Alaska minimum wage 2025: $11.73/hr
Current Alaska minimum wage for non-tipped workers, tipped workers, overtime rules, exemptions, scheduled increases, and how $11.73/hr compares to the federal rate and to other US states. Verified against Alaska's labor department.
Data last updated: Jan 15, 2025Key Takeaways
- Alaska minimum wage: $11.73/hr (effective 2025-01-01).
- Tipped minimum: $11.73/hr — no tip credit allowed.
- Higher than federal: $4.48 above the $7.25 federal minimum.
- Next increase: Adjusted annually based on CPI. No tipped sub-minimum wage allowed.
What is the minimum wage in Alaska?
The $Alaska minimum wage is $11.73 per hour as of 2025-01-01. A full-time employee working 40 hours per week at this rate earns approximately $24,398 per year in gross pay before taxes.
Alaska's rate exceeds the federal minimum of $7.25/hr by $4.48. When state and federal minimums differ, employers must pay whichever is higher, so Alaska employers must pay the state rate to all workers covered by state wage laws.
Tipped minimum wage in Alaska
Alaska does not allow a separate tipped-wage rate. Tipped employees (servers, bartenders, valets, delivery workers) must be paid the full state minimum of $11.73/hr as their base wage, regardless of how much they earn in tips. Tips received are on top of this base rate.
How Alaska compares nationally
Across all 51 US jurisdictions, minimum wage ranges from $5.15/hr (Wyoming, the lowest) to $17.50/hr (District of Columbia, the highest). Alaska sits at #25 of 51, meaning it's in the upper middle.
Local minimum wages in Alaska
None. State preemption applies.
If a city or county has a higher local minimum wage, employers in that jurisdiction must pay the higher local rate. State law is a floor, not a ceiling, for local minimum wage ordinances.
Scheduled future increases
Adjusted annually based on CPI. No tipped sub-minimum wage allowed.
Overtime rules in Alaska
Alaska requires overtime pay at 1.5x after 8 hours per day or 40 hours per week.
Minimum wage exemptions
Small employers (fewer than 4 employees), certain agricultural workers, and domestic service employees may be exempt.
What to do if you're underpaid
Underpayment below the legal minimum is a wage-and-hour law violation. Your options:
- File a state wage claim. The $Alaska labor department accepts wage claims and can pursue unpaid wages, penalties, and liquidated damages on your behalf. See the source links below for direct links.
- File a federal Department of Labor complaint. The US DOL Wage and Hour Division handles FLSA violations. Federal filings have a 2-year statute of limitations (3 years for willful violations).
- Consult an employment lawyer. Significant underpayment or retaliation claims often warrant a private attorney. Many employment lawyers work on contingency. See our Alaska employment lawyer directory.
- Document everything. Save pay stubs, timesheets, and employer communications. The burden of proof for unpaid wages usually rests on the employee.
Frequently Asked Questions
-
What is the minimum wage in Alaska in 2025?
The Alaska minimum wage is $11.73 per hour for non-tipped workers, effective 2025-01-01. This is $4.48 higher than the federal minimum of $7.25/hr, so Alaska employers must pay the state rate. Alaska ranks #25 of 51 US jurisdictions by minimum wage level.
-
What is the tipped minimum wage in Alaska?
The Alaska tipped minimum wage is $11.73 per hour. Alaska does not allow a separate tipped-wage rate; tipped employees must earn the full state minimum wage of $11.73/hr regardless of tips received. The federal tipped minimum is $2.13/hr, so states with no separate tipped wage effectively require employers to pay the full minimum up front.
-
Does Alaska pay higher than the federal minimum wage?
Yes. Alaska's $11.73/hr is $4.48 above the federal minimum of $7.25/hr. When state and federal minimums differ, employers must pay the higher of the two, so Alaska employers are required to pay the state rate.
-
How much is a full-time minimum-wage job in Alaska?
At $11.73/hr for a standard 40-hour week, a full-time minimum-wage worker in Alaska earns approximately $24,398/year gross before taxes. Take-home pay varies by local tax rate, employee benefits, and whether the employer offers paid leave. Overtime hours (over 40/week, or in some states over 8/day) are paid at time-and-a-half or more.
-
Are there local minimum wages in Alaska that differ from the state rate?
Yes. None. State preemption applies. When a local ordinance sets a higher minimum wage, employers in that jurisdiction must pay the higher local rate. Check your specific city or county's ordinance if you work in an urban area.
-
Are minimum wage increases scheduled in Alaska?
Yes. Adjusted annually based on CPI. No tipped sub-minimum wage allowed. Check the Alaska Department of Labor – Wage and Hour for the current effective schedule.
-
What happens if my employer pays less than the Alaska minimum wage?
Underpayment is a violation of state and federal wage-and-hour law. Remedies usually include recovery of unpaid wages, interest, liquidated damages (often doubling the amount owed), and attorney's fees. You can file a wage claim with the Alaska labor department, file a federal Department of Labor complaint, or bring a private lawsuit. The filing deadline varies; federal FLSA claims have a 2-year statute of limitations (3 years for willful violations). Consult a Alaska employment lawyer for significant underpayment claims.