Alaska Minimum Wage & Paid Sick Leave Alert (Effective July 1, 2025)

Alaska employers face two major compliance deadlines on July 1, 2025: the state minimum wage jumps to $13.00 an hour and Ballot Measure 1 introduces mandatory paid sick leave statewide. If you handle payroll, HR, or compliance and you’re searching for the latest Alaska minimum-wage update or Alaska paid-sick-leave requirements, this streamlined guide spells out the key numbers, effective dates, exemptions, and next steps, all with links to the Alaska Department of Labor for deeper detail.

1. What’s changing on July 1?

ChangeOldNew (7/1/25)Who’s Affected
State minimum wage$11.91 /hr$13.00 /hrAll non-exempt employees
Exempt-salary threshold$952.80 / week$1,040.00 / weekEAP* salaried exempt staff
Paid sick leave (PSL)1 hr PSL per 30 hrs workedNearly every worker (see carve-outs)

*EAP = executive, administrative, professional under AS 23.10.055(b). (labor.alaska.gov, labor.alaska.gov)


2. Paid-Sick-Leave basics

  • Accrual rate: 1 hour for every 30 hours worked (count all hours, straight-time or OT)
  • Annual use cap:
    • ≤14 employees: up to 40 hours / year
    • 15+ employees: up to 56 hours / year (ballotpedia.org)
  • Carry-over: Unused hours roll over, but total balance can’t exceed the annual cap.
  • Notice to employees: Give a written PSL notice at hire or between June 1 – July 31, 2025 for current staff. Alaska hasn’t published a template; employers must draft their own. (labor.alaska.gov)

3. Who’s not covered by the new PSL rule?

The law keeps the minimum list of exemptions (e.g. certain minors, apprentices with approved wage waivers, seasonal nonprofit-camp staff, prisoners, specific agricultural/domestic workers, and union employees whose CBA explicitly waives PSL). Review the full list before assuming an exemption. (elections.alaska.gov)


4. Quick action checklist for employers

By WhenTaskHow
NowConfirm pay rate updates in your payroll system so 7/1 checks reflect $13.00/hr and the new exempt salary floor.Work with your payroll partner like Checkwriters.
6/1 – 7/31/25Issue written PSL notice to all existing employees; add it to new-hire packets.Keep signed acknowledgement or electronic receipt.
July payroll closeTurn on PSL accrual in your time-and-attendance settings (1 per 30).Ensure caps (40/56) are configured by head-count tier.
OngoingTrack Alaska DOL final regulations & public-comment updates.Subscribe to Alaska DOL email list or bookmark their FAQ page (below).

5. The Fine Print

The Alaska Department of Labor & Workforce Development has:

  • Minimum-wage bulletin and salary-threshold guidance
  • Ballot Measure 1 FAQ & draft regulations (public comment open)

For the authoritative text and updates, see the DOL Wage & Hour hub and the Ballot Measure 1 FAQ. (labor.alaska.gov, labor.alaska.gov)


Disclaimer: The information contained herein is not intended to be construed as legal advice, nor should it be relied on as such. Employers should closely monitor the rules and regulations specific to their jurisdiction(s) and should seek advice from counsel relative to their rights and responsibilities.

By Dakota Hebert
Chief Marketing Officer, Checkwriters
Dakota joined Checkwriters in 2013, where he worked in the Sales and Marketing departments and currently serves as Chief Marketing Officer. He is responsible for the company’s national brand and marketing, corporate communications, and hosts the Checkwriters Podcast. Previously, he worked in communications in the U.S. Senate in Washington, D.C. He lives with his wife and five children in Massachusetts.

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