Alaska MINIMUM WAGES

Alaska State Minimum Wage for 2025

According to the Alaska Wage and Hour Act, the minimum wage in Alaska for 2025 is $11.91 per hour effective from January 1, 2025. This reflects the annual inflation-based increase tied to Consumer Price Index (CPI) for urban consumers.

A second scheduled increase will further raise the minimum wage to $13.00 per hour from July 1, 2025, post the approval of Ballot Measure 1 in 2024.

Alaska don’t have a tipped minimum wage, hence all employees will receive the established minimum wage rate. The state law also mandates that employees working more than 40 hours per week are eligible to receive overtime pay at 1.5 times their regular rate.

Employers must promptly compile with these changes to avoid strict penalties. 

Minimum Wages in Alaska Cities

In Alaska the minimum wage rate of $11.73 per hour for both tipped and non-tipped employees applies across all the cities. Here are the minimum wage rates for the top 30 cities in Alaska: 

Threshold For Employees Exempt

The United States Department of Labor classifies employees into exempt and non-exempt based on their type of pay, salary, and type of work. Minimum wage rates affect exempt and non-exempt differently.  

• Non-exempt employees must receive the state or federal minimum wage (whichever’s higher), $11.73 for Alaska. They’re also eligible for overtime pay.  

• Exempt employees receive a fixed salary without overtime pay. They are usually not affected by minimum wage changes.  

According to Alaska Law (Alaska Statue 23.10.055 (b)), to qualify for exempt status employee must earn:

• A minimum salary exemption of $952,80 per week or $49,545.60 annually.

A new federal rule effective January 1, 2025, raises the minimum salary for exemption under the FLSA to $1,128 per week ($58,656 annually). This federal threshold surpassed Alaska’s current state exemption, however, it was later blocked by a Texas court ruling.

Historical Data of Alaska Minimum Wages 

Historically, Alaska has adhered closely to the federal minimum wage rates but often surpasses them to reflect the state’s higher cost of living. 

On taking a deeper dive, we notice that nonunion wages saw significant fluctuation in the early 1990s. In 1992, wages increased for 61.5% of nonunion occupations. However, 37.8% of nonunion roles experienced wage declines, some by as much as 52.7%.   

Union wages in Alaska were more stable but did see a reduction in 38.1% of the 21 tracked occupations, although they consistently remained higher than nonunion wages in nearly every occupation. 

Here is a table summarizing all the minimum wage rate changes witnessed between 1968 and 2023: 

* – Under the FLSA, the two rates shown in 1968, 1970, and 1976 reflect the former multiple-track minimum wage system in effect from 1961 to 1978.

Source: https://www.dol.gov/agencies/whd/state/minimum-wage/history

Exemptions in Minimum Wages of Alaska  

Apart from exempt employees not getting affected by the Alaskan minimum wage, some other categories are also exempt.  

Alaska minimum wage and overtime requirements do not apply to: 

• Individuals employed in agriculture, aquatic life collection, shrimp hand-picking, or domestic service in private homes. 
• Government employees (federal, state, local) and volunteers in nonprofit religious, charitable, or educational activities. 
• Bona fide executives, professionals, administrators, certain computer roles, and commission-based or outside salespeople. 
• Part-time youth under 18 working 30 hours or less per week. 
• Specific motor vehicle dealership roles (service, financing, or sales). 
• Volunteer emergency medical, fire department, and ski patrol services. 
• University of Alaska practicum students and licensed guides under specific conditions. 
• Independent taxicab drivers working on a contract basis and compensated by customers. 
• Watchmen or caretakers of premises inactive for over four months, and newspaper deliverers. 
• Individuals searching for placer or hard rock minerals or engaged in non-employment activities for certain nonprofits. 
• Employees at nonprofit childcare or educational facilities living on-site and compensated with a minimum annual rate based on marital status.