Alaska Labor Law Guide 2026: Minimum Wage, Overtime, Breaks, and Leave
Alaska labor laws for employers in 2026: the $14.00 minimum wage rising to $15.00 in July 2027, daily overtime after 8 hours, mandatory paid sick leave under Ballot Measure 1, a $1,120 weekly exempt salary threshold, 3-day final pay after termination, and work permits for minors under 17.
Alaska is one of the most employee-protective states outside the West Coast. The Alaska Wage and Hour Act requires overtime after 8 hours in a day, Ballot Measure 1 (2024) added a rising minimum wage and mandatory paid sick leave, the exempt salary threshold is tied to the minimum wage, and a terminated employee must be paid within three working days. The Labor Standards and Safety Division of the Alaska Department of Labor and Workforce Development enforces all of it.
This guide covers the rules an Anchorage, Fairbanks, or Juneau employer must follow in 2026 and what changes on July 1, 2027.
Minimum Wage in Alaska
Alaska's minimum wage is $14.00 per hour as of July 1, 2026. The Department's Ballot Measure 1 FAQ sets out the schedule: "$13.00 per hour" on July 1, 2025, "$14.00 per hour" on July 1, 2026, and "$15.00 per hour" on July 1, 2027, after which the rate is adjusted for inflation and can never fall below $2.00 above the federal minimum. Alaska does not allow a tip credit, so tipped workers earn the full minimum wage in cash. There are no local minimum wages.
The Alaska minimum wage guide covers the schedule, coverage, and earnings at the minimum. See minimum wage by state for the national table.
Overtime Rules
The Alaska Wage and Hour Act is stricter than the FLSA. The Department's wage and hour FAQ states that overtime is owed for "more than 8 hours in a single day and/or more than 40 hours in a single week" at "time-and-one-half (1.5 times) your hourly or regular wage." The daily rule applies to employers with four or more employees; smaller employers follow the federal 40-hour rule. Executive, administrative, and professional employees are exempt if they meet the state salary and duties tests. Some flexible work plans approved by the Department allow 10-hour days without daily overtime.
Worked examples at the minimum wage. A $14.00 employee who works five 9-hour days earns 40 hours of regular pay ($560.00) plus 5 hours of daily overtime at $21.00 ($105.00), for $665.00 gross, even though the week totals 45 hours. Four 10-hour days produce 32 regular hours and 8 overtime hours. Use the overtime calculator and compare the daily-overtime states in overtime pay laws by state.
Exempt salary threshold. Ballot Measure 1 ties the exempt salary level to the minimum wage: "2 times the applicable minimum wage multiplied by 40 hours." That is "$1,120 per week" from July 1, 2026 and "$1,200 per week" from July 1, 2027, far above the federal $684.
Meal and Rest Breaks
Alaska does not require breaks for adults. The FAQ confirms there is no legal requirement for employees 18 and over, while breaks under 20 minutes, if given, must be paid. Minors are different: a minor under 18 who works five consecutive hours is entitled to a 30-minute break before continuing, and one scheduled for six consecutive hours is entitled to a 30-minute break.
| Break type | Alaska requirement | Notes |
|---|---|---|
| Meal break, adults | Not required | Federal rule: unpaid only if 30 minutes or more and duty-free |
| Rest break, adults | Not required | Breaks under 20 minutes are paid |
| Minors under 18 | 30 minutes after 5 consecutive hours | Enforced by the Department |
See rest and meal break laws by state and the break time calculator.
Paid Sick Leave and Other Leave
Since July 1, 2025, Alaska employers must provide paid sick leave under Ballot Measure 1. Employees accrue "1 hour per 30 hours worked." The annual accrual and use cap is "56 hours per year" for employers with 15 or more employees and "40 hours per year" for employers with fewer than 15, and unused leave carries over. The FAQ also notes that minors who work 30 or more hours in a week accrue sick leave for all hours that week.
| Leave type | Alaska requirement | Notes |
|---|---|---|
| Paid sick leave | 1 hour per 30 hours worked; 40 or 56 hour cap by employer size | Effective July 1, 2025; carryover required |
| Family and medical leave | Federal FMLA; state Family Leave Act for public employers | 50 or more employees for FMLA |
| Jury duty | Job protected | No private pay requirement |
| Voting | Paid time off to vote unless the employee has two consecutive non-work hours while polls are open | Confirm current wording |
| Military leave | Federal USERRA plus state protections | Reinstatement rights |
Compare states in paid sick leave laws in the US and jury duty laws in the US. Ballot Measure 1 also bans mandatory "captive audience" meetings about union or political matters.
PTO Payout and Final Paychecks
Alaska's final pay deadlines are short. A terminated employee must be paid "within three working days after the day of termination." An employee who quits must be paid "by the next regular payday that is at least three working days after your last day worked." Employers must pay at least semimonthly or monthly on regular paydays.
Vacation and severance are not required by law; the FAQ says entitlement "depends on employer policy or contract." A written policy that promises payout of accrued vacation is enforceable as wages. See PTO payout laws by state. Note that accrued paid sick leave under Ballot Measure 1 does not have to be paid out at separation.
Exempt vs Non-Exempt Employees
Alaska applies the executive, administrative, and professional exemptions, but with its own salary floor of twice the minimum wage times 40 hours: $1,120 per week in 2026 and $1,200 from July 1, 2027. A salaried employee below that level is non-exempt under state law and earns daily and weekly overtime even if they would be exempt federally. Duties must still match the exempt categories.
