Alaska will soon have a new schedule of minimum wage increases, a paid sick leave law, protections against captive audience meetings, and new allowable jobs for 18 to 20 year olds. All of these apply to employers of all sizes. Below are key details of these changes, which take effect on July 1, 2025, unless otherwise noted.
MINIMUM WAGE AND EXEMPT SALARY THRESHOLD
The minimum wage and minimum salary for exempt executive, administrative, and professional (EAP) employees will increase as follows:
July 1, 2025: $13 per hour and $1,040 per week for EAP employees
July 1, 2026: $14 per hour and $1,120 per week for EAP employees
July 1, 2027: $15 per hour and $1,200 per week for EAP employees
Starting on January 1, 2028, the minimum wage and minimum salary for exempt EAP employees will be adjusted annually based on inflation.
PAID SICK LEAVE
Employers will be required to provide employees with paid sick leave (PSL) starting on July 1, 2025, or when they begin employment, whichever is later. The law contains some employee exemptions, including for agricultural workers and minors working up to 30 hours per week.
Accrual, Carryover, and Frontloading
Employees will accrue PSL at a rate of one hour for every 30 hours worked. Exempt employee accrual can be based on a 40-hour workweek (even if they generally work more than that) or their usual number of hours if they regularly work less than 40 hours.
Employers can cap PSL accrual as follows:
Employers with 14 or fewer employees: 40 hours per year
Employers with 15 or more employees: 56 hours per year
Accrued but unused PSL must be carried over from year to year.
Employers can frontload PSL by providing all of the hours an employee would earn at the beginning of each benefit year.
Use
Employees will be able to use PSL as soon as it’s accrued, and time can be taken for the following reasons:
Their own or their family member’s mental or physical illness, injury, or health condition, including preventive medical care
Certain covered reasons related to domestic abuse, sexual assault, or stalking of the employee or their family member
Employers can cap PSL use as follows:
Employers with 14 or fewer employees: 40 hours per year
Employers with 15 or more employees: 56 hours per year
PSL needs to be provided in the smallest increment of time tracked by the employer’s payroll system (but not more than one hour).
Documentation
When employees use PSL for more than three consecutive workdays, employers can request reasonable documentation to support that the leave was taken for a covered purpose.
Employer Notice
Employers must give employees written notice of their PSL rights at the time of hire or within 30 days of the law’s effective date, whichever is later. The notice needs to include that employees are entitled to PSL starting July 1, 2025, the amount they’re entitled to, and the terms of its use. It also needs to say that employers can’t take retaliatory action against employees who request or use PSL.
Reinstatement
According to FAQs from the Alaska Department of Labor, employers aren’t required to pay out unused PSL when an employee quits or is terminated. However, employees who are rehired within six months of separation and did not have their PSL paid out must have their accrued but unused PSL restored.
Paid Leave Policies
Employers can use a paid leave policy to meet the requirements of PSL as long as it meets the requirements of the PSL law.
Action Items
Update your handbook to provide a PSL policy or, if you use our Smart Employee Handbook, accept the new policy when you receive the notification.
If you will be including PSL as part of an existing policy, make the necessary changes by July 1, 2025
Add the PSL notice to your new hire documentation and provide it to current employees within 30 days of July 1, 2025
CAPTIVE AUDIENCE MEETINGS
Employers will be prohibited from taking—or threatening to take—adverse action against an employee for not attending an employer-sponsored meeting if its primary purpose is to share the employer’s opinion on religious or political matters. The same applies to listening to employer communications for this purpose. The law defines matters as religious if they relate to religious affiliation and practice and the decision to join or support any religious organization or institution. Matters are considered political if they relate to any of the following:
Elections for political office, parties, and candidates
Proposed legislation or regulations
The decision to join or support any political party or political, civic, community, fraternal, or labor organization
The law contains several exceptions. For instance, it doesn’t apply to legally required communications, those necessary for employees to perform their job duties, and those directly related to the workplace. Additionally, the ban on religious meetings and communications doesn’t apply to religious organizations.
Action Item
Allow employees to opt out of any meeting or communication covered by this law and make sure supervisors understand the prohibition.
NEW ALLOWABLE JOBS FOR 18 TO 20 YEAR OLDS
Starting May 1, 2025, Alaska will allow 18 to 20 year olds to work in wineries, distilleries, and breweries and serve alcohol in those and certain other businesses, including restaurants and hotels.