Alabama

  • Project Labor Agreements

    Adopted ABC model government-neutrality bill.

  • Prevailing Wage

    No.

  • Right to Work

    Yes.

  • Public-Private Partnerships

    No statute authorizing or prohibiting P3s on vertical projects; statute authorizes P3s on horizontal projects (toll roads, bridges, ferries, causeways). Unsolicited bids are not allowed.

  • Workforce Development Incentives

    Current labor supply satisfies 65% of peak labor demand.

    State offered $196,841,886 in grants and incentives for workforce preparation and development in 2023.

  • Career and Technical Education

    65% of CTE high school graduates are placed in colleges or careers.

    Alabama recognizes NCCER as an approved curriculum for CTE programs.

  • Job Growth Rate

    2.7%.

Monthly Unemployment Rate in Alabama

Please see ABC's state-by-state construction unemployment data here.

Industry Overview

Prompt Pay

Private: Payment to contractor must be made in 30 days from pay request unless contract states otherwise. Final payment from owner is due no later than 60 days after completion of contractor’s work or substantial completion. Interest at 1% per month after 30 days.
Public: Payment to contractor must be made in 30 days from completion of work and presentation of proper invoice. Interest at 1% per month after 30 days.
Subs: Payment must be made to subs and from subs to lower tiers within 7 days, unless otherwise agreed.

Immigration/E-Verify Mandate

The Beason-Hammon Alabama Taxpayer & Citizen Protection Act (Act 2011-535), signed by Governor Robert Bentley, requires all employers, public and private, within the State of Alabama verify the legal presence of their employees. E-Verify is also required to receive any government contract, grant, or incentives.
Alabama businesses with 25 or fewer employees may elect to use the Alabama E-Verify Employer Agent Service.

Percentage of State GDP From Nonresidential Construction

3.6%.

Incidence Rate

0.8

Occupational Safety & Health Oversight (State vs. Federal)

Federal oversight.

Percentage of Union Membership in Private Construction

8.1%

Marijuana Legalization Status

Legalized for medicinal purposes only.

Business Facts

Minimum Wage

$7.25

Percentage of Pensions Funded

69.4%

Effective Real-Estate Tax Rate

0.37%

Corporate Income Tax Rate(s)

6.5%

State and Local Public Construction Expenditures (in millions)

$3,827
B
Overall Rank 8
  • Project Labor Agreements A
  • Prevailing Wage A
  • Right to Work A
  • Public-Private Partnerships B
  • Workforce Development Incentives B
  • Career & Technical Education C
  • Job Growth Rate B

Compared to

Alabama
 
National
A
PLA
B
B
PPP
C
B
WDI
C
C
CTE
B
B
JGR
C

Compared to the National Average

Alabama
 
National
A
PLA
B
B
PPP
C
B
WDI
C
C
CTE
B
B
JGR
C

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ABC of Alabama

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