Overview of Alaska's Minimum Wage Requirements
As of the latest update in September 2023, the basic minimum wage in Alaska is $10.85 per hour. This is higher than the federal minimum wage of $7.25 per hour. In cases where the state minimum wage is greater than the federal minimum wage, the state minimum wage prevails. Employers in Alaska are required to pay premium pay after designated hours, specifically after 8 hours daily and 40 hours weekly. However, under a voluntary flexible work hour plan approved by the Alaska Department of Labor, a 10-hour day, 40-hour workweek may be instituted with premium pay after 10 hours a day.
The minimum wage in Alaska is adjusted annually based on a set formula. Most of these increases occur around January 1st. As of January 1st, 2023, the minimum wage for all workers, excluding those who receive tips, has increased from $10.34 to $10.85 per hour. However, it's important to note that this increase in the minimum wage might not reflect the inflationary trends.
Understanding Local Minimum Wage Variations
As of January 1, 2024, the minimum wage in Anchorage Municipality, Alaska is $11.73 per hour. This increase from $10.85 in 2023 is due to an adjustment for inflation, as mandated by Alaska Statute 23.10.065(a). The adjustment is based on the Consumer Price Index for urban consumers in the Anchorage metropolitan area (Anchorage CPI-U), which increased by 8.1% in 2022.
Similarly, the minimum wage in Fairbanks North Star Borough, Alaska, and Juneau City and Borough, Alaska, is also $11.73 per hour as of January 1st, 2024. For the most accurate and up-to-date information, visit the “Public Contracts Minimum Rates of Pay” page on the Alaska Department of Labor and Workforce Development website.
Minimum Wage Eligibility and Exemptions
In the state of Alaska, the minimum wage is applicable to all employees, with the current rate being $11.73 per hour, effective from January 1st, 2024. This applies regardless of how the work is measured, whether by-the-hour, piece-rate, commission, or otherwise. The minimum wage is calculated by multiplying all hours worked in the pay period by $11.73, and this amount is the least that can be paid to an employee as wages.
However, there are several exemptions to this rule. These include student learners (with departmental approval), individuals employed in agriculture, and aquatic life harvesting. Other exemptions include newspaper delivery individuals, watchmen or caretakers on non-operational premises, certain salesmen, those employed in mineral search, part-time employees under 18 years old, and more.
Minimum Wage Considerations and Compliance Tips
As a food business employer in Alaska, it's critical to stay informed about the state's minimum wage laws, especially those pertaining to tipped employees. Based on the most recent data from the U.S. Department of Labor, as of January 1st, 2024, the basic combined cash and tip minimum wage rate in Alaska is $11.73. This means that employers are required to pay tipped employees the full state minimum wage before tips.
Alaska is one of the seven states in the U.S. that does not have a subminimum wage for tipped workers. This means that employers in the food business in Alaska are required to pay their tipped workers the full minimum wage, regardless of the tips they receive. Tips function as additional income over and above their wages.
FAQs
- What is the current minimum wage in Alaska? As of January 1st, 2024, the basic minimum wage in Alaska is $11.73 per hour.
- Are there any exemptions to the minimum wage in Alaska? Yes, there are several exemptions including student learners, individuals employed in agriculture, aquatic life harvesting, domestic service in private homes, by the U.S., State, or local government, and in nonprofit organizations on a voluntary basis, among others.
- What is the minimum wage for tipped employees in Alaska? As of January 1st, 2024, employers are required to pay tipped employees the full state minimum wage of $11.73 per hour before tips.
Information Source Links
- Alaska Department of Labor and Workforce Development
- U.S. Department of Labor's website
- National Employment Law Project
- Alaska Statute 23.10.050 - 23.10.150
- Wage and Hour Administration, Alaska Department of Labor and Workforce Development
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