The Alaska Labor Law Guide

Minimum wage is the lowest hourly pay rate that employers are legally obligated to pay employees. The federal minimum wage is a wage baseline, but different states, cities, and regions can adopt their own rates. 

As of 2024, the minimum wage is $11.73 per hour for most employees.

Starting January 1st, 2025, the minimum wage will be $11.91 for most employees. Then:

• Starting July 2025, $13 per hour for most employees

• Starting July 2026, $14 per hour for most employees

• Starting July 2027, $15 per hour for most employees

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Tipped minimum wage is the lowest hourly pay rate employers are legally obligated to pay employees who earn a significant portion of their income through tips. 

Alaska currently does not allow a tip credit. Employers must pay the full state minimum wage, regardless of how much the employee makes in tips.

The state of Alaska has its own overtime rules and requires overtime pay at 1.5 times the employee’s regular pay rate if the employee works more than 8 hours a day as well as weekly overtime pay for hours worked over 40 hours of work in a workweek.

Exceptions:

• Certain employee roles in executive, administrative, and professional roles may not be eligible for overtime. 

• Small businesses with less than four employees may also not be required to pay overtime to their employees.

Alaska wage and hour laws generally require employers to provide at least a 30-minute break to nonexempt employees ages 14-17 as long as they are scheduled to work six consecutive hours or more.

• The break must also occur after the first hour and a half of work but before the beginning of the last hour of work. 

• Minors who work for five consecutive hours without a break are entitled to a break of at least 30 minutes before continuing to work. 

Alaska employers are not required to provide breaks to employees aged 18 and over. 

• However, if an employer chooses to give a break, it must pay its employees for the time on break if it is 20 minutes or less. 

• Employers' meal periods of over 20 minutes do not need to be paid so long as employees are entirely relieved of all duties and do not perform any work.

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Vacation leave
In Alaska, employers are not required to provide paid or unpaid vacation leave under federal or state law. If an employer wants to offer their employees paid or unpaid vacation leave, it must be under both the company’s policy and employee contract.

Paid Sick Leave
The Family and Medical Leave Act allows 12 weeks of unpaid sick leave, but under Alaska state law, sick leave is not guaranteed. Employers also are not required to give employees bereavement leave or time off to attend a funeral. 

Alaska voters passed Measure 1 on November 5th, 2024, which will provide paid sick leave effective July 1, 2025. The law will apply to all nonexempt employees and employees who are exempt from minimum wage and overtime laws under the “white collar” exceptions. 

Employees are required to accrue at least one hour of leave for every 30 hours they work – 56 hours for large employers and 40 hours for small employers. They can use the leave for their own or a family member’s illness, injury, or health conditions. Certain absences are also eligible for leave including the employee’s family member’s domestic violence, sexual assault, or stalking.

Holidays
Alaska doesn’t require private employers to provide paid or unpaid holiday leave. If an employer wants to offer paid or unpaid holiday leave to their employees, it must be under both the company’s policy and employee contract.

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Minors who are 14-16 years old must have a work permit on file with the Department.

Minors who are 14 and 15 years old can only work between 5 AM and 9 PM when school is in session. The total hours these minors can work while school is in session cannot exceed 23 hours per week.

During school vacations, work hours are limited to 40 hours per week (5 AM-9 PM).

If an employer operates a restaurant or sells alcohol, minors under 17 years old need an approved work permit.

Minors under 14 can only work in newspaper sales and delivery, babysitting, domestic work, and the entertainment industry with an approved work permit from the Alaska Wage and Hour Administration.

See here for more restriction details based on the minor’s age.

Hiring
As of 2024, Alaska does not have a pay transparency law. Employers can ask applicants about their criminal history anytime, and there is no “ban the box” legislation.

Firing
Generally, Alaska employers have the right to terminate employees at-will for nearly any reason and for no reason at all, with the exception of discrimination or unlawful reasons.