Alabama is one of the few states that does not have a state minimum wage. So Alabama’s minimum wage now follows the federal minimum wage which was effective from July 24, 2009.
- 2015 Minimum Wage: $7.25/hour
- 2015 Tipped Wage: $2.13/hour
Cost of Living
According to recent studies, conducted by the Bureau of Economic Analysis, the cost of living in Alabama is lower than most other states. There are only three states which cost less for residents to live. These calculations take into account things like goods and services and rent. Based on this methodology, a dollar in Alabama will get you farther than a dollar in a state such as California where the state minimum wage is currently $9.00 an hour. After adjusting for inflation, if you earn $7.25 in Alabama it is considered equivalent to $8.23, while California’s higher rate of $9.00 an hour is worth only $7.97.
Get More Information
For more information from the U.S. Department of Labor, check out the following link: Federal Minimum Wage
Source: Bureau of Economic Analysis, Regional Price Parities
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