Alaska’s minimum wage is $14.00 an hour, effective July 1, 2026 [1][2]. The law already sets the next step: $15.00 on July 1, 2027 [1]. Tips can’t be counted toward it [1], and overtime starts after 8 hours in a day as well as 40 in a week [3].
At a glance
| Effective | Hourly minimum |
|---|---|
| July 1, 2025 | $13.00 |
| July 1, 2026 | $14.00 |
| July 1, 2027 | $15.00 |
| After that | Adjusted each year for Anchorage inflation |
How the rate is set
The schedule comes from AS 23.10.065: $13.00 from July 1, 2025, $14.00 from July 1, 2026, and $15.00 from July 1, 2027 [1]. After that, the Alaska Department of Labor and Workforce Development adjusts it for inflation, using the consumer price index for the Anchorage metro area, figured each September 30 and rounded up to the nearest 10 cents [1].
The law also keeps Alaska’s rate at least $2 above the federal minimum wage: if the state rate ever falls to less than $2 over the federal rate, it’s raised to that level [1].
The minimum applies however you’re paid, by the hour, by the piece or on commission [1].
Tipped workers get the full rate
Alaska doesn’t allow a tip credit . An employer may not apply tips or gratuities as a credit toward the minimum wage [1]. So servers, bartenders and other tipped workers must be paid at least $14.00 an hour in wages, and their tips come on top.
Overtime: daily and weekly
Covered employees get one and a half times their regular rate for [3]:
- Hours over 8 in a day.
- Hours over 40 in a week, not counting hours already paid as daily overtime.
The overtime rule has exceptions, including for an employer with fewer than four employees in the regular course of business [3]. Ask the Wage and Hour section if you’re not sure your job is covered.
Paid sick leave
Since July 1, 2025, most Alaska employers have to provide paid sick leave [5][6]:
- You earn at least 1 hour for every 30 hours worked, including overtime [5][6].
- Employers with 15 or more employees must let you accrue and use up to 56 hours a year; smaller employers, up to 40 hours [5].
- Part-time workers earn it too [6].
- You can use it for your own illness or injury, to care for a family member, or for care or legal help related to domestic violence, sexual assault or stalking [6].
- An employer can ask for a health care provider’s note only if you use more than three consecutive workdays [6].
Salaried “exempt” workers
Being paid a salary doesn’t by itself mean you’re exempt from overtime [7]. For an executive, administrative or professional employee to be exempt in Alaska, the salary has to be at least two times the state minimum wage for the first 40 hours of each week [8]. At $14.00, that works out to at least $1,120 a week; at $15.00 from July 1, 2027, at least $1,200 [1][8].
Who isn’t covered
The minimum wage and overtime law doesn’t apply to some jobs, including agriculture and domestic service [4][6]. It also doesn’t cover a worker under 18 employed part time, no more than 30 hours a week [4].
Final paychecks
If you’re fired or laid off, your employer has to pay everything you’re owed within three working days [9]. If you quit, you’re due at the next regular payday that’s at least three days after your last day [9].
If you’re not paid what you’re owed
The Wage and Hour section of the Alaska Department of Labor and Workforce Development enforces the minimum wage and overtime and collects unpaid wages for workers [2]. File a wage claim with the department, which gives the employer 20 days to respond [7].
What $14.00 adds up to
At $14.00 an hour, 40 hours a week for 52 weeks comes to about $29,120 a year before taxes [1]. At $15.00, it’s about $31,200 [1].
Sources
- AS 23.10.065: Minimum wages
- Alaska Department of Labor and Workforce Development: Wage and Hour
- AS 23.10.060: Payment for overtime
- AS 23.10.055: Exemptions
- AS 23.10.066: Minimum paid sick leave benefit
- Alaska Department of Labor and Workforce Development: Minimum Wage and Paid Sick Leave FAQ
- Alaska Department of Labor and Workforce Development: Wage and Hour FAQ
- AS 23.10.055(b): Salary for executive, administrative and professional employees
- AS 23.05.140: Pay periods; final pay
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What is the minimum wage in Alaska in 2026?
$14.00 an hour since July 1, 2026. It was $13.00 from July 1, 2025 to June 30, 2026.
What will Alaska's minimum wage be in 2027?
$15.00 an hour starting July 1, 2027, under AS 23.10.065. After that, the law adjusts it each year for inflation using the Anchorage consumer price index.
Can Alaska employers pay tipped workers less?
No. Alaska law says an employer may not count tips or gratuities toward the minimum wage, so a server or bartender gets at least $14.00 an hour in wages, plus their tips.
How long do I have to file a wage claim in Alaska?
The Alaska Department of Labor and Workforce Development says claims for unpaid minimum wage or overtime must be filed within two years of when the work was done, and claims for straight-time wages or other promised benefits within three years.