Alaska — Wage & Hour

Effective July 1, 2026, Alaska's minimum wage is $14.00 per hour. This follows a scheduled increase under Ballot Measure 1 (passed November 2024), which set the rate at $13.00 per hour effective July 1, 2025 and now increases it to $14.00 per hour, with a further step-up to $15.00 per hour scheduled for July 1, 2027. Beginning January 1, 2028, the minimum wage will adjust annually based on inflation using the Consumer Price Index for all urban consumers (Anchorage metropolitan area).

Statutory floor — federal minimum wage plus $2.00. Alaska Statute 23.10.065(d) provides a permanent statutory floor: if the scheduled or CPI-adjusted Alaska minimum wage ever falls below $2.00 above the federal minimum wage, Alaska's wage must be set at that higher amount ($2.00 above federal). At present, the federal minimum wage under 29 U.S.C. § 206(a)(1)(C) remains $7.25 per hour, so the floor is not operative. However, the statutory floor remains binding and would apply if the federal minimum ever rises enough to surpass (or nearly surpass) the CPI-adjusted Alaska rate.

No tip credit. Alaska law prohibits employers from using tips or gratuities as a credit toward the minimum wage. Tipped employees must receive the full Alaska minimum wage in direct wages, before tips, as mandated by AS 23.10.065(a). This approach departs from the federal Fair Labor Standards Act, which allows a tip credit in most states but not Alaska.

Sources:

Source: Alaska Statute 23.10.065

Source: Alaska Department of Labor and Workforce Development — Minimum Wage Act

Source: July 2026 minimum wage increase news release, Alaska DOLWD

Source: 29 U.S.C. § 206(a)(1)(C) (federal minimum wage)

Alaska requires overtime pay at 1.5 times the regular rate for hours worked over 8 in a single day and for hours worked over 40 in a workweek. Both thresholds apply independently—an employee who works 9 hours in one day is entitled to 1 hour of overtime for that day even if weekly hours remain under 40. However, hours already compensated as daily overtime are not counted again toward the weekly 40-hour threshold. Employers with fewer than four employees are exempt from Alaska's overtime requirements.

Source: Alaska Department of Labor and Workforce Development, Wage and Hour Act

Alaska law requires meal breaks only for employees under 18 years of age. Employers must provide a break period of at least 30 minutes for minors ages 14 through 17 who work five or more consecutive hours and are going to continue working. This unpaid break is mandatory under Alaska Statute 23.10.350(c).

The statute establishes two independent trigger points. First, a minor scheduled to work six consecutive hours or more is entitled to a 30-minute break during the course of the shift; the break may be scheduled at the employer's convenience but must occur after the first hour and a half of work and before the beginning of the last hour of work. Second, any minor who actually works five consecutive hours without a break is entitled to a 30-minute break before continuing to work — this prong applies regardless of the scheduled shift length.

Adult employees (age 18 and over) have no state-law entitlement to meal or rest breaks. Alaska Statute 23.10.350 applies only to minors, and Alaska has not enacted a general meal-period or rest-break requirement for adults. Employers who voluntarily provide breaks must comply with federal Fair Labor Standards Act payment rules: breaks of less than 20 minutes are compensable work time, while bona fide meal periods of 30 minutes or more may be unpaid if the employee is completely relieved of duties.

Exemptions. The minor-break requirement does not apply to individuals employed in the catching, trapping, cultivating or farming, netting, or taking of fish, shellfish, or other aquatic life, nor to individuals employed by a member of their family (defined as spouse, parent, stepparent, grandparent, step-grandparent, great grandparent, step-great grandparent, brother, sister, uncle, aunt, great-uncle, or great-aunt, whether of the whole or half blood, by adoption, or by marriage). AS 23.10.350(e).

Remedy for violation. Failure to provide the required unpaid break creates a minimum-wage liability under AS 23.10.065 for the break the employee did not receive or received late. A claim for minimum wage in lieu of the unpaid break is enforceable under AS 23.10.110. AS 23.10.350(d).

Modification by agreement. The break requirement may be modified by the terms of a collective bargaining agreement or on occasion by mutual agreement between the employer and the minor employee. AS 23.10.350(c).

Source: Alaska Department of Labor and Workforce Development, Wage and Hour FAQ

Alaska’s paid sick leave statute (effective July 1, 2025) specifies when accrued leave may be used and directs both employee notice and employer documentation practices:

Permitted uses: Employees may use paid sick leave for their own illness, injury, or health condition (including preventive care or medical diagnosis and treatment); to care for a family member (child, parent, spouse, domestic partner, grandparent, grandchild, or sibling) with an illness, injury, or health condition (including preventive care); or for reasons relating to domestic violence, sexual assault, or stalking involving themselves or a family member. These include seeking medical attention, counseling, victim services, relocation, or participation in legal proceedings.

Employee notice: If the need for paid sick leave is foreseeable, employees must provide advance notice. When unforeseeable, notice must be given as soon as practicable. Employers may require employees to follow usual notice procedures, so long as these are not stricter than the statute allows.

Employer documentation: Employers may only require documentation if an employee is absent for more than three consecutive scheduled workdays. For illness, documentation may be a simple statement that leave was needed for statutory reasons. For domestic violence, sexual assault, or stalking, documentation may be a court record, police report, or provider/attorney statement. Employers cannot require employees to disclose the condition’s specific details—only that the leave is for a permitted statutory reason.

Effective date: July 1, 2025.

