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Alaska’s minimum wage to increase in 2020


Author: ADP Admin/Thursday, October 31, 2019/Categories: Compliance Corner

The minimum wage in Alaska will increase to $10.19 per hour on January 1, 2020. This change is the result of an annual adjustment for inflation. All non-exempt employees must be paid at least the minimum wage per hour.

Administrative, Professional, and Executive Exemptions:

To be classified as exempt from overtime under state law (Alaska Statute 23.10.055), bona fide administrative, professional, and executive employees must satisfy certain salary and duties tests. These employees must be paid a weekly salary that is equivalent to at least two times the state minimum wage for a 40-hour workweek. As a result of the change in the minimum wage, the minimum salary required for these exemptions under state law will increase to $ 815.20 per week.

Compliance Recommendations:

Alaska employers must comply with the new minimum wage and post an updated minimum wage poster.

Employers with exempt employees must ensure that these workers' salaries meet the new minimum salary requirement. Otherwise, these workers must be classified as non-exempt and paid overtime whenever they work more than eight hours in a day or 40 hours in a workweek.

Note: The state's overtime requirements don't apply to employers with fewer than four employees. However, federal overtime requirements may still apply.

Please contact your dedicated service professional with any questions.