Alaska Minimum Salary for Overtime Exemption to Increase Twice in 2025

 The minimum salary required to qualify for exemption from overtime under Alaska state law is scheduled to increase twice in 2025, on Jan. 1, 2025, and again on July 1, 2025.

The details

Background

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.

For example, these exemptions include a minimum salary requirement that is twice the state’s minimum wage for a 40-hour workweek. 

Since the state’s minimum wage is scheduled to increase twice in 2025, the minimum salary required for overtime exemption will also increase twice in 2025.

Change Effective Jan.  1, 2025

On Jan.  1, 2025, the minimum salary required for Alaska’s administrative, professional and executive exemptions from overtime increases from $938.40 per week to $952.80 per week. This change is a result of an annual adjustment to the state’s minimum wage for inflation.

Change Effective July 1, 2025

Since voters approved a ballot measure to increase the state’s minimum wage to $13 per hour effective July 1, 2025, the state’s minimum salary required for the exemptions from overtime will increase again on that date, to $1,040 per week.

Next steps

Before classifying and treating any employee as exempt from overtime, employers should confirm that the employee satisfies all applicable tests for overtime exemption, including paying the employee at least the applicable minimum salary on Jan.  1, 2025, and July 1, 2025.