The Alaska Labor Law Guide

Minimum wage is the lowest hourly pay rate employers can legally pay covered employees. Alaska sets a statewide minimum wage above the federal floor, and most hourly employees are covered.

Upcoming Alaska minimum wage

• $15.00 per hour effective July 1, 2027.
• Adjusted annually for inflation each January 1 thereafter.

Alaska’s minimum wage is subject to indexing and adjustment rules, so verify the current figure with the Alaska Department of Labor before each schedule year.

Tipped minimum wage is the lowest hourly pay rate employers can legally pay employees who customarily and regularly receive tips.

Alaska does not allow a tip credit: employers must pay tipped employees the full state minimum wage before tips. Tips are in addition to — never a substitute for — the minimum wage.

Alaska has its own overtime law under the Alaska Wage and Hour Act. Non-exempt employees must be paid overtime at 1.5× their regular rate of pay for:

• All hours worked over 8 in a single workday, and
• All hours worked over 40 in a workweek.

Exceptions

• Certain employees are exempt under state and federal rules, including bona fide executive, administrative, and professional employees.
• Employers with fewer than four employees in the regular course of business may be exempt from the daily-overtime requirement.
• Voluntary flexible work-hour plans approved by the state can allow 10-hour days without daily overtime.

Alaska wage and hour laws require employers to provide minors under the age of 18 with a 30-minute unpaid meal break when scheduled to work five or more consecutive hours. The break must occur after the first hour and a half of work and before the beginning of the last hour of work.

For employees 18 and older, Alaska does not require meal or rest breaks — but breaks under 20 minutes that you do offer generally count as paid time under federal rules.

Vacation leave

Alaska does not require private employers to provide paid or unpaid vacation leave. If an employer chooses to offer it, the terms of the policy or employment agreement govern.

Sick leave

Alaska voters approved paid sick leave effective July 1, 2025. Employees generally accrue one hour of paid sick leave for every 30 hours worked, with annual usage caps that depend on employer size.

Holidays

Alaska does not 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 the company’s policy and employee contract.

Alaska law restricts the hours and types of work minors may perform. Requirements vary based on the minor’s age and whether school is in session.

Work hour limits for minors under 16 (when school is in session)

• May work only between 5:00 a.m. and 9:00 p.m.
• May not work more than 23 hours in a workweek.
• School hours plus work may not exceed 9 hours in a day.

Additional restrictions

• Certain hazardous occupations are prohibited for all minors.
• Minors under 17 generally need a state work permit.
• Domestic work and casual babysitting are largely exempted.