Alabama Overtime Calculator — FLSA rules

Frequently Asked Questions

• Does Alabama have a state overtime law?

  No. Alabama has no separate state overtime statute. Overtime for Alabama workers is governed entirely by the federal Fair Labor Standards Act (FLSA), which requires nonexempt employees to be paid at 1.5× their regular rate for all hours worked over 40 in a single workweek (29 U.S.C. § 207).

• At what point does overtime start in Alabama?

  Under the FLSA as applied in Alabama, overtime begins after 40 hours in a single workweek. There is no daily overtime threshold — Alabama employers are not required to pay overtime for working more than 8 hours in a single day, unlike California or Alaska. Each workweek (any consecutive 7-day period) is calculated independently.

• What is the overtime rate in Alabama?

  The overtime rate in Alabama is 1.5× (time-and-a-half) the employee's regular rate of pay for all hours worked over 40 in a workweek. If an employee earns $15.00/hr, the overtime rate is $22.50/hr. There is no double-time requirement in Alabama (double-time applies in California for shifts exceeding 12 hours).

• Who is exempt from overtime pay in Alabama?

  Under the FLSA, employees are exempt from overtime if they meet both a salary basis test and a duties test. As of 2026, the federal salary threshold is $684 per week ($35,568 annually). Exempt categories include bona fide executive, administrative, professional, computer, and outside sales employees. Certain industries (agriculture, seasonal amusement) have additional exemptions. Alabama does not add further exemptions beyond the federal standard.

• Can Alabama employers average hours across workweeks to avoid overtime?

  No. The FLSA prohibits averaging hours across workweeks. If an employee works 50 hours in week one and 30 hours in week two, they are owed overtime for 10 hours in week one — the 10 extra hours cannot be offset by the 10 hours of undertime in week two.

• Is there a special overtime rule for salaried employees in Alabama?

  Salaried employees are not automatically exempt from overtime. To qualify as exempt, a salaried employee must earn at least $684/week (as of 2026) AND perform duties that meet one of the FLSA's exemption categories (executive, administrative, professional, etc.). Salaried non-exempt employees are still entitled to overtime at 1.5× their regular rate for hours over 40.

• How is overtime calculated if an employee has multiple pay rates in a workweek?

  When an employee works at two or more different rates in a workweek, the regular rate for overtime purposes is the weighted average of all rates — total straight-time earnings divided by total hours worked. The overtime premium (0.5×) is then applied to that blended rate for each hour over 40.

• What are the penalties for an Alabama employer who fails to pay overtime?

  Under the FLSA, an employer who fails to pay required overtime may be liable for: (1) back wages for unpaid overtime; (2) an equal amount in liquidated (double) damages; and (3) attorney's fees and court costs. The statute of limitations is 2 years for non-willful violations and 3 years for willful violations. The U.S. Department of Labor's Wage and Hour Division enforces FLSA violations in Alabama.

• Does the Alabama income tax exemption for overtime wages still apply in 2026?

  No. Alabama's state income tax exemption for overtime wages — which took effect in 2023 — expired on June 30, 2025 and was not renewed. However, beginning in 2025, the federal One Big Beautiful Bill Act provides a federal income tax deduction of up to $12,500 per year (or $25,000 for married filing jointly) for the overtime premium portion of pay for FLSA-covered nonexempt employees, through 2028.