama Child Labor Law (Title 25, Ch. 8) |
| Unemployment Insurance | Alabama Dept. of Labor | Alabama State Law |
| Workers’ Compensation | Alabama Dept. of Labor | Alabama State Law |
| Workplace Safety | U.S. Dept. of Labor (OSHA) | Occupational Safety and Health Act (OSHA) |
As the table shows, the federal head of the dragon—enforced by the U.S. Department of Labor’s Wage and Hour Division (WHD)—controls the core pocketbook issues.
Minimum Wage and Tipped Employees
Because Alabama has no state minimum wage, employers must adhere to the federal rate, which is currently $7.25 per hour.7
In 2016, a state law was passed that explicitly prevents cities or counties from setting their own, higher minimum wages, ensuring this federal standard applies uniformly across Alabama.9
The rules become more complex for tipped employees, like restaurant servers or bartenders.
Under the FLSA, employers can pay a direct cash wage of as little as $2.13 per hour.10
However, this is not a flat rate.
It’s part of a system called a “tip credit.” The employer is taking a credit against the minimum wage obligation based on the tips the employee is expected to earn.
The crucial rule is this: the employee’s direct wage ($2.13/hour) plus their tips must equal at least the full federal minimum wage ($7.25/hour).
If an employee’s tips in a given workweek don’t make up that difference, the employer is legally required to pay the shortfall.6
This is a frequent source of wage disputes, often arising from an employer’s failure to properly track tips or make up the difference during slow periods.
The FLSA also includes a “youth minimum wage,” allowing employers to pay workers under the age of 20 a rate of $4.25 per hour for their first 90 consecutive calendar days of employment.10
After 90 days, or once the employee turns 20, they must be paid the full minimum wage.
Overtime Pay and the High-Stakes Game of Employee Classification
The FLSA is unequivocal about overtime: non-exempt employees must be paid at a rate of 1.5 times their regular rate of pay for all hours worked over 40 in a single workweek.6
Alabama has no separate overtime law, so this federal standard is absolute.7
While the math is simple, this is one of the most contentious areas of labor law due to the concept of employee classification.
Many of the most common and costly wage disputes in Alabama stem not from an employer refusing to pay overtime, but from an employer illegally classifying a worker to avoid the obligation in the first place.13
This isn’t just a clerical error; it’s a strategic decision that can amount to wage theft.12
There are two primary ways this happens:
- Exempt vs. Non-Exempt Misclassification: An employer might pay an employee a flat salary and call them “exempt” from overtime. However, a salary alone does not make an employee exempt. The employee’s actual job duties must meet specific criteria under the FLSA’s “duties tests” for executive, administrative, or professional roles. If an employee is salaried but their job doesn’t meet these tests, they are non-exempt and owed overtime.
- Independent Contractor Misclassification: This is an increasingly common issue, particularly in the “gig economy.” By classifying a worker as an “independent contractor” instead of an “employee,” a business attempts to sidestep its obligations to pay overtime, contribute to payroll taxes, and provide benefits.12 The IRS and the U.S. Department of Labor have multi-factor tests to determine a worker’s true status, focusing on the degree of control the business has over the worker. Simply giving someone a 1099 form doesn’t make them a contractor if the reality of the work relationship looks like employment.15
These classification games are a significant financial risk for employers and a major cause of lost wages for workers.
An investigation that uncovers misclassification can lead to years of back pay, damages, and penalties.
Record-Keeping, Breaks, and Final Pay
The federal head of the dragon also dictates several other common workplace practices.
- Record-Keeping: The FLSA requires employers to keep accurate records of all hours worked and wages paid to employees. These records must be maintained for at least three years and be available for inspection by the WHD.3
- Breaks: Alabama law does not require employers to provide meal or rest breaks.7 However, federal law steps in: if an employer
chooses to offer short breaks (typically 5 to 20 minutes), that time is considered part of the workday and must be paid.7 Longer meal breaks (usually 30 minutes or more) do not have to be paid, as long as the employee is fully relieved of all duties during that time. - Final Paycheck: When an employee leaves a job, there is no Alabama law that specifies a deadline for issuing the final paycheck.4 The common practice, guided by federal recommendations, is to provide the final payment no later than the next regular payday.3
The Enforcer: The U.S. DOL’s Wage and Hour Division (WHD)
The agency responsible for enforcing all these federal rules in Alabama is the U.S. Department of Labor’s Wage and Hour Division (WHD).
