Alaska Minimum Wage 2026: $14.00 Now, $15.00 on July 1, 2027
Alaska's minimum wage rose to $14.00 per hour on July 1, 2026 and reaches $15.00 on July 1, 2027 under Ballot Measure 1, with inflation adjustments from 2028. No tip credit, daily overtime after 8 hours, exempt salary thresholds, and paid sick leave rules.
Alaska's minimum wage is $14.00 per hour, effective July 1, 2026. It rises to $15.00 per hour on July 1, 2027, and from January 1, 2028 it will be adjusted every year for inflation. Alaska does not allow a tip credit, so tipped workers earn the full minimum wage in cash. The state also requires overtime after 8 hours in a day, not just 40 in a week, and Ballot Measure 1 added mandatory paid sick leave in 2025.
- Alaska's minimum wage is $14.00 per hour as of July 1, 2026, up from $13.00
- It rises to $15.00 on July 1, 2027, then adjusts annually for inflation starting January 1, 2028
- No tip credit: tipped employees must receive the full $14.00 in wages before tips
- Overtime is owed after 8 hours in a day or 40 in a week for employers with four or more employees
- Salaried exempt employees must earn at least twice the minimum wage, $1,120 per week from July 1, 2026
Current Alaska Minimum Wage
Alaska's minimum wage increased to $14.00 per hour on July 1, 2026, the second of three steps set by Ballot Measure 1, which voters approved in November 2024. The Alaska Department of Labor and Workforce Development's Ballot Measure 1 FAQ lays out the schedule: $13.00 on July 1, 2025, $14.00 on July 1, 2026, and $15.00 on July 1, 2027, after which the rate is adjusted annually for inflation using the Consumer Price Index.
The measure also includes a floor: if the federal minimum wage is ever raised above Alaska's rate, Alaska's rate resets to $2.00 above the federal minimum. The US Department of Labor's state minimum wage table lists Alaska at $14.00 as of July 1, 2026.
One knock-on effect matters for employers with salaried staff. Under Alaska Statute 23.10.055, exempt executive, administrative, and professional employees must be paid at least twice the minimum wage for a 40-hour week. That threshold became $1,120 per week ($58,240 per year) on July 1, 2026 and rises to $1,200 per week ($62,400 per year) on July 1, 2027, far above the federal $684 per week.
Alaska Minimum Wage vs Federal Minimum Wage
| Rate | Alaska | Federal (FLSA) |
|---|---|---|
| Minimum wage | $14.00 per hour | $7.25 per hour |
| Tipped cash wage | $14.00 | $2.13 |
| Difference | $6.75 above federal | Baseline |
| Last changed | See schedule below | July 24, 2009 |
When state and federal rates differ, the employer must pay the higher one for any employee covered by both laws. In Alaska the state rate is higher, so it governs for every covered employee, and the federal $7.25 is irrelevant except as a floor for the few workers the state law exempts. The federal rate has been $7.25 since July 24, 2009, and there is no scheduled federal increase. Our minimum wage by state guide compares every state.
Tipped Minimum Wage in Alaska
Alaska is one of a handful of states that prohibit the tip credit. Employers must pay tipped employees the full minimum wage of $14.00 per hour in cash, and tips are paid on top. The US Department of Labor's tipped wage table lists Alaska among the states that require the full state minimum wage before tips.
For restaurants and hospitality employers coming from tip-credit states, this is the single biggest payroll difference. A server working 30 hours a week costs at least $420 in base wages, not $63.90 at the federal $2.13 cash wage.
| Item | Alaska (2026) | Federal |
|---|---|---|
| Full minimum wage | $14.00 | $7.25 |
| Minimum cash wage for tipped employees | $14.00 | $2.13 |
| Maximum tip credit | $0.00 (no tip credit) | $5.12 |
Alaska Minimum Wage Increase Schedule
| Effective date | Minimum wage |
|---|---|
| Jan 1, 2021 | $10.34 |
| Jan 1, 2022 | $10.34 |
| Jan 1, 2023 | $10.85 |
| Jan 1, 2024 | $11.73 |
| Jan 1, 2025 | $11.91 |
| Jul 1, 2025 | $13.00 |
| Jul 1, 2026 | $14.00 |
| 2027-07-01 | $15.00 (scheduled) |
The next increase is to $15.00 on July 1, 2027. Starting January 1, 2028, the rate will be adjusted each year for inflation based on the CPI. Before Ballot Measure 1, Alaska already indexed its minimum wage annually, which is why the rate moved in small steps from 2021 to 2025; the measure paused that indexing in favor of the fixed $13, $14, and $15 steps.
Local Minimum Wages in Alaska
No Alaska city or borough sets its own minimum wage. Anchorage, Fairbanks, and Juneau all follow the statewide rate. The state's wage and hour law applies uniformly, so employers with locations across the state use a single rate.
How Alaska Compares to Nearby States
Employers that hire across state lines, or compete for workers with employers over the border, should know how Alaska compares. Rates below are the US Department of Labor's figures as of July 1, 2026.
| State | 2026 minimum wage | Tipped cash wage |
|---|---|---|
| Washington | $17.13 | Full minimum wage (no tip credit) |
| Oregon | $15.55 | Full minimum wage (no tip credit) |
| Hawaii | $16.00 | $14.75 |
| Alaska | $14.00 | $14.00 |
Every state listed pays more than Alaska today, but Alaska's scheduled increase to $15.00 in July 2027 and inflation indexing from 2028 will narrow the gap. Remote employees are generally owed the minimum wage of the state where they physically work, not where the employer is based, so an Alaska company with staff in a neighboring state must apply that state's rate to those employees.
