Alaska minimum wage rises to $14 on July 1, paid sick leave now required statewide

Alaska workers began earning $14.00 per hour on July 1, up from $13.00, as the second step of Ballot Measure 1 took effect. The same measure requires every employer in the state to provide paid sick leave, making both changes immediate and statewide.

Voters approved Ballot Measure 1 in November 2024. The Alaska Department of Labor and Workforce Development announced the phased schedule in a 2025 news release: "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." Another dollar increase is set for July 1, 2027, and annual inflation adjustments begin January 1, 2028. The new rate applies to all hours worked.

Alaska does not allow a tip credit. Restaurant workers, hotel staff, and seafood processors who receive tips must still be paid the full $14.00 per hour base wage on top of whatever tips they earn.

Sick Leave Requirements

The law requires all employers to let workers accrue one hour of paid leave for every 30 hours worked. Employers with 15 or more workers must allow up to 56 hours of accrual per year. Smaller employers, those with fewer than 15 workers, must allow up to 40 hours. Existing paid-time-off plans satisfy the requirement if they meet or exceed those thresholds.

The Foraker Group, a nonprofit support organization that published compliance guidance for Alaska employers, noted that organizations must adjust budgets, payroll systems, and staffing policies to absorb both the wage increases and the new accrual caps. The group said that burden falls particularly on small nonprofits and seasonal businesses.

Exempt Employee Threshold

The wage increase also moves the salary floor for exempt employees. Under Alaska law, salaried workers classified as executive, administrative, or professional must earn at least twice the minimum wage for a 40-hour week. That threshold rises to $1,120 per week as of July 1 and reaches $1,200 per week on July 1, 2027. Employers who do not adjust salaries to match may lose the exemption and owe overtime.

Workers who believe they are being underpaid, or who want to understand their rights, can call the Alaska Wage and Hour office at (907) 269-4900. Offices in Anchorage, Fairbanks, and Juneau are open weekdays from 8:30 a.m. to 4:30 p.m., with a midday closure from noon to 1 p.m. The department's full FAQ on Ballot Measure 1 is at labor.alaska.gov.