- Alaska's rules in one table
- Why Alaska moves in July
- Daily overtime and the small-employer exception
- Paid sick leave since July 2025
- Who's left out of the Act
- No tip credit in Alaska
- Alaska's rate history
- Alaska against the West Coast
- Paydays and getting help
- Teen jobs and federal hours limits
- Questions to settle before Alaska payroll
- My verdict
- Frequently asked questions
The minimum wage in Alaska is $14.00 an hour as of October 2026, after rising from $13.00 on July 1, 2026. Alaska allows no tip credit, so tipped staff get the full $14.00 in cash, and overtime starts after 8 hours in a day as well as after 40 in a week.
The Alaska Department of Labor and Workforce Development's Wage and Hour section enforces the rate under Alaska Statute 23.10.050 to 23.10.150. This page draws on the department's Wage and Hour page and its Summary of the Alaska Wage and Hour Act, plus the U.S. Department of Labor's state, tipped, history and payday tables, all read in October 2026.
Alaska's rules in one table
| Rule | Alaska (as of October 2026) |
|---|---|
| Minimum wage | $14.00 an hour |
| Previous rate (from July 1, 2025) | $13.00 an hour |
| Tipped staff | $14.00 in cash, tips on top |
| Daily overtime | After 8 hours |
| Weekly overtime | After 40 hours |
| Paid sick leave | 1 hour for every 30 hours worked |
Why Alaska moves in July
Alaska's increases now land on July 1, not January 1. The department's summary sets $13.00 from July 1, 2025 and $14.00 from July 1, 2026. Payroll teams that update rates only at New Year will be half a year late, so the July date belongs in the calendar.
Daily overtime and the small-employer exception
Here's the rule that catches employers from other states. The Act sets a standard of 8 hours a day and 40 hours a week, and time and a half is due for hours beyond either. A 10-hour shift earns 2 hours of overtime even in a short week.
There are exceptions. The summary says overtime isn't required for an employer who employs three or fewer people in the regular course of business. A voluntary flexible work plan, signed by employer and employee and approved by the department, can set a 10-hour day and 40-hour week, with overtime after 10 hours a day. My overtime laws guide compares daily overtime rules elsewhere.
Paid sick leave since July 2025
Starting July 1, 2025, sick leave is required by state law. The department's summary lists the rules:
- Employees earn 1 hour of sick leave for every 30 hours worked.
- They can accrue and use 40 or 56 hours a year, depending on whether the employer has 15 or more employees.
- No doctor's note or other proof is required for a sick day.
- Unused hours carry forward into the next year.
- No adverse action can be taken against someone for using sick leave.
- Employers don't have to cash out unused sick leave when employment ends.
Unlike minimum wage and overtime, the sick leave rule also applies to bona fide executive, administrative and professional employees.
Who's left out of the Act
The summary lists groups the minimum wage, overtime and sick leave rules don't cover. They include people in domestic service in a private home, government employees, volunteers for a nonprofit, bona fide executive, administrative and professional staff, outside sales staff, and youths under 18 employed part-time for not more than 30 hours a week. School bus drivers sit at the other end: they must get at least twice the Alaska minimum wage.
No tip credit in Alaska
Alaska appears in the federal tipped table's group of states requiring the full minimum wage before tips. There's no $2.13 cash wage here. Servers, bartenders and guides who earn tips must be paid $14.00 an hour by the employer, and the tips are theirs on top.
Alaska's rate history
| Year | Alaska rate |
|---|---|
| 2020 | $10.19 |
| 2021 | $10.34 |
| 2023 | $10.85 |
| 2024 | $11.73 |
| From July 1, 2025 | $13.00 |
| From July 1, 2026 | $14.00 |
Hawaii is the other state away from the mainland, with a schedule that climbs for years and a tip credit tied to a test, as our Hawaii minimum wage guide explains.
Alaska against the West Coast
| State | Basic minimum wage (as of October 2026) |
|---|---|
| Alaska | $14.00 |
| Washington | $17.13 |
| Oregon | $15.55 standard |
| California | $16.90 |
Alaska still pays less than the three West Coast states, but the gap has narrowed fast. My Washington minimum wage guide covers the state many Alaska seasonal workers come from.
Paydays and getting help
The federal payday table lists Alaska under semi-monthly and monthly paydays. The Wage and Hour section runs online webinars on wage and hour and child labor laws every third Tuesday of the month, and its offices in Anchorage, Fairbanks and Juneau take calls from employers and workers.
Teen jobs and federal hours limits
Alaska's Act leaves out youths under 18 working part-time for not more than 30 hours a week, but federal child labour rules still apply. The Department of Labor's reference guide says 14 is the minimum age for most non-farm work, and 14 and 15 year olds can work no more than 3 hours on a school day or 18 hours in a school week. Summer jobs in tourism are where these limits come up most.
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Questions to settle before Alaska payroll
- Did every hourly rate move to $14.00 on July 1, 2026?
- Do you employ more than three people, which brings in daily overtime?
- Is a flexible 10-hour plan in writing and approved by the department?
- Are sick leave hours tracked at 1 hour per 30 hours worked?
- Do any school bus drivers earn at least twice the minimum?
Montana also allows no tip credit, and the Montana minimum wage guide explains how its rate is set each year and what small businesses can do.
My verdict
Alaska's $14.00 is the headline, but the rules that cost employers are daily overtime and the new sick leave accrual. Pay tipped staff the full rate, budget for overtime on any shift over 8 hours unless you have three or fewer staff or an approved flexible plan, and track sick hours from the first day of work.
Frequently asked questions
What is the minimum wage in Alaska?
It's $14.00 an hour as of October 2026, effective July 1, 2026.
Does Alaska allow a tip credit?
No. Tipped staff must be paid the full $14.00 minimum before tips.
Does Alaska have daily overtime?
Yes. Overtime is due after 8 hours in a day or 40 hours in a week, with limited exceptions.
Which Alaska employers don't have to pay overtime?
An employer with three or fewer employees in the regular course of business, among other listed exceptions.
How does Alaska sick leave accrue?
Employees earn 1 hour of sick leave for every 30 hours worked, from July 1, 2025.
Do Alaska employees need a doctor's note for sick leave?
No. The department's summary says no doctor's note or verification is required.
When does Alaska's minimum wage change?
Recent increases took effect on July 1, in 2025 and 2026.
Who enforces Alaska's minimum wage?
The Wage and Hour section of the Alaska Department of Labor and Workforce Development.
How much must Alaska school bus drivers be paid?
At least two times the Alaska minimum wage, according to the department's summary.
