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Alaska to increase minimum wage in 2021

11/05/20

Author: ADP Admin/Wednesday, November 4, 2020/Categories: Compliance Corner , State Compliance Update, Alaska

The minimum wage in Alaska will increase to $10.34 per hour on January 1, 2021. The change is a result of 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. As a result of the change in the minimum wage, the minimum salary required for these exemptions under state law will increase to $ 827.20 per week (twice the minimum wage for a 40-hour week) on January 1, 2021.


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, they 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. Please contact your dedicated service professional with any questions.

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