An Alabama employment contract ensures that both the employee and the employer are aware of their rights and responsibilities. The legal document covers the job the employee will perform and the salary they will receive.
In order to be valid in Alabama, an employment contract must be in writing, signed by all parties, and the exchanged consideration must be adequate [1] .
- Laws: Code of Alabama Title 25.
- Definition of Employee: § 25-4-7: “Any individual employed by an employer subject to this chapter, in which employment the relationship of master and servant exists between the employee and the person employing him.”
By Type
Independent Contractor Agreement
Outlines the terms of a contractor's work performing a service in exchange for payment.
Subcontractor Agreement
Establishes the terms of the business relationship between a general contractor and a subcontractor.
Non-Disclosure Agreement
Protects confidential information, restricting its disclosure or use.
Non-Compete Agreement
Prevents a person or entity from competing with your company.
Hiring in Alabama
Before hiring an employee in Alabama, there are some state employment laws and requirements that you should be aware of:
At-Will Employment
Alabama is an at-will employment state. This means employers can terminate employees’ jobs without cause without a written employment contract.
Exceptions
- Public Policy: No
- Implied-Contract: Yes
- Good-Faith Exception: Yes
Minimum Wage ($/hr)
No state minimum wage law – Employers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour [2] .
Child Labor
In Alabama, employment certificates (also known as work permits) are mandatory for minors under 18. You can obtain an employment certificate through the minor’s school, typically by contacting a school administrator or guidance counselor [3] .
According to Alabama Child Labor Laws 2023, “Employers are expected to identify minors they employ and ensure that their employment complies with all Federal and state child labor restrictions”.
Payday
There are no regulations for payday requirements in Alabama.
Meal and Rest Breaks
Alabama does not require paid rest periods, nor does it have meal period requirements. However, there are requirements for minors.
Recordkeeping Requirements
Employers in Alabama are required to keep certain types of employee records [4] for purposes of:
- Unemployment insurance: 5 years.
- Safety and health/workers’ compensation: No less than 12 years – for injuries for which payment is claimed or made, and 3 years – for the generation, treatment, storage, transportation or disposal of waste.
- Child labor: 1 year – for the Employee Information Form; Employers with workers less than 18 years of age are required to get a Child Labor Certificate.
Sample
Below, you can download an Alabama employment contract in PDF or Word format:
