Alaska Employment Law 2026

2.1 Wage and Hour Rights

Alaska provides comprehensive wage and hour protections that often exceed federal minimum standards.

2.1.1 Minimum Wage

Current Alaska Minimum Wage (2026):

Minimum wage effective July 1, 2026: $14.00 per hour

Statutory Authority:

According to Alaska Statute 23.10.065(a), as amended by Ballot Measure 1 (November 2024):

“(1) Beginning July 1, 2025, the minimum wage shall be $13.00 per hour; (2) Effective July 1, 2026, the minimum wage shall be $14.00 per hour; (3) Effective July 1, 2027, the minimum wage shall be $15.00 per hour; and (4) Thereafter the minimum wage shall be adjusted annually for inflation.”

Source: Alaska Statute 23.10.065 Official text: Alaska Department of Labor and Workforce Development Available at: https://labor.alaska.gov/lss/forms/Summary_of_Alaska_Wage_and_Hour_Act-01-2025.pdf Last amended: November 2024 (Ballot Measure 1)

Official Notice from Alaska Department of Labor:

According to the Alaska Department of Labor and Workforce Development press release dated June 11, 2025:

“Alaska’s minimum wage will increase to $13.00 per hour on July 1, 2025. It will subsequently increase to $14.00 on July 1, 2026, and to $15.00 on July 1, 2027. Thereafter, the minimum wage will be adjusted annually for inflation starting January 1, 2028.”

Source: Alaska Department of Labor and Workforce Development Press Release Published: June 11, 2025 Available at: https://labor.alaska.gov/news/2025/news25-11.htm

Inflation Adjustments:

Beginning January 1, 2028, Alaska’s minimum wage will be adjusted annually for inflation based on:

• The Consumer Price Index for all urban consumers (CPI-U)
• Anchorage metropolitan area
• Compiled by the Bureau of Labor Statistics, U.S. Department of Labor
• The department will round the adjusted minimum hourly wage up to the nearest ten cents

Federal Minimum Wage Protection:

Alaska Statute 23.10.065(d) provides:

“If at any point the minimum wage determined under (a) of this section is less than two dollars over the federal minimum wage, the Alaska minimum wage shall be set at two dollars over the federal minimum wage.”

Current federal minimum wage: $7.25 per hour (unchanged since July 24, 2009)

Source: Fair Labor Standards Act, 29 U.S.C. § 206 DOL information: https://www.dol.gov/agencies/whd/minimum-wage

Tips and Gratuities:

According to Alaska Statute 23.10.065(a):

“An employer may not apply tips or gratuities bestowed upon employees as a credit toward payment of the minimum hourly wage required by this section. Tip credit as defined by the Fair Labor Standards Act of 1938 as amended does not apply to the minimum wage established by this section.”

This means:

• Alaska does not allow tip credits
• All employees must receive the full minimum wage regardless of tips received
• Tips belong entirely to the employee
• Employers cannot use tips to satisfy minimum wage obligations

Source: Alaska Statute 23.10.065(a) Available at: Alaska State Legislature Effective: July 1, 2026

2.1.2 School Bus Driver Minimum Wage

Alaska provides special minimum wage protections for school bus drivers.

School Bus Driver Wage Requirement:

According to Alaska Statute 23.10.065(b):

“An employer shall pay to each person employed as a public school bus driver wages at a rate of not less than two times the minimum wage established under (a) of this section, for hours worked in a pay period, whether work is measured by time, commission, or otherwise.”

For 2026:

• Standard minimum wage effective July 1, 2026: $14.00/hour
• School bus driver minimum wage: $28.00/hour (2 × $14.00)

Source: Alaska Statute 23.10.065(b) Official text: Alaska Legislature website Calculation basis: Two times the current minimum wage

Effective Dates for School Bus Contractors:

According to Alaska Statute 23.10.065(c):

“Notwithstanding (b) of this section, an employer who contracts with the Department of Education and Early Development, a school district, or a regional educational attendance area to provide school bus transportation services is not required to adjust school bus driver wages under (b) of this section, except when entering into or renewing the contract.”

Source: Alaska Statute 23.10.065(c)

2.1.3 Overtime Requirements

Alaska provides both daily and weekly overtime protections, which is more protective than federal law.

Alaska Overtime Standards:

According to Alaska Statute 23.10.060(b):

“If an employer finds it necessary to employ an employee for hours in excess of the limits set in this subsection, overtime compensation for the overtime at the rate of one and one-half times the regular rate of pay shall be paid. An employee is entitled to overtime compensation for hours worked in excess of eight hours a day. An employee is also entitled to overtime compensation for hours worked in excess of 40 hours a week; in determining whether an employee has worked more than 40 hours a week, the number of hours worked shall be determined without including hours that are worked in excess of eight hours in a day because the employee has or will be separately awarded overtime compensation based on those hours.”

Source: Alaska Statute 23.10.060(b) Official text: https://labor.alaska.gov/lss/forms/pam100.pdf Last confirmed: January 2026

Overtime Rate: 1.5 times the regular rate of pay

Overtime Triggers:

1. Daily overtime: Hours worked over 8 hours in a single day
2. Weekly overtime: Hours worked over 40 hours in a workweek (excluding hours already compensated as daily overtime)

Example Calculation:

An employee works the following schedule:

• Monday: 10 hours (2 hours daily OT)
• Tuesday: 9 hours (1 hour daily OT)
• Wednesday: 8 hours (no OT)
• Thursday: 8 hours (no OT)
• Friday: 10 hours (2 hours daily OT)

Total hours: 45 hours Daily overtime: 5 hours (at 1.5× rate) Straight time hours: 40 hours (at regular rate) Weekly overtime: 0 hours (the 5 hours over 40 were already paid as daily overtime)

Coverage:

According to Alaska Statute 23.10.060(a):

“An employer who employs employees engaged in commerce or other business or in the production of goods or materials in the state may not employ an employee for a workweek longer than 40 hours or for more than eight hours a day.”

Source: Alaska Statute 23.10.060(a) Available at: Alaska Legislature official statutes

Exemptions from Overtime:

Alaska Statute 23.10.060(d) provides extensive exemptions from overtime requirements, including:

• Employers with fewer than four employees in regular course of business
• Agricultural employees
• Small mining operations (12 or fewer employees)
• Certain newspaper employees
• Seamen
• Certain forestry and lumbering operations (12 or fewer employees)
• Hospital employees under certain conditions
• Employees under flexible work hour plans
• Additional categories specified in statute

Source: Alaska Statute 23.10.060(d) Full list available at: https://labor.alaska.gov/lss/forms/pam100.pdf

Federal Overtime Standards:

Federal law requires overtime only for hours over 40 in a workweek (no daily overtime).

According to the Fair Labor Standards Act, 29 U.S.C. § 207(a)(1):

“Except as otherwise provided in this section, no employer shall employ any of his employees who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, for a workweek longer than forty hours unless such employee receives compensation for his employment in excess of the hours above specified at a rate not less than one and one-half times the regular rate at which he is employed.”

Source: Fair Labor Standards Act Citation: 29 U.S.C. § 207(a)(1) Official text: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section207 DOL guidance: https://www.dol.gov/agencies/whd/overtime

When Federal vs. State Law Applies:

When both federal and state law apply, the law providing greater protection to the employee prevails. Since Alaska requires daily overtime (after 8 hours/day) in addition to weekly overtime, Alaska law is more protective for covered employees.

2.1.4 Meal and Rest Break Requirements

Alaska Law on Breaks:

Alaska does not have state-specific requirements for meal or rest breaks for adult employees (age 18 and over).

Verification of Legislative Search:

Search conducted: Alaska Legislature website and Alaska Department of Labor resources Search terms: “meal break,” “rest break,” “employee breaks” Date: January 19, 2026 Result: No Alaska statute requires meal or rest breaks for adult employees

Federal Law (FLSA):

According to the U.S. Department of Labor:

“Federal law does not require lunch or coffee breaks. However, when employers do offer short breaks (usually lasting about 5 to 20 minutes), federal law considers the breaks as compensable work hours that would be included in the sum of hours worked during the work week and considered in determining if overtime was worked.”

Source: U.S. Department of Labor, Wage and Hour Division Available at: https://www.dol.gov/general/topic/workhours/breaks Last accessed: January 19, 2026

For Alaska Employees:

Meal and rest break policies are determined by:

• Employer policy
• Employment contracts
• Collective bargaining agreements (if applicable)
• Industry standards
• Workplace practices

Employer Practices:

Alaska employers may establish break policies through:

• Written employment policies
• Employee handbooks
• Collective bargaining agreements
• Individual employment contracts

Note for Minors:

Different rules apply to employees under age 18. Child labor laws provide specific protections for minor workers.

2.1.5 Final Paycheck Requirements

Alaska has strict requirements for payment of final wages upon termination of employment.

Final Paycheck Timing:

According to Alaska Statute 23.05.140(b):

“If the employment is terminated, all wages, salaries or other compensation for labor or services become due immediately and shall be paid within the time required by this subsection at the place where the employee is usually paid or at a location agreed upon by the employer and employee. If the employment is terminated by the employer, regardless of the cause for the termination, payment is due within three working days after the termination. If the employment is terminated by the employee, payment is due at the next regular pay day that is at least three days after the employer received notice of the employee’s termination of services.”

Source: Alaska Statute 23.05.140(b) Official text: https://labor.alaska.gov/lss/forms/pam100.pdf Last amended: Effective per statute

Summary of Requirements:

When employer terminates employee:

• Timeline: Within 3 working days after termination
• Applies regardless of reason for termination (with cause, without cause, layoff, etc.)
• “Working days” means business days, excluding weekends and holidays

When employee resigns:

• Timeline: Next regular payday that is at least 3 days after employer received notice
• Employer must have received notice of resignation
• Payment due on the scheduled payday if at least 3 days have passed

Payment Location:

• At the place where employee is usually paid, OR
• At a location agreed upon by employer and employee

What Must Be Included:

Final paycheck must include:

• All wages earned through the last day worked
• Unused vacation pay (if employer policy or contract requires payout)
• Accrued but unused paid sick leave (only if employer policy requires payout—Ballot Measure 1 does not require payout on termination)
• Commissions earned according to employment agreement
• Bonuses owed according to employment agreement

Penalties for Late Payment:

According to Alaska Statute 23.05.140(d):

“If an employer violates (b) of this section by failing to pay within the time required by that subsection, the employer may be required to pay the employee a penalty in the amount of the employee’s regular wage, salary, or other compensation from the time of demand to the time of payment, or for 90 working days, whichever is the lesser amount.”

Source: Alaska Statute 23.05.140(d)

Penalty Calculation:

When the Alaska Department of Labor brings an action under AS 23.05.140(e):

“The amount of the penalty shall be calculated based on the employee’s straight time rate of pay for an eight-hour day.”

Source: Alaska Statute 23.05.140(e)

Wages in Dispute:

If the amount of wages is disputed, Alaska Statute 23.05.180 requires:

“If the amount of wages is in dispute, the employer shall give written notice to the employee of the wages, or part of the wages, that the employer concedes to be due, and shall pay that amount, without condition, within the time set by this chapter. The employee retains all remedies that the employee might otherwise be entitled to, including those provided under this chapter or AS 23.10, to any balance claimed.”

Source: Alaska Statute 23.05.180(a) Official citation: Alaska Statutes Available at: https://labor.alaska.gov/lss/forms/pam100.pdf

Employee Rights:

“The acceptance by an employee of a payment under this section does not constitute a release of the balance of the claim, and a release required by an employer as a condition of payment is void.”

Source: Alaska Statute 23.05.180(b)

2.1.6 Pay Period Requirements

Pay Frequency:

According to Alaska Statute 23.05.140(a):

“An employee and employer may agree in an annual initial contract of employment to monthly pay periods when the employer shall pay the employee for all labor performed or services rendered. Otherwise, the employer shall establish monthly or semi-monthly pay periods, at the election of the employee.”

Source: Alaska Statute 23.05.140(a) Official text: Alaska Legislature Available at: https://labor.alaska.gov/lss/forms/pam100.pdf

Summary:

• With annual written contract: Monthly pay periods allowed
• Without such contract: Employee chooses between monthly or semi-monthly pay periods
• Employers must honor the employee’s election

Notice of Wage Payments:

According to Alaska Statute 23.05.160:

“An employer shall notify an employee in writing at the time of hiring of the day and place of payment, and the rate of pay, and of any change with respect to these items on the payday before the time of change. An employer may give this notice by posting a statement of the facts, and keeping it posted conspicuously at or near the place of work where the statement can be seen by each employee as the employee comes or goes to the place of work.”

Source: Alaska Statute 23.05.160 Available at: Alaska statutes official compilation

Required Notifications:

1. Day of payment
2. Place of payment
3. Rate of pay
4. Any changes to the above (must notify on payday before change takes effect)

Method of Notification:

• Written notice at time of hiring, OR
• Posted statement in conspicuous location at workplace

Wages Earned Before Strike, Lockout, or Layoff:

According to Alaska Statute 23.05.170:

“An employee who goes on strike, or is temporarily laid off or subjected to an employer lockout during a pay period shall receive the portion of compensation earned on or before the next regular payday established as required in this chapter.”

Source: Alaska Statute 23.05.170

2.2 Paid Sick Leave (Effective July 1, 2025)

Alaska now requires employers to provide paid sick leave following the passage of Ballot Measure 1 in November 2024.

Paid Sick Leave Requirements:

According to Alaska Statute 23.10.066:

“Employers in Alaska are required to provide their employees paid sick leave as follows:

(1) Employers with 15 or more employees shall allow employees to accrue a minimum of one hour of paid sick leave for every 30 hours worked, but employees are not entitled to accrue or use more than 56 hours of paid sick leave per year, unless their employer sets a higher limit.

(2) Employers with fewer than 15 employees shall allow employees to accrue a minimum of one hour of paid sick leave for every 30 hours worked, but employees are not entitled to accrue or use more than 40 hours of paid sick leave per year, unless their employer sets a higher limit.”

Source: Alaska Statute 23.10.066 Effective date: July 1, 2025 Official text: https://labor.alaska.gov/lss/forms/pam100.pdf Last enacted: November 2024 (Ballot Measure 1)

Accrual Rates:

Large employers (15+ employees):

• Accrual: 1 hour of paid sick leave per 30 hours worked
• Annual cap: 56 hours per year (unless employer sets higher limit)

Small employers (fewer than 15 employees):

• Accrual: 1 hour of paid sick leave per 30 hours worked
• Annual cap: 40 hours per year (unless employer sets higher limit)

Exempt Employees:

According to AS 23.10.066(3):

“Employees who are exempt from overtime requirements under 29 U.S.C. § 213(a)(1) shall be assumed to work 40 hours in each work week for purposes of paid sick leave accrual unless their normal work week is less than 40 hours, in which case paid sick leave accrues based upon that normal work week.”

Source: Alaska Statute 23.10.066(3)

Carryover:

According to AS 23.10.066(4):

“Paid sick leave shall carry over to the following year, but an employer is not required to allow an employee to use more than the applicable amounts of paid sick leave described in subsections (a) or (b) per year.”

Source: Alaska Statute 23.10.066(4)

When Accrual Begins:

According to AS 23.10.066(5):

“Paid sick leave as provided in this section shall begin to accrue at the commencement of employment or July 1, 2025, whichever is later. An employee shall be entitled to use paid sick leave as it is accrued.”

Source: Alaska Statute 23.10.066(5) Effective date: July 1, 2025

Existing Paid Leave Policies:

According to AS 23.10.066(6):

“Any employer with a paid leave or paid time off policy, who makes available an amount of paid leave sufficient to meet the requirements of this section that may be used for the same purposes and under the same conditions as paid sick leave under this section, is not required to provide additional paid sick leave.”

Source: Alaska Statute 23.10.066(6)

Permitted Uses of Paid Sick Leave:

According to Alaska Statute 23.10.067(1):

“Employees shall be permitted to use paid sick leave for:

(A) An employee’s mental or physical illness, injury or health condition; the employee’s need for medical diagnosis, care, or treatment; or the employee’s need for preventative medical care;

(B) Care or assistance to the employee’s family member relating to the needs described in subsection (A) of this paragraph; ‘family member’ means an immediate family member as defined pursuant to AS 39.52.960(11); a domestic partner; a foster child, legal ward, or person to whom an employee stands in loco parentis; a foster parent, adoptive parent, legal guardian, or a person who stood in loco parentis when the employee was a minor child; or any other individual related by blood or whose close association is the equivalent of a family relationship; or

(C) absences necessary due to domestic violence, sexual assault, or stalking, provided the leave is to allow the employee to obtain for the employee or a family member: medical or psychological attention; services from a victim’s aid organization; relocation or steps to secure an existing home; or legal services, including participation in any investigation or civil or criminal proceeding.”

Source: Alaska Statute 23.10.067(1) Official text: https://labor.alaska.gov/lss/forms/pam100.pdf

Notice Requirements:

According to AS 23.10.067(2):

“When the need for paid sick leave is foreseeable, the employee shall make a good faith effort to provide notice to the employer in advance of the use of paid sick leave and make a reasonable effort to schedule use of paid sick leave in a manner that does not unduly disrupt the employer’s operations.”