Test roles with the FLSA exemption flowchart, then apply the Alaska salary level. Background on the tests is in exempt vs non-exempt employees.
Child Labor Rules
Alaska's child labor rules are summarized on the Department's child labor page. Minors aged 14 to 16 "must have a work permit on file with the Department," and 17 year olds need one when the employer holds a restaurant designation and serves alcohol.
| Age group | Alaska rules |
|---|---|
| Under 14 | Only newspaper delivery, babysitting, handiwork and domestic work in private homes, and entertainment with a permit |
| 14 and 15, school in session | School plus work limited to 9 hours a day, work between 5 AM and 9 PM, 23 hours a week |
| 14 and 15, vacations | 40 hours a week between 5 AM and 9 PM |
| 16 and 17 | No minor under 18 may work more than 6 days in a workweek; hazardous occupations prohibited |
| Breaks | 30 minutes after 5 consecutive hours for any minor under 18 |
| Work permits | Required for 14 to 16 year olds; 17 year olds in licensed restaurants |
Federal rules are in child labor laws in the US.
Other Alaska Employment Rules
- Pay stubs. Every pay period the employer must give a statement showing hours worked, rates, gross wages, deductions, and pay period dates.
- Deductions. Deductions need written authorization unless required by law, and can never cut into the minimum wage or overtime.
- Flexible work plans. Employers can apply to the Department for approved plans that allow longer days without daily overtime.
- Captive audience meetings. Employers may not require attendance at meetings on union organizing or political matters.
- Human rights. The Alaska Human Rights Law covers employers with one or more employees and is enforced by the Alaska State Commission for Human Rights.
Hiring, Termination, and Record-Keeping
Alaska is an at-will state. The Alaska Human Rights Law prohibits discrimination based on race, religion, color, national origin, age, sex, physical or mental disability, marital status, parenthood, and pregnancy, and applies to every employer. Federal Title VII applies at 15 or more employees. Complete Form I-9 for every hire and follow the Fair Credit Reporting Act for background checks.
Required postings include the Alaska minimum wage and paid sick leave posters, the Human Rights Commission notice, workers' compensation and employment security notices, and the federal FLSA, OSHA, EEOC, FMLA, and USERRA posters. The Department's Know Your Rights page links the current posters.
Keep daily hours records, because daily overtime cannot be reconstructed from weekly totals. The FLSA requires payroll records for three years and time records for two; Alaska wage claims can reach back two years, or three for willful violations. A time card calculator with the California-style daily rule handles Alaska's 8-hour threshold; the timekeeping policy template sets the written rules.
Common Compliance Mistakes in Alaska
- Calculating overtime weekly only. A 10-hour day produces two overtime hours even in a 40-hour week. Payroll systems set to the federal rule underpay every long shift.
- Using the federal exempt threshold. A salaried manager at $900 a week is exempt federally and non-exempt in Alaska, where the floor is $1,120 in 2026 and $1,200 from July 2027.
- Capping sick leave at 40 hours with 15 or more employees. The cap is 56 hours for employers at that size, and unused hours carry over.
- Missing the three-day final pay window. A termination on Monday requires payment by Thursday. Waiting for the regular payday is a violation.
- Taking a tip credit. Alaska does not allow one. Tipped employees earn the full minimum wage in cash.
- Hiring a 15 year old without a permit on file. Work permits for 14 to 16 year olds must be filed with the Department before work begins.
Frequently Asked Questions
What is the minimum wage in Alaska in 2026?
$14.00 per hour from July 1, 2026. It rises to $15.00 on July 1, 2027 and is indexed to inflation from 2028. There is no tip credit.
Does Alaska require overtime after 8 hours a day?
Yes. Employers with four or more employees owe 1.5 times the regular rate for hours over 8 in a day and over 40 in a week. Smaller employers follow the federal 40-hour rule.
Does Alaska require paid sick leave?
Yes, since July 1, 2025. Employees accrue 1 hour per 30 hours worked, capped at 56 hours a year for employers with 15 or more employees and 40 hours for smaller employers.
When is a final paycheck due in Alaska?
Within three working days after termination. An employee who quits is paid by the next regular payday that is at least three working days after the last day worked.
What is the exempt salary threshold in Alaska?
$1,120 per week from July 1, 2026 and $1,200 per week from July 1, 2027, calculated as twice the minimum wage times 40 hours.
Does Alaska require lunch breaks?
Not for adults. Minors under 18 must get a 30-minute break after five consecutive hours.
Do minors need a work permit in Alaska?
Yes for ages 14 to 16, and for 17 year olds working in restaurants licensed to sell alcohol.
Do Alaska employers have to pay out unused vacation?
Only if a policy or contract promises it. Accrued sick leave under Ballot Measure 1 is not paid out at separation.
Sources
- Alaska Department of Labor and Workforce Development, Wage and Hour FAQ
- Alaska Department of Labor and Workforce Development, Ballot Measure 1 FAQ (PDF)
- Alaska Department of Labor and Workforce Development, Child Labor
- Alaska Department of Labor and Workforce Development, Minimum Wage Standard and Overtime Hours
- US Department of Labor, state minimum wage laws
Reviewed September 2026
This guide summarizes Alaska and federal rules as published by the agencies above. The minimum wage, exempt salary threshold, and sick leave rules under Ballot Measure 1 change on set dates, and the Department issues new guidance regularly. Confirm current requirements with the Labor Standards and Safety Division before making payroll or policy decisions.
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