Wage increase of 2025's second round set for implementation on July 1

In a significant move, Alaska is set to increase its minimum wage and implement paid sick leave for workers starting July 1, 2025. This change is the result of a ballot initiative that passed in November 2024.

As of July 1, 2025, the minimum wage in Alaska will rise from $11.91 to $13 per hour. This marks the second wage hike in 2025, following an automatic inflation adjustment that took effect on January 1, 2025. It's important to note that Alaska's minimum wage applies to all hours worked in a pay period, regardless of payment method.

The increase in minimum wage also affects certain exempt employees who must be paid a minimum salary of not less than twice the current minimum wage based on a forty-hour work week. For instance, public school bus drivers' wages will increase from $48,796.80 per year in 2024 to $49,545.60 per year in 2025.

In addition to the minimum wage increase, Alaska's ballot measure also requires paid sick leave. Employees earn one hour of sick leave for each thirty hours worked, with exceptions for exempt employees and part-time workers. Companies with fourteen or fewer employees must allow up to forty hours of sick leave per year, while companies with fifteen or more employees must allow up to fifty-six hours.

Paid sick leave can be used for various reasons, including injury, illness, caring for a family member, or receiving care or legal help related to domestic violence, sexual assault, or stalking. Employers may not ask for proof of illness unless the absence extends beyond three consecutive workdays.

It's worth mentioning that the search results do not contain information about the person or organization that submitted the initiative to raise the minimum wage in Alaska to $13 per hour in 2025.

There are some workers who are exempt from both the minimum wage increase and the paid sick leave requirement. These include workers already exempt from minimum wage and overtime, such as agriculture, domestic service, and federal and state workers. Minors under age 18 working less than thirty hours per week, student learners, apprentices, employed prisoners, work therapy patients, or seasonal employees at a nonprofit residential summer camp are also exempt.

Further voter-approved increases to Alaska's minimum wage are scheduled for July 1, 2026 ($14 per hour) and July 1, 2027 ($15 per hour). After 2027, automatic inflation adjustments will resume on January 1, 2028.

Tips do not count toward the minimum wage in Alaska, which means that workers in the hospitality industry can still rely on their tips to supplement their income.

This change is a significant step forward for workers in Alaska, providing them with better financial security and improved work-life balance.