Alaska Increases Minimum Wage for 2019
12/01/18
Author: Jody Rodney/Thursday, November 29, 2018/Categories: News
Overview: The minimum wage in Alaska will increase to $9.89 per hour on January 1, 2019. The change is a result of an annual adjustment for inflation. All non-exempt employees must be paid at least the minimum wage per hour.
Effective Date: January 1, 2019
Details:
Administrative, Professional, and Executive Exemptions:
To be classified as exempt from overtime under Alaska state law (Alaska Statute 23.10.055), bona fide administrative, professional, and executive employees must satisfy certain salary and duties tests. As a result of the change in the minimum wage, the minimum salary required for these exemptions under state law will increase to $791.20 per week (twice the minimum wage for a 40-hour workweek).
Compliance Recommendations:
Alaska employers must comply with the new minimum wage and post an updated minimum wage poster. The updated poster is available for download in the State & Federal Resources section of our website.
Employers with exempt employees must ensure that these workers’ salaries meet the new minimum salary requirement (along with the duties tests). Otherwise, these workers must generally 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).
http://labor.alaska.gov/lss/forms/2019_Minimum_Wage_Determination.pdf
Call to Action: Alaska employers should ensure compliance with the new law.
Please contact your Relationship Manager or Service Team with any questions.