Alaska Minimum Wage for 2016, 2017
Alaska's state minimum wage rate is $9.80 per hour. This is greater than the Federal Minimum Wage of $7.25. You are entitled to be paid the higher state minimum wage. The minimum wage applies to most employees in Alaska, with limited exceptions including tipped employees, some student workers, and other exempt occupations.†
The Alaska minimum wage was last changed in 2008, when it was raised $2.65 from $7.15 to $9.80. Alaska's minimum wage rate is linked to a Consumer Price Index, which is intended to raise the rate along with inflation. The current minimum wage rate is re-evaluated yearly based on these values.
The Alaska Wage and Hour Act was passed on November 4, 2014, raising Alaska’s minimum wage to $8.75 on January 1, 2015 and $9.75 per hour on January 1, 2016. After 2016, Alaska’s minimum wage will rise either with inflation or $1 higher than federal minimum wage, whichever is higher, giving Alaska one of the highest minimum wages in the country. Alaska's minimum wage used to be set by law at $0.50 above the Federal Minimum Wage, and was $7.75 per hour from January 2010 until 2014.
Alaska has several special cases in which the applicable minimum wage is higher or lower.
- School bus drivers in Alaska must earn at least double the minimum wage
- Farm workers, fishermen, cab drivers, and government employees are exempt from the Alaska Minimum Wage
- Employees classified as an "executive, professional, or administrative" worker are exempt from both Alaska's minimum wage and overtime laws
Alaska Under-18 Minimum WagePart-time workers under 18 years old who work under 30 hours a week may be paid less then the Alaska Minimum Wage.
Alaska employers may not pay you under $9.80 per hour unless you or your occupation are specifically exempt from the minimum wage under state or federal law.
If you have questions about the Alaska minimum wage, please ask us and someone will respond to you as soon as possible. Looking for a new job? Use the free Alaska job search utility to find local job openings hiring now.
All Alaska employers must display an approved Alaska minimum wage poster in a prominent place to inform employees about the minimum wage and their worker's rights under Alaska labor law.
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Alaska Minimum Wage & Labor Law Posters
The Fair Labor Standards Act (FLSA) and Alaska labor law requires all employers in Alaska to visibly display an approved Alaska minimum wage poster, and other Alaska and federal labor law posters, to ensure that all employees are aware of federal and Alaska labor law and overtime regulations. Failure to display a Alaska labor law poster in the workplace can result in severe fines.
The Alaska minimum wage poster, and additional required Alaska labor law posters, are also available on the Alaska labor law posters download page.
Alaska Overtime Minimum Wage
All workers who put in over 40 weekly hours are entitled to a minimum wage of at least 1.5 times the regular applicable minimum wage (learn more about Alaska overtime pay). Some states require workers who work over a certain number of daily hours to be eligible for this overtime rate as well (Alaska law does specify a daily overtime limit).
The FLSA guarantees all AK employees adequate overtime compensation for all qualifying overtime hours worked. If your employer does not pay adequate overtime wages, you can file an unpaid overtime claim with the Alaska Department of Labor.
Alaska Minimum Wage Exemptions
In addition to any Alaska-specific minimum wage exemptions described above, the Federal Fair Labor Standards act defines special minimum wage rates applicable to certain types of workers. You may be paid under the Alaska minimum wage if you fit into one of the following categories:
- Alaska Under 20 Minimum Wage - $4.25 - Federal law allows any employer in Alaska to pay a new employee who is under 20 years of age a training wage of $4.25 per hour for the first 90 days of employment.
- Alaska Tipped Minimum Wage - See Here - Employees who earn a certain amount of tips every month may be paid a lower cash minimum wage, but must earn at least $9.80 including tips every hour. For more details, read about the Alaska tipped minimum wage.
Frequently Asked Questions - Alaska Minimum Wage & Labor Law
- What is the Alaska minimum wage?
The current Alaska minimum wage of $9.80 per hour is the lowest amount a non-exempt employee in Alaska can legally be paid for hourly work. Special minimum wage rates, such as the "Alaska waitress minimum wage" for tipped employees, may apply to certain workers.
- How much will I earn working a minimum wage jobin Alaska?
A full time minimum wage worker in Alaska working 40 hours a week, 52 weeks a year, will earn $78.40 per day, $392.00 per week, and $20,384.00 per year1. The national poverty line for a family unit consisting of two people is $16,020.00 per year.
- What is the Alaska under 18 minimum wage?
Alaska employers may pay 18 year olds and minors the youth minimum wage of $4.25 for the first 90 days of employment. Other labor law exemptions for minors in Alaska may exist.
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1 These earnings estimates do not account for the Alaska income tax , federal income tax, or local/municipal income taxes.
2 Poverty line for a family of two in the lower 48 published 2016 by the U.S. Department of Health & Human Services