Alaska Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)

Stay informed on Alaska labor laws in 2025 with essential information on minimum wages, overtime, and worker rights to ensure compliance.

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FAQs
What is the minimum wage in Alaska in 2025?

The minimum wage is currently set at $11.73 per hour. There is a proposed ballot measure that aims to raise the minimum wage incrementally over the following years:

  • 2025: $13 per hour
  • 2026: $14 per hour
  • 2027: $15 per hour

After 2027, the minimum wage will be adjusted annually for inflation based on the Consumer Price Index for urban consumers in the Anchorage area. This adjustment reflects ongoing efforts to ensure that Alaska’s minimum wage keeps pace with the cost of living and provides workers with a more sustainable income.

Is Alaska an at-will state?

Yes, Alaska is an at-will employment state. In the absence of a specific employment contract, both employers and employees can terminate the employment relationship at any time and for almost any reason without prior notice.

Termination Flexibility: Employers can dismiss employees for any lawful reason or even for no reason, provided it does not violate anti-discrimination laws or other legal protections.

Employee Rights: Employees also have the right to resign from their positions at any time and for any reason.

While Alaska generally follows the at-will employment doctrine, there are notable exceptions:

Discrimination Protections: Employers cannot terminate employees based on protected characteristics such as race, gender, age, disability, or marital status. Alaska’s anti-discrimination laws apply to all employers, regardless of size.

Retaliation: Employees are protected from being fired in retaliation for exercising their legal rights, such as filing a workers’ compensation claim or reporting illegal activities.

Breach of Contract: If an employee has a written or implied contract that specifies the terms of employment, the employer must adhere to those terms. Violating these terms can lead to claims of wrongful termination.

Public Policy Exceptions: Employees cannot be terminated for reasons that violate public policy, such as refusing to engage in illegal activities or filing a complaint about unsafe working conditions.

While Alaska operates under an at-will employment framework that allows for significant flexibility in terminating employment relationships, various legal protections exist to safeguard employees from wrongful termination.

Is overtime 8+ hours a day or 40+ hours a week in Alaska?
In Alaska, employees are entitled to overtime pay for hours worked beyond eight hours in a single day or 40 hours in a workweek. This means that if an employee works more than 8 hours in any given day, they should receive overtime compensation at a rate of 1.5 times their regular hourly wage for those additional hours. Similarly, if they exceed 40 hours in a week, any hours beyond that threshold also qualify for overtime pay.
How does overtime work in Alaska?

Overtime pay calculation in Alaska can vary depending on how an employee is compensated—hourly, by salary, or through commissions and bonuses.

For hourly employees, the overtime rate is straightforward: 1.5 times the regular hourly rate for hours worked beyond the standard threshold. 

Employers must pay nonexempt employees overtime for hours worked beyond the standard 40-hour workweek and beyond eight hours per workday, though daily and weekly overtime should not be paid for the same hours​​​.

For those with a salary or earning commissions, the calculation can get more complex; the regular rate is determined by dividing the total earnings by the total hours worked in the week, and then the overtime rate is applied to hours worked over the standard threshold.

Specific exemptions to Alaska’s overtime laws include professional, executive, and administrative employees, as defined under the Fair Labor Standards Act (FLSA) and Alaska’s own regulations. Certain categories of workers, like those in agriculture or seafood processing, are also exempt from these overtime provisions.

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