Hiring

Advertising

What are the requirements relating to advertising open positions?

There are no requirements for private employers.

Background checks

(a)Criminal records and arrests

There are no restrictions separate from the federal restrictions (the Fair Credit Reporting Act).

(b)Medical history

There are no restrictions, subject to federal restrictions (the Americans with Disabilities Act).

(c)Drug screening

Drug screening is authorized. There is a drug-free workplace law that is helpful in defending workers' compensation claims, but there is no specific regulation of drug testing in the workplace. 

(d)Credit checks

There are no restrictions on credit checks, subject to federal restrictions (the Fair Credit Reporting Act).

(e)Immigration status

The Beason-Hammon Alabama Taxpayer and Citizen Protection Act requires employers to use E-Verify.

(f)Social media

There are no state restrictions.

(g)Other

The Clarke-Figures Equal Pay Act provides that employers may not refuse to interview, hire, promote, or employ an applicant and may not otherwise retaliate against an applicant for refusing to provide wage history information during the application or interview process. A successful plaintiff can recover an amount equal to the wages that were lost because of the violation—plus interest—and must file a lawsuit within two years of the alleged discrimination.

Wage and hour

Pay

What are the main sources of wage and hour laws in your state?

Alabama does not have a state wage and hour statute that governs private employers generally. Alabama does have statutory requirements for the employment of minors, including hours worked, breaks required, and hazardous duty restrictions. The Alabama Department of Labor has enforcement responsibility for this law (Ala. Code 25-8-32 and following). Employers must post the child labor poster. Covered employers are subject to the Fair Labor Standards Act.

The Clarke-Figures Equal Pay Act (CFEPA) prohibits employers from paying any worker at a wage rate less than that paid to employees of another race or sex for equal work where the jobs require equal skill, effort, education, experience, and responsibility under similar working conditions. There is an exception for payments made pursuant to a seniority system, a merit system, a system measuring earnings by quantity or quality of production, or a differential based on any factor other than race or sex. The CFEPA also provides that employers may not refuse to interview, hire, promote, or employ an applicant and may not otherwise retaliate against an applicant for refusing to provide wage history information during the application or interview process. A successful plaintiff can recover an amount equal to the wages that were lost because of the violation—plus interest—and must file a lawsuit within two years of the alleged discrimination.

What is the minimum hourly wage?

Alabama does not have a statutory minimum wage for private employers. Covered employers are subject to the Fair Labor Standards Act.

What are the rules applicable to final pay and deductions from wages?

Alabama does not have state laws regarding final paychecks or wage deductions. Alabama does have a little-used statutory provision that provides: “All assignments made by any person of salaries or wages, to be earned in the future, shall be absolutely void” (Ala. Code 8-5-21). Covered employers are subject to the Fair Labor Standards Act.

Alabama has a statute which provides that all commissions that are due at the time of termination of a contract between a sales representative and a principal must be paid within 30 days from the termination. Any commissions that become due after the termination date must be paid within 30 from becoming due. Failure to pay as required makes the principal liable for three times the damages, plus reasonable attorney’s fees and court costs. (Ala. Code 8-24-1, 2 and 3).

Hours and overtime

What are the requirements for meal and rest breaks?

Alabama does not have any state laws regarding meals and rest breaks for private employers, except as provided in the child labor law. Covered employers are subject to the Fair Labor Standards Act. 

What are the maximum hour rules?

Alabama does not have a maximum hour rule for private employers, except as provided in the child labor law.  Covered employers are subject to the Fair Labor Standards Act.

How should overtime be calculated?

Alabama law does not dictate how overtime should be calculated. Covered employers are subject to the Fair Labor Standards Act. 

What exemptions are there from overtime?

Alabama law does not provide for overtime or overtime exemptions. Covered employers are subject to the Fair Labor Standards Act. 

Record keeping

What payroll and payment records must be maintained?

As part of the child labor laws, employers must keep a complete employee information form, proof of age, and an electronic or photocopy of time records on the premises where minors are employed going back to 60 days before the last day each minor employee worked showing the hours worked each day, starting and ending times, and break times. Employers are encouraged to develop a document retention policy and must follow applicable federal requirements for recordkeeping.