This is the entity that investigates complaints of unpaid wages, overtime violations, and misclassification.
The WHD has physical offices in Alabama to serve the state, including a district office in Birmingham and an area office in Montgomery.16
When an Alabama worker has a problem with their pay, this is the agency with the authority to act.
Part II: The State Head – The Alabama Department of Labor’s Unique and Critical Realm
Just when I thought I had the system figured out—just follow federal law for everything—I nearly walked straight into a compliance nightmare.
That summer I wanted to hire a local high school student, I assumed the federal rules for teen workers would apply.
It was a logical assumption, but it was dangerously wrong.
This is where the second head of the dragon, the State of Alabama, breathes its fire.
While Alabama defers to federal law on most wage issues, it has created its own comprehensive, strict, and highly specific body of law for one critical area: child labor.
The consistent pattern of “just follow the FLSA” creates a false sense of security for many business owners.
When they encounter child labor, they are often unprepared for the sudden and dramatic shift to a domain where detailed state law is not just present, but supreme.
This cognitive jolt, this “compliance whiplash,” is a major trap.
The Alabama Child Labor Law, found in Title 25, Chapter 8 of the Code of Alabama, is far more detailed and, in many cases, more restrictive than its federal counterpart.17
A key principle of labor law is that when state and federal rules both exist, the one that provides the most protection to the worker—in this case, the minor—is the one that must be followed.19
In Alabama, this almost always means the state law wins.
A Deep Dive into Alabama’s Child Labor Laws
Navigating the rules for employing minors in Alabama requires careful attention to detail.
The regulations are managed and enforced by the Alabama Department of Labor’s (ADOL) Child Labor Division.5
Here are the essential components every employer must know.
Mandatory Child Labor Certificates
This is non-negotiable.
Before hiring anyone under the age of 18, an employer must obtain a Child Labor Certificate from the ADOL for each physical location where minors will work.
These certificates must be renewed annually and displayed in a public area of the workplace.19
There are two types:
- Class I Certificate: Required to employ minors aged 14 and 15.
- Class II Certificate: Required to employ minors aged 16 and 17.
Applications can be completed online through the ADOL website, and each certificate costs $15 per location.20
Strict Hour and Time Restrictions
Alabama law imposes very specific limits on when and how long minors can work.
These rules are more restrictive than federal law and vary significantly by age and whether school is in session.
Table 2: Alabama Child Labor Restrictions at a Glance
| 14-15 Year Olds | 16-17 Year Olds (Enrolled in School) | |
| During School Session | ||
| Max Daily Hours | 3 hours on a school day; 8 hours on a non-school day 17 | No specific daily hour limit |
| Max Weekly Hours | 18 hours per week 17 | No specific weekly hour limit |
| Time Restrictions | Not before 7 a.m. or after 7 p.m. 19 | Not before 5 a.m. or after 10 p.m. on a night before a school day 17 |
| Work During School Hours | Prohibited (between 8 a.m. and 3 p.m.) 17 | Permitted |
| During School Vacation | ||
| Max Daily Hours | 8 hours per day 17 | No specific hour limit |
| Max Weekly Hours | 40 hours per week 17 | No specific hour limit |
| Time Restrictions | Not before 7 a.m. or after 9 p.m. 17 | No time restrictions 17 |
| Required Breaks | Documented 30-minute break for any shift over 5 continuous hours 17 | No break requirement 19 |
| Certificate Required | Class I Certificate 17 | Class II Certificate 17 |
Prohibited Occupations
To protect the health and safety of young workers, Alabama law explicitly prohibits minors from working in a long list of hazardous occupations.
