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Alaska Votes to Increase Minimum Wage

12/05/24

Author: ADP Admin/Tuesday, December 3, 2024/Categories: Compliance Corner , State Compliance Update, Alaska

Alaska voters have approved Ballot Measure No. 1, which increases the state’s minimum wage incrementally. The current minimum wage in Alaska is $11.73 per hour and according to the Alaska Department of Labor website, it will increase to $11.91 on Jan. 1, 2025.  

The Details:

The approved ballot measure increases the minimum wage as follows:

July 1, 2025-                        $13.00 per hour

July 1, 2026-                        $14.00 per hour

July 1, 2027-                         $15.00 per hour

Thereafter, the minimum wage will be adjusted annually for inflation.

Alaska does not allow the use of a tip credit when paying tipped employees.

The approved ballot measure requires that the state must adjust the minimum wage to be at least $2.00 more than the federal minimum wage, which is $7.25 per hour.

Next Steps:

Alaska employers must pay its employees at least the minimum wage in accordance with the information provided above.

Have Questions?

Please contact your ADP Service Representative with any questions.  

 

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