Payment of Wages: Alabama
Federal law and guidance on this subject should be reviewed together with this section.
Author: Toby Dykes, Constangy, Brooks, Smith & Prophete, LLP
- Alabama follows federal law regarding wage payment methods and pay frequency. However, special pay frequency rules apply to public service corporations that are engaged in transportation and that employ 50 or more workers. Penalties are imposed for noncompliance. See Wage Payment Methods; Pay Frequency.
- Alabama has no law regarding pay statement requirements or the types of deductions that are permitted. The only deductions that are expressly prohibited are mandatory deductions for union dues, fees or other charges to a labor organization that are a condition of employment. See Permitted and Prohibited Wage Deductions; Pay Statement Requirements.
- Alabama has no laws governing termination pay, but employees who believe that they were unjustifiably terminated have the right to file a claim with the state Department of Labor. See Termination Pay.
- If an employee dies without a will and has unpaid wages, the employer must pay all wages due to the deceased employee's surviving spouse or custodian of any minor children. See Deceased Employee Wages.
- Wages that are unclaimed by an employee are considered abandoned after one year. Employers must notify the affected employee, file a report and remit the unclaimed wages according to a specific procedure. Serious penalties are imposed for noncompliance. See Unclaimed Wages.