- Minors Under 16 are barred from working in or around manufacturing plants, mills, workshops, warehouses, canneries, or in construction.17 They are also forbidden from operating most power-driven machinery.21
- Minors Under 18 are prohibited from a wider range of dangerous jobs, including mining, demolition, roofing, logging or sawmill operations, operating heavy equipment, and working with hazardous chemicals or radioactive substances.23
- Establishments Serving Alcohol: The rules are particularly strict here. Generally, one must be 21 to serve alcohol. Minors 16 and older can work in non-serving roles (e.g., busser, cook, host), but minors aged 14 and 15 are completely prohibited from working in any establishment that serves alcohol for on-site consumption.19
Record-Keeping for Minors
In addition to the federal FLSA requirements, Alabama employers must keep specific records on-site for every employee who is 18 years old or younger.
This includes proof of age (like a birth certificate or driver’s license), time records showing exact start and end times, and break times.20
Other Alabama Department of Labor (ADOL) Functions
Beyond its critical role in child labor, the state head of the dragon, the ADOL, manages several other distinct and vital programs for Alabama’s workforce.
It’s important to know these functions are separate from the wage and hour issues handled by the federal WHD.
- Unemployment Compensation (UC): The ADOL administers the state’s unemployment insurance program, handling claims from workers who have lost their jobs through no fault of their own, processing employer tax contributions, and managing appeals.1 Alabama’s maximum weekly unemployment benefit is $275.25
- Workers’ Compensation: This ADOL division oversees the mandatory insurance program that provides medical and wage benefits to employees who are injured on the job. This program protects both employees and employers by providing a no-fault system for handling workplace injuries.1
- Workforce Development: Through programs like AlabamaWorks!, the ADOL connects job seekers with employers, provides training and education resources, and helps build the state’s labor pool.15
Part III: Taming the Dragon – A Practical Playbook for Employees and Employers
Knowing the two heads of the dragon is one thing; dealing with them is another.
This knowledge is only useful if it translates into action.
Here is a practical playbook for both employees seeking fair pay and employers striving for bulletproof compliance.
For Employees: Identifying Wage Theft and Filing a Complaint
Wage theft is a pervasive problem, and it often happens in ways that are not immediately obvious.
In Alabama, common wage theft scenarios include 10:
- Unpaid Overtime: Being paid your regular rate for hours worked over 40.
- Working “Off-the-Clock”: Being asked to work before clocking in or after clocking out.
- Misclassification: Being improperly labeled an “independent contractor” or an “exempt” salaried employee to deny you overtime.
- Illegal Deductions: Having money taken from your paycheck for uniforms, cash register shortages, or broken equipment.
- Tip Credit Violations: Your employer paying you the tipped minimum wage ($2.13/hour) but failing to ensure your total earnings with tips reach the full minimum wage ($7.25/hour).
If you believe you are a victim of wage theft, you have the right to file a complaint.
Here is the correct, step-by-step process:
- Gather Your Information: Before you file, collect as much documentation as possible. This includes pay stubs, personal records of your work hours (a simple notebook or spreadsheet can be powerful evidence), your employer’s full name and address, and any emails or texts related to your pay.28
- Contact the Correct Agency: This is the most critical step. For any issue related to minimum wage, overtime pay, or unpaid wages, you must file your complaint with the U.S. Department of Labor’s Wage and Hour Division (WHD). The Alabama Department of Labor does not have jurisdiction over these issues and will only refer you to the WHD.2
- How to File: You can contact the WHD and begin the complaint process by calling their national toll-free number: 1-866-487-9243.30 WHD staff can assist you in any language, and the process is confidential.
- The Investigation Process: If the WHD determines an investigation is warranted, a field investigator will be assigned to your case. The process typically involves an initial conference with the employer, confidential interviews with employees (your identity as the complainant is protected), a review of the employer’s payroll records, and a final conference where the investigator presents any findings and requests payment of any back wages owed.30
It is illegal for your employer to fire, demote, or retaliate against you in any way for filing a complaint or cooperating with a WHD investigation.
The law protects your right to seek the wages you have rightfully earned.30
For Employers: A Framework for Bulletproof Compliance
After my initial frustrating experience, I developed a simple checklist to ensure my business was always compliant.
It’s structured around the Two-Headed Dragon model and has saved me countless hours and headaches.
