The state-wide minimum wage for Alaska is $10.85 per hour as of January 01, 2023.
Alaska minimum wage in 2021: US$10.34 (effective January 1, 2021)
Alaska minimum wage in 2020: US$10.19
Alaska minimum wage in 2000: US$5.65 ($8.70 after inflation adjustment)
Alaska minimum wage in 1980: US$3.60 ($12.06 after inflation adjustment)
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.
Also, certain exempt employees must be paid on a salary basis of not less than twice the current Alaska minimum wage based on a 40-hour work week in order to maintain their exempt status.
An employer is required to submit an application with Alaska’s Department of Labor and Workforce Development to receive permission to pay student learners less that the standard minimum wage.
The least an employer can pay an employee is equal to all actual hours worked in a pay period multiplied by the Alaska minimum wage, unless an employer can demonstrate a specific exemption.
Alaska minimum wage laws allow employers to pay less than minimum wage to individuals impaired by physical or mental deficiency, age, or injury that otherwise limits their ability to perform work.
In addition employees that are exempt must be paid on a salary basis of not less than twice the current Alaska minimum wage, based on a 40 hour work week to keep their exemption status.
To be able to pay an individual with a disability less than minimum wage, an employer must file an application with Alaska’s Department of Labor and Workforce Development and receive approval.
The reason behind the small increases to Alaska’s minimum wage each year is because they adjust their minimum wage (Alaska law) based on inflation using the Consumer Price Index (CPI).
If the minimum wage determined under Section 3 is less than one dollar over the federal minimum wage, the Alaska minimum wage shall be set at one dollar over the federal minimum wage.
Alaska minimum wage laws permit employers to require employees to participate in tip or gratuity pools, subject to the rules and regulations established under the Fair Labor Standards Act.
Salary.com's CompAnalyst platform offers: