Alaska Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2026)

Alaska labor laws 2026: minimum wage, overtime, paid sick leave, child labor, and more. Essential compliance guide for Alaska employers and contractors.

FAQs
What is the minimum wage in Alaska in 2026?

$14.00 per hour, effective July 1, 2026. For construction crews, every hour—regular, overtime, or across multiple sites—must be paid at least $14.00/hr.

Wage schedule (AS 23.10.065): $13.00 now; $14.00 July 1, 2026; $15.00 July 1, 2027; CPI-U from 2028. The Alaska minimum wage 2026 increase from $13.00 to $14.00 is the largest single-year rise in over a decade.

Salaried exempt employees must earn at least 2× minimum wage. That’s $1,120/week from July 1, 2026.

Does Alaska require employers to provide paid sick leave?

Yes, as of July 1, 2025, every Alaska contractor must provide paid sick leave at 1 hr per 30 hrs worked. This includes seasonal workers, part-time crew, and workers split across jobs.

Employers with 15+ employees cap at 56 hours per year. Fewer than 15 employees cap at 40 hours. No doctor’s note required.

Retaliation is prohibited under AS 23.10.068. If your payroll system isn’t tracking accruals by worker, fix that now.

How does Alaska overtime law work — is it different from federal law?

Yes, and it matters for construction. Alaska overtime law triggers at 8+ hours in a day OR 40+ hours in a week. Federal law (FLSA) only triggers at 40+ weekly hours. Alaska’s daily threshold is stricter.

A 10-hour day on a jobsite owes 2 hours of daily OT, even with a low weekly total. Hours cannot be double-counted across both thresholds.

Misclassifying long days as straight time is a common Alaska construction wage violation.

Does Alaska have a tip credit for tipped employees?

No. Alaska has no tip credit. Every tipped worker receives the full minimum wage regardless of tips. That’s $13.00/hr through June 30, 2026, then $14.00/hr from July 1, 2026. Tips are on top, never a substitute.

Is Alaska an at-will employment state?

Yes. Alaska follows the at-will doctrine. You can end employment at any time, mid-project, end of season, or for any non-discriminatory reason. No advance notice required.

You cannot terminate to violate anti-discrimination law or to retaliate for protected activity. Check union CBAs for specific termination procedures.

Is Alaska a right-to-work state?

No. Alaska is not a right-to-work state. On union construction jobs, workers may be required to pay dues even without joining the union. Non-union contractors bidding against union shops must factor this into labor cost comparisons. Review applicable CBAs before assuming workers can opt out.

What are the Alaska child labor laws for minors?

On a construction jobsite, minors under 18 generally cannot work. Operating equipment, working at heights, and handling hazardous materials are all hazardous occupations under AS 23.10.325 and 8 AAC 05.280.

For non-construction roles: under 14 may only work in newspaper delivery, babysitting, domestic work, and entertainment with a DOLWD permit.

Ages 14–15 need a work permit for all jobs. They may work up to 9 hrs/day (school + work) and 23 hrs/week during school. During vacations: up to 8 hrs/day and 40 hrs/week, between 5:00 a.m. and 9:00 p.m. only.

Ages 16 need a work permit for all jobs. Ages 16–17 cannot work in hazardous occupations or more than 6 days per week.

Age 17 needs a permit only at alcohol-licensed employers.

What are the final paycheck rules when an employee is terminated in Alaska?

Alaska is strict on final pay timing. Terminated or laid off: all wages due within 3 working days (AS 23.05.140). Weekends, holidays, and termination day do not count.

Resigned: due by the next regular payday. Must be at least 3 working days after notice (AS 23.05.140). Final pay includes all hours worked, prevailing wage premiums, and promised bonuses. Severance is not required unless contractually agreed.

What penalties can Alaska employers face for labor law violations?

Construction employers face exposure across AKOSH, wage claims, and sick leave. As of February 1, 2025, serious AKOSH violations carry a penalty of up to $16,550. Willful or repeat violations carry a penalty of up to $165,514.

Wage underpayments bring back-pay, liquidated damages, and attorney’s fees under AS 23.10.110. Sick leave retaliation adds penalties under AS 23.10.068. Public works non-compliance can result in debarment.

What is Alaska’s prevailing wage law and who does it apply to?

Prevailing wage rules apply to any state-funded public construction contract over $25,000 (AS 36.05). This covers roads, schools, government buildings, and utilities. DOLWD sets rates by trade and region using local wage data.

General contractors are responsible for subcontractor compliance. Non-compliance brings back wages, penalties, and debarment. Current rates are in Pamphlet 600 (DOLWD). Use the issue matching your project’s final bid date.

Try Workyard's compliance software, with precise overtime and break compliance, customizable rules, auditable records, and more!
See how it works
Trusted by over 50,000 contractors across the U.S.