Source: Alaska Statute 23.10.067(2)

Documentation:

According to AS 23.10.067(3):

“For paid sick leave of more than three consecutive workdays, an employer may require reasonable documentation that the paid sick leave has been used for a purpose covered by (1) of this section; documentation signed by a health care professional indicating that paid sick leave is or was necessary shall be considered reasonable documentation for (1)(A) or (B) of this section purposes, but an employer may not require that the documentation explain the nature or details of the illness or underlying health needs.”

Source: Alaska Statute 23.10.067(3)

Retaliation Prohibited:

According to AS 23.10.067(5):

“An employer may not interfere with, restrain, or deny the exercise of: or the attempt to exercise, the right to paid sick leave under AS 23.10.066; an employer shall not:

(A) engage in retaliation or discrimination, or take any other adverse action, against an employee who utilizes, or attempts to utilize, their paid sick leave;

(B) require, as a condition of an employee’s taking paid sick leave under AS 23.10.066 and .067, that the employee search for or find a replacement worker to cover the hours during which the employee is using paid sick leave; or

(C) use an absence control policy that counts paid sick leave taken under AS 23.10.066 and .067 as an absence that may lead to or result in retaliation or any other adverse action.”

Source: Alaska Statute 23.10.067(5)

No Payout on Termination:

According to AS 23.10.068(a)(1):

“Nothing in AS 23.10.066 to .067 shall be construed as: Requiring financial reimbursement to an employee following the employee’s termination, resignation, retirement, or other separation for unused paid sick leave, unless otherwise required by law.”

Source: Alaska Statute 23.10.068(a)(1)

Employer Notice Requirement:

According to AS 23.10.068(c):

“Employers shall give employees written notice of the following at the commencement of employment or within 30 days of this section’s effective date, whichever is later: That beginning July 1, 2025, employees are entitled to paid sick leave and the amount of paid sick leave, the terms of its use guaranteed under AS 23.10.066 and .067, and that retaliation against employees who request or use paid sick leave is prohibited.”

Source: Alaska Statute 23.10.068(c) Deadline: July 1, 2025 (for existing employees) or at commencement of employment (for new hires)

Exemptions from Paid Sick Leave:

According to AS 23.10.069:

Exemptions include:

• Employment described in AS 23.10.070 (certain wage exemptions)
• Employment described in AS 23.10.071 (work therapy)
• Employment described in AS 33.30.201 and AS 33.30.191 (prisoners)
• Most employment described in AS 23.10.055(a)(1) through (a)(8) and (a)(10) through (a)(18)
• Railroad employees under federal Railroad Unemployment Insurance Act

Source: Alaska Statute 23.10.069 Full exemption list available at: https://labor.alaska.gov/lss/forms/pam100.pdf

Note: Employees in bona fide executive, administrative, or professional capacities (white-collar exemptions under AS 23.10.055(a)(9)) ARE covered by paid sick leave requirements despite being exempt from overtime.

2.3 Payment of Wages

Method of Payment:

According to Alaska Statute 23.10.040(a):

“An employer of labor performing services in this state shall pay the wages or other compensation for the services with lawful money of the United States or with negotiable checks, drafts or orders payable upon presentation without discount by a bank or depository inside the state.”

Source: Alaska Statute 23.10.040(a) Available at: Alaska Legislature official statutes

Direct Deposit:

According to Alaska Statute 23.10.043:

“An employer may not deposit wages due or to become due or an advance on wages to be earned in an account in a bank, savings and loan association or credit union unless the employee has voluntarily authorized the deposit. All deposits under this section shall be in a bank, savings and loan association or credit union of the employee’s choice.”

Source: Alaska Statute 23.10.043 Enacted: 1976

Key Requirements:

• Direct deposit must be voluntary
• Employee must provide written authorization
• Employee chooses the financial institution
• Employer cannot require direct deposit as condition of employment

Employee Rights Summary

Alaska employees are entitled to:

1. Minimum wage: $14.00/hour (effective July 1, 2026)
2. Overtime pay: 1.5× regular rate for hours over 8/day or 40/week
3. Timely final paycheck: Within 3 working days if terminated by employer, or next regular payday (at least 3 days) if employee resigns
4. Paid sick leave: 1 hour per 30 hours worked (40-56 hours/year cap depending on employer size) – effective July 1, 2025
5. Pay period choice: Monthly or semi-monthly (unless annual contract specifies monthly)
6. Written notice: Of pay rate, pay day, and pay location
7. Wage statement: Showing earnings and deductions each pay period
8. Direct deposit choice: Voluntary only, employee selects institution
9. Employer record access: Right to inspect personnel file
10. Protection from retaliation: For exercising wage and hour rights