Alaska Minimum Wage 2024: Everything You Need To Know

Alaska Minimum Wage 2024: Everything You Need To Know
What is the minimum wage in Alaska? Learn more about changes to the Alaskan minimum wage to better prepare your business as you grow and scale.
by Colleen Egan Oct 02, 2023 — 2 min read
Alaska Minimum Wage 2024: Everything You Need To Know

Small business owners in the Last Frontier State know how important it is to stay up to date on minimum wage regulations. You want to make sure you’re complying, of course. But staying aware of upcoming changes also lets you better plan for your business’s future.

That’s why we put together this quick guide with some key information you need to know about the minimum wage in Alaska.

What is the minimum wage in Alaska?

The minimum wage in Alaska increased to $10.85 on January 1, 2023. 

Notably, Alaska does not allow a tip credit against the state’s minimum wage. In contrast, many states allow employers to pay tipped employees a lower cash wage.

Here are some of the exceptions to the minimum wage and overtime pay rules under the Alaska Wage and Hour Act:

Some counties and cities can set their own wage laws, so be sure to check the standards in your city. It’s possible for the Anchorage, Alaska minimum wage, for instance, to change at a different rate than the rest of the state. It is important to know the laws in place protecting workers within the state of Alaska compared to other states. These laws apply to almost all workers, regardless of how they’re paid or the work they do.

Will the minimum wage change in 2024?

The Alaska minimum wage has been rising incrementally on an annual basis. Bloomberg Tax is estimating the minimum wage to increase from $10.85 an hour to $11.73 in 2024.

Are there plans to change the minimum wage beyond 2024?

There is a proposed ballot measure for 2024 that, if passed, will gradually raise the state’s minimum wage, increasing it to $13 an hour on July 1, 2025, $14 on July 1, 2026, and $15 by July 1, 2027.

How should small business owners prepare for changes to the minimum wage?

The Alaska minimum wage increase has grown steadily since its jump in 2016, but the four- and five-cent raises are not deemed substantial enough by some, and there are public calls for more substantial increases to keep up with the state’s high cost of living.

Here are some other steps you can take to make sure your business is ready for changes in the Alaska minimum wage, 2024 and beyond:

To make sure your business is prepared and stays in compliance with applicable wage laws, you should discuss Alaska minimum wage laws with your accountant and lawyer.

Colleen Egan
Colleen Egan writes for Square, where she covers everything from how aspiring entrepreneurs can turn their passion into a career to the best marketing strategies for small businesses who are ready to take their enterprise to the next level.


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