Business owners in Anchorage have expressed concerns about the potential impact of Alaska’s Ballot Measure 1, passed in November 2024 with 57.98% approval. The measure introduces significant changes, including annual minimum wage increases starting in 2025 and new employee benefit requirements.
The minimum wage will rise to $13 per hour in 2025, $14 in 2026, and $15 in 2027, ensuring it stays at least $2 above the federal minimum. Additionally, employers will provide paid sick leave as a requirement, with unused time carried over to the next year. This leave is 56 hours for those with more than 15 employees and 40 or more hours for most employees.
The law also forbids companies from making workers attend meetings on religious or political issues. At a recent meeting hosted at 49th State Brewing in Anchorage, local business owners discussed their fears. Many argued that the profit margins are still far from recovery due to the financial strain left by the pandemic.
Many attendees at the meeting disclosed that they are struggling to keep their businesses afloat. Celeste Hodge Growden, President and CEO of the Alaska Black Caucus, attended the meeting to better understand the measures’ implications. As a non-profit business, she is concerned about maintaining her small workforce.
Hodge voted yes for the ballot measure because she believes in higher wages. “But even with this ballot passing, one of the things we weren’t able to provide is the paid leave,” she said. Other attendees echoed similar sentiments, seeking clarity on the issue and the changes that could affect them.
The new wage requirements under Alaska’s ballot measure 1 will go into effect on July 1, 2025, with an early increase through 2027. The paid leave provision will also begin next year, leaving many business owners scrambling to adjust.
This news article was originally posted by Alaska´s News Source.