Who Is Covered and Who Is Exempt
The Alaska Wage and Hour Act (AS 23.10.050 to 23.10.150) covers most employers. Key exemptions from the state minimum wage, listed on the Wage and Hour Act page, include:
- Individuals under 18 who work part time, no more than 30 hours a week
- Agricultural and aquaculture workers
- Domestic service employees in private homes
- Volunteers for nonprofit organizations
- Bona fide executive, administrative, and professional employees who meet the salary test (twice the minimum wage) and the duties test
- Certain computer professionals, flight crews, and other specified roles
School bus drivers have a special rule: they must be paid at least twice the Alaska minimum wage, which is $28.00 per hour at the 2026 rate. Overtime requirements do not apply to employers with fewer than four employees, though the minimum wage still does. Our exempt vs non-exempt guide covers the federal duties tests, which Alaska largely mirrors.
Overtime and the Minimum Wage
Alaska is stricter than federal law. Under AS 23.10.060, overtime at one and a half times the regular rate is owed for hours over 8 in a day or over 40 in a week, whichever produces more overtime. A 10-hour shift generates 2 hours of overtime even in a 30-hour week. The daily rule applies to employers with four or more employees.
Here is what a 45-hour week costs at the Alaska minimum wage under the 40-hour rule:
| Line | Hours | Rate | Pay |
|---|---|---|---|
| Regular hours | 40 | $14.00 | $560.00 |
| Overtime hours | 5 | $21.00 (1.5x) | $105.00 |
| Gross pay for the week | 45 | $665.00 |
Overtime must be calculated on the employee's regular rate, which includes shift differentials and non-discretionary bonuses, not just the base wage. See our guide to overtime pay laws in the US and use the overtime calculator to check a specific week.
What a Minimum Wage Worker Earns in Alaska
| Basis | Hourly | Weekly (40 hours) | Monthly (173.33 hours) | Annual (2,080 hours) |
|---|---|---|---|---|
| Full minimum wage | $14.00 | $560.00 | $2,426.62 | $29,120.00 |
These are gross figures before taxes and deductions, and they assume a full 40-hour week with no unpaid time off. A tipped employee's total pay must reach at least the full minimum wage row once tips are added. To convert a different hourly rate, use the salary to hourly calculator, and see our explainer on gross pay for what is included before deductions.
Employer Compliance Checklist
- Pay at least $14.00 per hour for every hour worked, including training, meetings, and time spent waiting or on call at the workplace
- If you take a tip credit, give written notice, track tips by pay period, and make up any shortfall to $14.00
- Display the required state and federal minimum wage posters where employees can see them
- Pay overtime at 1.5 times the regular rate after 40 hours in a workweek, and never average hours across weeks
- Keep accurate time records for at least three years; a time card calculator helps verify weekly totals before payroll runs
- Review exempt classifications against the salary and duties tests; a job title alone does not make an employee exempt
- Check the labor law compliance hub for related state rules on breaks, leave, and final pay
Frequently Asked Questions
What is the minimum wage in Alaska in 2026?
Alaska's minimum wage is $14.00 per hour as of July 1, 2026. From January 1 to June 30, 2026 it was $13.00.
When does Alaska's minimum wage go to $15?
On July 1, 2027, under Ballot Measure 1. After that, starting January 1, 2028, the rate is adjusted annually for inflation.
Does Alaska allow a tip credit?
No. Tipped employees in Alaska must be paid the full $14.00 minimum wage in cash. Tips are in addition to wages.
Does Alaska have daily overtime?
Yes. Employers with four or more employees owe time and a half for hours over 8 in a day or 40 in a week.
What is the minimum salary for exempt employees in Alaska?
Twice the minimum wage for a 40-hour week: $1,120 per week ($58,240 per year) from July 1, 2026, rising to $1,200 per week ($62,400 per year) on July 1, 2027.
Does Alaska require paid sick leave?
Yes. Since July 1, 2025, Ballot Measure 1 requires employers to provide paid sick leave accruing at one hour per 30 hours worked, capped at 40 hours a year for employers with fewer than 15 employees and 56 hours for larger employers.
Is there a youth minimum wage in Alaska?
Minors under 18 who work no more than 30 hours a week are exempt from the state minimum wage and overtime rules. Minors who work more than 30 hours in a week are covered.
How much does a full-time minimum wage worker earn in Alaska?
At $14.00 per hour, $560 a week and $29,120 a year before taxes, based on 2,080 hours.
Sources
- Alaska DOLWD, Ballot Measure 1 FAQ (PDF)
- Alaska DOLWD, Alaska Wage and Hour Act
- Alaska DOLWD, Minimum wage will increase July 1, 2026
- US Department of Labor, Minimum Wages for Tipped Employees
Reviewed September 2026
Rates and rules on this page were checked against the US Department of Labor's state minimum wage tables (effective July 1, 2026) and the Alaska sources listed above. Minimum wage laws change through legislation, ballot measures, indexing, and court decisions. Confirm the current rate with the state labor agency before setting pay, and see our labor law compliance guides for related rules.
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