Alaska Labor Laws
An employer guide for 2026

Alaska labor laws at a glance

Alaska is one of the few states that requires daily overtime, bans tip credits outright, and now mandates paid sick leave for nearly every private employer. The table below sums up the core rules; each section after it explains how they work in practice.

EZTime labor rule alerts flag overtime and missed rest periods before payroll.

Alaska minimum wage

Alaska's minimum wage rose from $13.00 to $14.00 per hour on July 1, 2026, according to the Alaska Department of Labor and Workforce Development (DOLWD) Wage and Hour page. The schedule set by voters in 2024 calls for one more step: $15.00 per hour on July 1, 2027. After that, the rate is adjusted every year for inflation, with the new figure calculated each September 30 and rounded up to the nearest ten cents. If the state rate ever falls to less than $2 above the federal minimum, the law resets it to $2 above the federal rate.

Unlike most states, Alaska changes its minimum wage in midsummer, not on January 1. That means there is no new statewide rate on January 1, 2027; the $14.00 rate stays in place until the July 2027 increase. Budget for that mid-year change when you plan seasonal hiring and summer schedules.

Tipped workers and special rates

Alaska does not allow a tip credit. Tips and gratuities cannot be counted toward the minimum wage, and the federal tip credit does not apply, so servers, bartenders and other tipped staff must receive at least $14.00 per hour in cash wages before tips. Public school bus drivers must be paid at least twice the state minimum wage. Certain part-time workers under 18 who work no more than 30 hours a week fall under an exemption in the Wage and Hour Act, so confirm coverage with DOLWD before applying it.

Overtime in Alaska

Alaska requires overtime at one and one-half times the regular rate for hours over 8 in a day or over 40 in a workweek. You pay whichever produces more overtime, but you do not pay twice for the same hour: hours already paid as daily overtime are not counted again toward the weekly total. Use the overtime calculator to check a mixed week.

• Small employer exception: the overtime section does not apply to an employer with fewer than four employees in the regular course of business.
• Flexible work hour plans: under a written plan signed by the employee and approved by and filed with DOLWD, or under a collective bargaining agreement, a 10-hour day can be worked before daily overtime starts (premium pay after 10 hours in a day, still 40 per week). See the voluntary flexible work hour plan page.
• Exempt employees: bona fide executive, administrative and professional employees must meet the federal duties tests and be paid a salary of at least twice the state minimum wage for the first 40 hours each week. At $14.00 per hour, that works out to $1,120 per week.
• Other exemptions: agricultural workers and several other groups are excluded from overtime; check the statute list in Pamphlet 100.

For the federal side of the rules, see our FLSA overtime guide.

Meal and rest breaks

Alaska has no general meal or rest break requirement for adult employees in the private sector. The U.S. Department of Labor meal period table lists no adult rule for Alaska, and the rest period table shows no paid rest break mandate. Any breaks you offer are a matter of company policy. Under federal rules, short breaks you do give are generally counted as paid work time.

Minors are different. Under Alaska's child labor rules, a worker under 18 who works five consecutive hours is entitled to a 30-minute break before continuing, and a minor scheduled for six consecutive hours is entitled to a 30-minute break during the workday. Build these into teen schedules from the start.

Paid sick leave and other leave

Since July 1, 2025, Alaska requires paid sick leave (AS 23.10.066–.069). According to DOLWD's Sick Leave FAQ, employees earn at least one hour for every 30 hours worked. Only hours actually worked count toward accrual. Salaried exempt employees accrue as if they work 40 hours a week, or their normal workweek if shorter.

• Fewer than 15 full-time equivalents: employees can accrue and use up to 40 hours a year.
• 15 or more full-time equivalents: up to 56 hours a year. Size is based on the prior calendar year's total hours divided by full-time hours.
• Carryover: unused leave rolls over to the next year unless you front-load the full annual amount.
• Uses: the employee's own illness or injury, caring for a family member, and needs related to domestic violence, sexual assault or stalking.
• Documentation: you may ask for proof only if leave exceeds three consecutive workdays, and a simple provider note is enough.
• Separation: payout is not required. If an employee is rehired within six months, the unused balance must be reinstated.

Some groups are exempt, including minors working under 30 hours a week, seasonal staff of nonprofit residential summer camps, and employees covered by a union contract that clearly waives the leave. An existing PTO plan can satisfy the law if it meets the accrual and use standards and you tell employees it doubles as sick leave. At hire, you must give each employee written notice of the leave entitlement, how it works, and that retaliation is prohibited. The PTO accrual calculator can help you set up the 1-for-30 rate.

The Alaska Family Leave Act that DOLWD enforces applies to public employers. Private employers should also check federal FMLA coverage if they have 50 or more employees.

Paydays and final paychecks

Alaska law (AS 23.05.140) requires pay to be issued monthly or semi-monthly. Monthly pay is allowed only when it is agreed in an annual initial employment contract; otherwise, the employee chooses. At hiring, you must tell employees in writing the payday, the place of payment and the rate of pay, and give written notice of later changes.

• When you end employment, for any reason: final wages are due within three working days.
• When the employee resigns: final wages are due on the next regular payday that is at least three days after you receive notice.
• Late pay: an employer that misses the deadline can owe the employee's regular pay from the time of demand until payment, up to 90 working days.

Child labor hours

Alaska's child labor page sets tighter limits than many states for younger teens:

Minors under 16 may not work at establishments licensed to sell alcohol. Federal child labor rules also apply, and when state and federal rules differ, follow the stricter one.

Recordkeeping and posters

Employers must keep payroll records for at least three years at the worksite. Records must include each employee's name, address and occupation, rate of pay, amount paid each pay period, and daily and weekly hours worked. DOLWD lists required and recommended notices on its workplace posters page, including the Summary of Alaska Wage and Hour Act poster, the Summary of Alaska Child Labor Law, and the unemployment insurance notice to employees. Accurate daily time records matter even more in a daily-overtime state, so a time card calculator or digital clock is worth the effort.

How EZTime helps Alaska employers

EZTime gives Alaska businesses one place to capture hours and keep them compliant. Employees can clock in from a GPS mobile time clock with geofencing, tap NFC tags at a job site, or use a tablet kiosk or biometric clock at the front door. Managers build shifts with templates and approve swaps in the scheduling software, get alerts before someone crosses an overtime threshold or misses a break, and track PTO and sick-leave balances automatically. At the end of the period, export payroll-ready Excel or PDF reports that work with any payroll software. Plans start from $2 per employee per month, with a 14-day trial — see pricing.

This guide is general information, not legal advice. Laws change; check the Alaska Department of Labor and Workforce Development, Wage and Hour Administration or an employment attorney. Last reviewed November 2026.