The minimum wage for Alasksans went up by 15 cents on Friday January 1, 2021. Voters passed a ballot initiative in 2014 to adjust the minimum wage annually for inflation.
The Alaska Department of Labor and Workforce Development reports that the wage increased from $10.19 to $10.34, according to a September 16, 2020 release.
Alaska Statute 23.10.065(a) requires the Alaska minimum wage to be adjusted using the Consumer Price Index for urban consumers in the Anchorage metropolitan area (Anchorage CPI-U) for the preceding calendar year. The Anchorage CPI-U increased 1.4 percent in 2019. As a result, the minimum wage will rise from $10.19 to $10.34 effective Jan. 1, 2021. By law, Alaska’s minimum wage must remain at least $1 per hour over the federal minimum wage.
The Alaska minimum wage applies to all hours worked in a pay period. That’s regardless of how the employee is paid – whether by time, piece, commission or otherwise. All actual hours worked in a pay period multiplied by the Alaska minimum wage is the least an employee can be compensated by an employer unless the employer can show that a specific exemption exists.
According to this report, tips don’t count toward the minimum wage. Public school bus driver wages must be no less than twice the current state minimum wage. Also, certain exempt employees must be paid on a salary basis of no less than twice the current state minimum wage based on a 40-hour work week in order to maintain their exempt status.