The Two-Headed Dragon Compliance Checklist
Federal Head (FLSA) Checklist:
- Wages: Am I paying every non-tipped employee at least the federal minimum wage of $7.25 per hour? For tipped employees, am I tracking their tips to ensure their total earnings meet or exceed $7.25 per hour each workweek?
- Overtime: Is every hour worked over 40 in a workweek paid at 1.5 times the employee’s regular rate?
- Classification: Are my salaried employees truly exempt based on the FLSA duties tests, or are they owed overtime? Are my independent contractors truly independent, or do they function as employees under the law?
- Record-Keeping: Are my time and payroll records accurate, complete, and maintained for at least three years?
State Head (Alabama Law) Checklist:
- Child Labor: Do I employ anyone under the age of 18?
- Certificates: If yes, do I have the correct, current Class I or Class II Child Labor Certificate from the ADOL posted for this location?
- Hours: Am I strictly following the state’s age-specific rules for work hours, time of day, and days per week, especially during the school year?
- Occupations: Is the minor performing a job that is legally permitted for their age?
- Records: Do I have a file for each minor with acceptable proof of age and detailed time records?
This isn’t an abstract exercise.
Federal enforcement is real, targeted, and active in our region.
The WHD has been intensifying its investigations in the Southeast, including Alabama, with a particular focus on industries like healthcare and food service.31
Between 2020 and 2022, WHD investigators found violations in nearly 89% of their home and nursing care investigations in the Southeast, recovering over $16.2 million in back wages and damages for workers.31
The consequences of non-compliance can be severe.
In July 2025, a poultry processor right here in Jasper, Alabama, was ordered to pay $385,000 in civil money penalties after a federal investigation found them in violation of child labor laws.32
This case perfectly illustrates the danger of ignoring the dragon.
A WHD investigation, even if it starts with a simple overtime complaint (a federal issue), can easily uncover other violations, like improper child labor practices (a state-specific issue enforced federally).
A problem with one head of the dragon draws the attention of an enforcer with authority over both.
A single loose thread in your compliance can cause the entire structure to unravel, compounding penalties and legal exposure.
To help you get to the right place the first time, here is a final, simple directory.
Table 3: Agency Directory: Who to Call for What
| If your problem or question is about… | You should contact… | Contact Information |
| Unpaid Overtime / Minimum Wage Violation | U.S. Dept. of Labor, Wage & Hour Division | 1-866-487-9243 / www.dol.gov/agencies/whd |
| Needing a Child Labor Certificate / Teen Work Hours | Alabama Dept. of Labor, Child Labor Division | (334) 956-7390 / labor.alabama.gov |
| Filing for Unemployment Benefits | Alabama Dept. of Labor, Unemployment Division | 1-866-234-5382 / adol.alabama.gov |
| A Workplace Injury or Illness | Alabama Dept. of Labor, Workers’ Comp Division | (334) 956-4044 / labor.alabama.gov |
| Suspected Workplace Discrimination | U.S. Equal Employment Opportunity Commission (EEOC) | 1-800-669-4000 / www.eeoc.gov |
Conclusion: Taming the Dragon and Moving Forward with Confidence
My journey to understand Alabama’s labor laws began in a state of total confusion, chasing the myth of a single “Wage and Labor Board.” It ended with clarity, found not in a single agency, but in a simple, powerful framework: the Two-Headed Dragon.
One head, the Federal Government, roars the loudest, setting the baseline for wages and overtime that applies to nearly every workplace in the state.
The other head, the State of Alabama, speaks less often but with absolute authority on critical issues like child labor, unemployment, and workers’ compensation.
Ignoring either one is a risk no business can afford, and a vulnerability no employee should have to endure.
The system is unique, and at first glance, it can feel like a maze designed to frustrate.
But it is not indecipherable.
By understanding this dual nature, by knowing which head to address for which problem, you can tame the dragon.
For employers, this means building a compliance strategy that respects both federal and state authority.
For employees, it means knowing exactly who to call when your rights have been violated.
With this map in hand, we can all move forward with confidence, ensuring a fair, safe, and productive workplace for everyone in Alabama.
Works cited
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