Source: Alaska Statute 23.10.067

Alaska sets its white-collar overtime exemption salary threshold at twice the state minimum wage for a 40-hour workweek, creating an automatic escalation mechanism that diverges significantly from the federal floor. Under Alaska Statute 23.10.055(b), an employee in a bona fide executive, administrative, or professional capacity must be compensated on a salary or fee basis at a rate of not less than two times the state minimum wage for the first 40 hours of employment each week, exclusive of board or lodging furnished by the employer.

Current and scheduled thresholds. The Alaska Department of Labor confirms that the salary threshold tracks Alaska's minimum-wage increases under Ballot Measure 1, approved by voters in November 2024, with the following scheduled thresholds:

• $1,040/week ($54,080/year) effective July 1, 2025 (based on $13.00/hour minimum wage)
• $1,120/week ($58,240/year) effective July 1, 2026 (based on $14.00/hour minimum wage)
• $1,200/week ($62,400/year) effective July 1, 2027 (based on $15.00/hour minimum wage)

Beginning January 1, 2028, the minimum wage will adjust annually for inflation based on the Consumer Price Index for all urban consumers in the Anchorage metropolitan area, and the salary threshold will continue to equal two times the indexed minimum wage for 40 hours.

Calculation method. The two-times formula applies to the hourly minimum wage multiplied by 40 hours. For example, at a $14.00/hour minimum wage (effective July 1, 2026), the weekly threshold is $14.00 × 2 × 40 = $1,120/week, or $58,240 annually (52 weeks). The statute excludes board, lodging, or other expenses reimbursed by the employer from counting toward the salary requirement.

Duties test remains federal. Alaska Statute 23.10.055(c)(1) defines "bona fide executive, administrative, or professional capacity" by reference to the federal Fair Labor Standards Act definitions under 29 U.S.C. §§ 201–219 and the implementing regulations at 29 C.F.R. Part 541. An employee must satisfy both the federal duties test and Alaska's higher salary threshold to qualify for exemption. Meeting the salary threshold alone does not confer exempt status; the employee's actual job duties must still fit the applicable FLSA exemption category.

Mid-year effective dates and compliance timing. Unlike many states that adjust wage-related thresholds on January 1, Alaska's scheduled increases take effect on July 1 each year through 2027, then shift to January 1 for CPI adjustments beginning in 2028. Employers must audit exempt employee salaries before each July 1 effective date and adjust compensation or reclassify employees as non-exempt if their salaries fall below the new threshold. An employee earning $55,000 annually is exempt in Alaska on June 30, 2026, but becomes non-exempt on July 1, 2026, when the threshold rises to $58,240, unless the employer increases the salary to meet or exceed the new threshold.

Source: Alaska Statute 23.10.055, Alaska Department of Labor and Workforce Development

Source: Ballot Measure 1 FAQ, Alaska Department of Labor and Workforce Development

Source: Alaska Minimum Wage will increase July 1, 2025, Alaska Department of Labor and Workforce Development

Alaska requires employers to pay public school bus drivers at a minimum wage rate of two times the standard Alaska minimum wage for all hours worked, regardless of whether compensation is measured by time, commission, or otherwise. This requirement, codified at Alaska Statute 23.10.065(b), remains in effect, but as of July 1, 2026, and July 1, 2027, the underlying minimum wage figures have increased due to scheduled statutory amendments following Ballot Measure 1 (November 2024).

Current and scheduled rates. Alaska's standard minimum wage is now set as follows:

• $13.00/hour effective July 1, 2025
• $14.00/hour effective July 1, 2026
• $15.00/hour effective July 1, 2027

Accordingly, the minimum wage for public school bus drivers is:

• $26.00/hour effective July 1, 2025 (2 × $13.00)
• $28.00/hour effective July 1, 2026 (2 × $14.00)
• $30.00/hour effective July 1, 2027 (2 × $15.00)

Beginning January 1, 2028, the standard minimum wage will adjust annually for inflation (CPI-U for Anchorage), per AS 23.10.065(a)(4), and the school bus driver minimum wage will continue to be set at two times that indexed figure.

No fringe-benefit credit. Employers cannot apply fringe benefits (health, retirement, other non-wage) as a credit toward the minimum wage; the two-times rate must be met in direct wages. AS 23.10.065(b) explicitly prohibits crediting benefits for wage compliance.

Contracted transportation services — wage adjustment timing. For employers contracting with the Department of Education and Early Development, school districts, or regional educational attendance areas, Alaska Statute 23.10.065(c) allows the wage floor for bus drivers to be set at the time of contract execution or renewal, rather than on each July 1 statutory increase. When a contract term ends and is renewed, the wage must be increased to the then-current two-times minimum wage. The adjustment exception does not exempt drivers from the wage floor—only the timing of compliance is affected during the contract period.

Coverage/reminder. The phrase "public school bus driver" is not further defined by statute or clarified agency guidance, so practitioners should continue to reference the statutory text for coverage analysis, including contractor-employed drivers, with reminder of the specific timing rule for contract renewal.

Overtime. The two-times minimum wage is the driver’s base rate for straight time. Overtime must be paid at 1.5× that rate for hours over 8 in a day or 40 in a week under AS 23.10.050(a).

This update reflects scheduled statutory rate changes signed into law after November 2024 that are now effective.

Source: Alaska Statute 23.10.065, Alaska Department of Labor and Workforce Development

Source: Alaska Department of Labor and Workforce Development — 2026 Minimum Wage Notice