Alaska’s New Paid Sick Leave and Minimum Wage
In 2024, Alaska voters passed Ballot Measure 1 because many local business owners and workers believe that fair pay and paid sick leave make Alaska’s economy stronger. When workers are healthier and more stable, businesses see less turnover, better productivity, and happier customers—especially important in small, seasonal, and community-based Alaska businesses.
The law took effect July 1, 2025, and the Alaska Department of Labor is available by phone to help employers understand and follow it at no cost. You can also find their FAQ here.
Paid Sick Leave — What Alaska Employers Need to Know
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Employees earn 1 hour of paid sick leave for every 30 hours worked.
Employees working for small employers (fewer than 15 full-time equivalent employees) can earn up to 40 hours per year.
Employees working for larger employers (15 or more FTEs) can earn up to 56 hours per year.
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Sick leave earned and used in a given year must be shown on each employee’s pay stub.
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Employers can either:
Let unused sick leave carry over (up to the yearly limit), or
Give the full amount at the start of the year.
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Update your employee handbook to explain:
That employees are entitled to paid sick days
How much sick leave employees get
When it can be used
That employees cannot be punished for using it
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For illness or injury
To care for a family member
To get care or help for domestic violence, sexual assault, or stalking
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You can require advance notice for planned paid sick time off (up to 10 days).
For unexpected absences, employees must make an honest effort to give notice as soon as they can.
If someone is out more than 3 days, you may ask for a doctor’s note or similar documentation.
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Train managers on how paid sick days can be used, what notice is required, and what records have to be kept.
Sick leave records must be kept for 3 years.
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If you already offer PTO, you don’t need to add more as long as:
You offer at least as many PTO hours as the paid sick hours required
Employees are told clearly that they are allowed to use PTO for illness, injury, and safety needs
Minimum Wage — Alaska-Specific Updates
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$13.00/hour starting July 1, 2025
$14.00/hour on July 1, 2026
$15.00/hour on July 1, 2027
After that, wages adjust yearly for inflation
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To be exempt from overtime, salaried workers must earn a weekly salary that equals at least twice the current Alaska minimum wage for a 40-hour week.
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Tipped workers must still be paid the full minimum wage.
Some seasonal jobs may be exempt—double-check state guidance at this link to be sure.
Other
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Post Alaska labor law posters where employees can see them.
Give written notice of paid sick leave and minimum wage rules to all new hires.
Existing employees should already have received notice by July 31, 2025.
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Employers cannot require employees to attend meetings about political or religious topics.
If a meeting touches on political or religious topics, it must be clearly communicated that attendance is voluntary.
Employees cannot be punished for skipping those meetings.
Job-related meetings (safety, operations, performance) are still allowed.
Employers must update their employee handbook or other company policies with these rules, and train managers/supervisors on them.
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Free help: Call (907) 269-4900 for confidential guidance
Alaska Department of Labor provides FAQs, posters, and tools are online
Important note: This guide is created by Alaska Businesses for Good Jobs and is meant to help Alaska employers understand the law—it is not legal advice. Rules may change, so check with the Alaska Department of Labor or an attorney if you have specific questions or want to confirm you are following the rules.
Updated 3/31/26 Questions? akbiz4goodjobs@gmail.com
Alaska Businesses Supporting Paid Sick Days
Ballot Measure 1 ensured that Alaska workers have paid sick leave and better wages. But some state legislators want to undermine the law by exempting most of Alaska’s employers! That’s why it is so important for legislators to hear from ethical business owners like you. Sign on to the letter below to show your support for paid sick days.
To: Alaska State Legislators
Re: Alaska Businesses Urge You to Protect Paid Sick Days
Dear Members of the Alaska State Legislature,
We, the undersigned Alaska business owners, write to respectfully urge you to protect the paid sick days component of Ballot Measure 1 from legislative efforts to weaken or undermine it.
Alaskans spoke clearly at the ballot box. They want a healthier workforce, stronger family stability, and workplaces where employees are not forced to choose between a paycheck or taking care of their sick kid. As employers, we support this vision—we know firsthand that having healthy loyal employees lowers the cost of staff turnover and contributes to productive workplaces where customers and clients feel safe and receive better service.
Weakening Alaska’s paid sick days law would harm the businesses that have invested in healthier, more stable workplaces and communities. It takes time for that investment to pay off, and it is not always easy. But we know it can be done because many of us are doing it. Don’t put us at a disadvantage to businesses who would not otherwise provide this employee benefit.
Paid sick days protect public health, support working families, and create a fair and predictable environment for Alaska employers. We urge you to stand with the voters and the below signed business leaders to safeguard the integrity of Ballot Measure 1.
Thank you for your leadership and for supporting a strong, healthy workforce and a level playing field for Alaska businesses.
Sincerely,