Alaska, known for its breathtaking landscapes and extreme weather, also has unique labor regulations that you should be aware of if you work or plan to relocate there.
One of the most frequently asked questions among Latino workers in the United States is: what is Alaska’s minimum wage in 2025? The short answer is $13.00 per hour, but you should be aware of some additional details.
What is the current minimum wage in Alaska?
As of January 2025, Alaska’s minimum wage is $13.00 per hour. This figure puts the state above the federal minimum wage, which is currently $7.25 an hour.
The most important thing is that this amount is not fixed; it is adjusted annually using a formula based on inflation and the consumer price index. In this way, the minimum wage attempts to keep up with the cost of living in the state.
How does overtime work in Alaska?
A particular feature of the Alaska labor system is overtime pay, also known as time premium.
In Alaska, employees must receive additional pay (1.5 times the regular wage) for:
More than 8 hours worked in a single day, or
More than 40 hours worked in a work week.
That is, if you work 10 hours one day, the two additional hours are compensated at 150% of your base salary.
This additional payment is not applicable if you work for a company with fewer than four employees. In addition, the Alaska Department of Labor has approved a model that allows 10-hour workdays four days a week, as long as you do not work more than 40 hours per week. This model is known as a flexible workweek and requires prior approval.
Who sets the minimum wage in Alaska?
The Alaska Department of Labor and Workforce Development is responsible for establishing and adjusting the state minimum wage.
Every year, through economic analysis, it determines whether it is necessary to raise the rate to keep pace with the cost of living for its residents.
This periodic review protects workers’ wages from losing value over time, which is especially important in a state where the cost of goods and services may be higher than in other parts of the country due to its geographic location.
Alaska labor rights
Fair pay for every hour worked.
Additional compensation for overtime (when applicable).
Safe and dignified working conditions.
Right to report abuse without retaliation.
If you have any concerns or believe that your employer is not following the regulations, you can contact the Alaska Department of Labor or visit its official website. There are also community organizations and Spanish-language hotlines that can help.
Although the minimum wage of $13.00 per hour appears to be competitive when compared to the federal minimum wage, many working families continue to struggle due to Alaska’s high cost of living. Food, utilities, and transportation are often more expensive in cities like Anchorage, Fairbanks, and Juneau.
