The Alaska Labor Law Guide

Minimum wage is the lowest hourly rate an employer can legally pay covered employees. The federal rate is a floor, and states may set a higher one.

Alaska sets a statewide minimum wage under the Alaska Wage and Hour Act. The current rate is $13.00 per hour, effective July 1, 2025.

Scheduled increases

The rate is set to rise:

• $14.00 per hour effective July 1, 2026
• $15.00 per hour effective July 1, 2027

Alaska's minimum wage is also subject to indexing and adjustment rules for future years.

Tipped minimum wage is the lowest hourly rate for employees who customarily and regularly receive tips.

Alaska does not allow a tip credit. Employers must pay tipped employees the full Alaska minimum wage for all hours worked, no matter how much they earn in tips. Tips cannot count toward the employer's minimum wage obligation.

Alaska has its own overtime law under the Alaska Wage and Hour Act. Non-exempt employees must be paid one and one-half (1.5) times their regular rate for:

• All hours worked over eight (8) hours in a single workday, and
• All hours worked over forty (40) hours in a workweek.

Hours already paid as daily overtime are not counted again toward weekly overtime.

Exceptions

• Bona fide executive, administrative, and professional employees may be exempt from Alaska's overtime requirements, determined using the federal FLSA exemption tests.
• Employers with fewer than four employees in the regular course of business are exempt from Alaska's overtime requirements but still have to comply with minimum wage laws. All actively engaged officers and part-time employees count when determining employer size.

For minors under 18, Alaska requires a 30-minute unpaid meal or rest break when the minor is scheduled to work six or more consecutive hours. The break must fall after the first hour and a half of work and before the beginning of the last hour of work.

A minor who works five consecutive hours without a break is entitled to a 30-minute break before continuing to work.

Employees age 18 and over are not owed meal or rest breaks. If an employer does provide them, breaks of 20 minutes or less must be paid. Meal periods longer than 20 minutes do not have to be paid, as long as the employee is completely relieved of all duties and performs no work during the meal.

Vacation leave

Alaska law does not require private employers to provide paid or unpaid vacation leave. When an employer offers it, the terms are generally set by the employer's written policy or employment agreement.

Family and medical leave

Eligible employees may take up to 12 weeks of unpaid, job-protected leave under the federal Family and Medical Leave Act (FMLA) for qualifying reasons, including a serious health condition or certain military-related reasons.

Paid sick leave (effective July 1, 2025)

Alaska voters approved Ballot Measure 1 on November 5, 2024, creating a statewide paid sick leave requirement effective July 1, 2025. It generally applies to employees statewide, subject to statutory exclusions.

Employees accrue paid sick leave at one hour for every 30 hours worked.

Employers may cap annual accrual and use as follows:

• 40 hours per year for employers with fewer than 15 employees
• 56 hours per year for employers with 15 or more employees

Paid sick leave may be used for:

• The employee's own illness, injury, or health condition
• Caring for a family member with an illness, injury, or health condition
• Certain qualifying absences related to domestic violence, sexual assault, or stalking involving the employee or a family member

Holidays

Alaska does not require private employers to provide paid or unpaid holiday leave. To offer it, the employer must do so under both company policy and the employee's contract.

Alaska limits the hours and types of work minors may perform. The rules depend on the minor's age and whether school is in session.

Minors under 16 when school is in session

Minors under 16 years of age:

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

Minors under 16 during school vacations

• May work up to 40 hours per week
• May work only between 5:00 a.m. and 9:00 p.m.

Permitted occupations for minors under 14

Minors under 14 may generally work only in these occupations:

• Newspaper sales or delivery
• Babysitting
• Domestic employment in or about private homes
• Employment in the entertainment industry

Employment in the entertainment industry requires an approved work permit.

Additional restrictions

Alaska also imposes restrictions on:

• The types of occupations minors may perform
• Hazardous work
• Work involving alcohol-related establishments or activities

These restrictions vary based on the minor's age and the nature of the work.