The Alaska Department of Labor and Workforce Development (ADOL) has published the answers to frequently asked questions about a voter-approved ballot measure that will require employers to provide paid sick leave to employees beginning July 1, 2025.
The Details
Covered Employers
In the guidance, the ADOL reiterates that the paid sick leave requirement applies to all employers, but certain employees are exempt from the requirement, including:
- Minors under 18 years of age who work less than 30 hours per week. If the minor works more than 30 hours in a week, they must earn sick leave for all hours worked that week.
- Apprentices receiving a minimum wage exemption approved by the Commissioner of the Department.
- Student learners on a plan approved by the ADOL.
- Seasonal employees of a non-profit residential summer camp.
- Work therapy patients at a residential drug abuse or alcoholism treatment program.
- Employed prisoners.
- Employees covered by a collective bargaining agreement that expressly waives the right to sick leave in clear and unambiguous terms.
- Those exempt from minimum wage and overtime under state law, which includes employees in agriculture, aquaculture, domestic service, and federal and state employees.
Amount of Leave
Under the law, the amount of paid sick leave that employees are entitled to accrue on an annual basis depends on the size of the employer.
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Employer Size
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Paid Sick Leave
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15 or more employees
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56 hours of earned paid sick leave per year
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14 or fewer employees
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40 hours of earned paid sick leave per year
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The law allows employers with 14 or fewer employees to cap annual accrual at 40 hours, and employers with 15 or more employees to cap annual accrual at 56 hours.
In the guidance, the ADOL makes clear that while usage and accrual of sick leave are capped at either 40 or 56 hours per year, an employee's total sick leave balance may exceed those amounts because unused leave must be carried over to the following year and accrual will continue.
Existing Paid Leave Policies
In the guidance, the ADOL reiterates that the law doesn’t necessarily require that employers provide additional paid sick leave if their current paid time off (PTO) program meets the minimum requirements for paid sick leave and the employee is allowed to use that time for absences due to sickness or injury. In the same way that employers are free to pay an employee over minimum wage, they are free to offer a more generous leave program as long as it exceeds the requirements of the law. Employers should review existing plans for compliance with the new law, particularly regarding leave request procedures.
If an employee with a combined PTO/sick leave plan uses their entire leave balance for a vacation and later falls ill, they aren’t entitled to any additional paid leave, according to the guidance. If they accrue at least one hour of leave per 30 hours worked and have the option to use it as paid sick leave, the ADOL has stated that the employer has satisfied the requirements of the law.
Frontloading
Neither the law nor the guidance addresses whether frontloading is permitted.
Rate of Pay
Neither the law nor the guidance addresses the rate of pay during sick leave. The ADOL could
potentially provide additional guidance through formal rulemaking or informal FAQs in the future.
Next Steps
- Review leave policies and update them if necessary.
- Read the guidance in full.
- Watch for additional guidance and the sample notice that must be provided to employees from the Alaska Department of Labor and Workforce Development.
- Once published, provide the sample notice to new hires and existing employees.
- Prepare to allow employees to accrue and use paid sick leave beginning July 1, 2025.
- Train supervisors on how to handle leave requests.