Alaska Minimum Wage 2026 and 2027: What Employers Must Pay

If you are searching for the Alaska minimum wage for 2026, the answer is $14.00 an hour, effective July 1, 2026. It rises to $15.00 an hour on July 1, 2027, and then adjusts for inflation each January 1 starting in 2028. Those figures come from Ballot Measure 1. This guide covers the wage schedule, the salary test for exempt staff, overtime, paid sick leave, required posters, and the state and local items that sit next to payroll. It reflects the rules as of October 15, 2026.

Disclaimer: This article is informational content, not legal or tax advice. Wage and employment rules have exceptions that depend on your business and your workers. Confirm your obligations with the agencies named below, and talk with a qualified employment attorney or CPA before you change pay practices.

Alaska Minimum Wage Schedule for 2026 and 2027

The Alaska minimum wage is not a single fixed number. It steps up twice in the next two years, and then it begins to track inflation. The table below shows the schedule and the weekly salary floor for exempt staff, which is tied to the minimum wage.

Effective date	Alaska minimum wage (per hour)	Weekly salary floor for exempt staff (40 hours)
Before July 1, 2026	$13.00	$1,040
July 1, 2026	$14.00	$1,120
July 1, 2027	$15.00	Confirm with Wage and Hour (the same formula gives $1,200)
January 1, 2028, and each January 1 after	Adjusted for inflation	Adjusted with the minimum wage

Since July 1, 2026, the rate has been $14.00. Any hourly worker paid less than that is below the current minimum. Be aware that some older Wage and Hour employee FAQ pages still show $13. That figure is out of date. Use the schedule above, and confirm the current rate directly with the Wage and Hour Section of the Alaska Department of Labor and Workforce Development at 907-269-4900.

For 2028 and later, the measure ties increases to inflation each January 1. The state will publish the adjusted figure, so check it before you set that year's payroll.

Exempt Salaries: The Weekly Salary Test

Executive, administrative and professional employees can be paid a salary instead of hourly pay and still be exempt from overtime. The salary has to meet a statutory floor, which is twice the minimum wage for a 40-hour week. At $14.00 an hour, that works out to $14.00 times 2 times 40, or $1,120 a week, effective July 1, 2026. Before that date the floor was $1,040 a week.

A salary above the floor does not make a worker exempt by itself. The employee's actual duties still have to match an executive, administrative or professional role. Duties are where most employers get the classification wrong, so review the job description and the day-to-day work before you rely on the salary figure.

The floor moves with the minimum wage. Using the same formula, $15.00 an hour produces $1,200 a week once it takes effect on July 1, 2027. Confirm that figure with Wage and Hour before you set 2027 salaries, because the agency's published number controls.

Alaska Overtime Laws: Who Must Pay Time and a Half

Alaska overtime laws require overtime at 1.5 times the regular pay rate for hours worked beyond 8 in a day or 40 in a week. The overtime rule applies only to employers with four or more employees. An employer with three or fewer employees may pay straight time for overtime hours.

The employee count matters, so confirm how it is calculated with Wage and Hour before you rely on the exemption. Part-time, seasonal and temporary workers can affect the count, and the agency can tell you how it applies to your situation.

Comp time is not a lawful substitute for overtime in Alaska. You cannot bank extra hours and give the employee time off later in place of paying overtime. If overtime is owed, it must be paid.

Here is a simple example. An employer with four or more employees pays a worker $14.00 an hour. The worker works 10 hours in one day. The first 8 hours are paid at $14.00, or $112. The 2 overtime hours are paid at $21.00, or $42. The total for that day is $154. This example assumes hourly pay with no other compensation.

Paid Sick Leave Requirements

Alaska requires paid sick leave, effective July 1, 2025. Employees accrue 1 hour of paid leave for every 30 hours worked, up to 56 hours a year. At that rate, an employee reaches the 56-hour cap after 1,680 hours worked.

Whether a requirement applies to your business depends on employer size and other rules. The Wage and Hour sick leave FAQ explains those size rules. Read it before you write your policy, and do not assume your business is exempt or covered until you have confirmed it against the agency guidance.

Required Labor Posters

Alaska employers must display required labor posters where employees can see them. Wage and Hour is the source for the current set. Call 907-269-4900 to ask which posters apply to your workforce, and check the set again when wage figures change, since the posted information must be current.

Alaska Employment Laws and Local Rules

Alaska has no counties. Local government is made up of organized boroughs, cities, and the Unorganized Borough. Cities and boroughs can set their own business rules, so the state rules in this guide are only part of the picture. Ask the clerk or finance office of each city or borough where you have employees or operate whether any local ordinance affects wages, leave or scheduling.

Local general business licenses also differ by city. Some cities require one, while Anchorage, Ketchikan and Homer do not. Check each location before you open or hire there.

State Business License and Taxes to Plan Around

Most businesses operating in Alaska need a statewide business license under AS 43.70 from the Division of Corporations, Business and Professional Licensing within the Department of Commerce, Community, and Economic Development. The license costs $50 for one year or $100 for two years, for new applications and renewals. It is separate from forming an LLC or corporation, which is filed with the Corporations Section of the same division. Alaska has no Secretary of State. Entity filings carry a $250 filing fee, and LLCs and corporations file a biennial report every two years, not annually, at a fee of $100 plus a no-fee initial report.

Alaska has no state personal income tax and no state sales tax. Local sales tax is a different matter. About 107 municipalities levy local sales tax, generally from 1% to 7%, with most falling between 2% and 5%. Many cities and boroughs also levy a bed tax on lodging. The rate depends on the specific city or borough, so confirm the rate for each place where you sell or lodge guests. The Alaska Department of Revenue, Tax Division, at tax.alaska.gov, covers state tax filings.

Employer Checklist for Alaska Labor Laws

1. Pay at least $14.00 an hour now, and budget for $15.00 an hour starting July 1, 2027.
2. Test every exempt salary against the $1,120 weekly floor, and document the duties behind each classification.
3. Count employees to determine whether overtime applies. For employers with four or more employees, pay 1.5 times the regular rate after 8 hours a day or 40 hours a week, and never substitute comp time.
4. Set up sick leave accrual at 1 hour per 30 hours worked, capped at 56 hours a year, after reading the Wage and Hour FAQ on size rules.
5. Request the current required posters from Wage and Hour at 907-269-4900.
6. Obtain the statewide business license under AS 43.70, then check city licenses and local sales or bed taxes for each location.

When to Get Professional Help

Talk with an employment attorney if you have a mix of exempt and hourly staff, seasonal or contract workers, or employees across several cities. Those situations turn on facts that a general guide cannot settle. A CPA can help with payroll tax treatment and with choosing a tax structure for the business. Alaska's Small Business Development Center also offers free advising for business owners at aksbdc.org.

Official Resources

• Alaska Department of Commerce, Community, and Economic Development, Division of Corporations, Business and Professional Licensing: commerce.alaska.gov/web/cbpl/Corporations
• Alaska Department of Revenue, Tax Division: tax.alaska.gov
• Alaska Small Business Development Center: aksbdc.org
• Wage and Hour Section, Alaska Department of Labor and Workforce Development: 907-269-4900

Reminder: This guide is informational only and is not legal, tax or employment advice. Verify current figures with the agencies above before you act on them.