Alaska’s new minimum wage laws will increase employees’ pay from 2025 to 2027. On January 1st, Alaska’s minimum wage workers will see a raise in their hourly pay by 18 cents to $11.91. The state measured this increase due to a 2014 ballot measure using the Anchorage area’s 1.5% consumer price index rise in 2023.
The minimum wage will climb to $13 an hour on July 1st after the initial bump in pay in January. Voters approved a new ballot initiative earlier this year, further leading to this development. With future inflation adjustments, the same measure will raise pay to $14 an hour and $15 an hour in 2027.
Salaried employees will also see changes. State law requires salaried workers to pay at least twice what minimum wage workers make for a 40-hour workweek. Starting in January, the minimum weekly pay for salaried employees will rise from $938.40 to $952.80.
The ballot item for 2023 is more than just a pay raise. It requires a paid sick leave program that lets employees build up leave over time. Additionally, it forbids employers from making employees attend meetings on religious or political issues that do not correlate with their jobs.
The ballot advocates claim these long-overdue reforms will help the economy and create jobs. However, opponents contend that companies will find it challenging to cover the increased labor costs, especially in sectors like oilfield services, restaurant and bar owners, and tourism.
After the July wage increase, Alaska will still have the lowest minimum wage among West Coast states, according to the U.S. Department of Labor. The upcoming changes highlight ongoing debates over balancing economic growth with worker protections under Alaska’s new minimum wage laws.
This news article was originally published by Anchorage Daily News.
