Alaska Minimum Wage 2027: $14.00, Then $15.00 on July 1
Short answer: Alaska does not change on January 1, 2027. The minimum wage stays $14.00 until July 1, 2027, when it rises to $15.00 under the 2024 ballot measure. After that it is indexed to inflation, with the first adjustment on January 1, 2028. Alaska bans tip credits and requires daily overtime after 8 hours.
The schedule written into law
Alaska Statute 23.10.065 sets the minimum wage at $13.00 beginning July 1, 2025, $14.00 effective July 1, 2026 and $15.00 effective July 1, 2027, and then requires an annual inflation adjustment. The Department of Labor and Workforce Development's release says the same and adds that the first inflation adjustment comes January 1, 2028. Alaska's ballot measure summary also says the minimum wage must always be at least $2.00 above the federal minimum.
Because the 2027 step happens mid-year, a full-time worker paid exactly the minimum would earn about $30,160 before taxes in 2027 (1,040 hours at $14.00 plus 1,040 hours at $15.00), compared with $29,120 in 2026 at a steady $14.00 (the 2026 figure ignores the July 1, 2026 step from $13.00).
No tip credit, and daily overtime
AS 23.10.065 says an employer "may not apply tips or gratuities bestowed upon employees as a credit toward payment of the minimum hourly wage." So Alaska tipped workers get the full state minimum from the employer before tips. The U.S. Department of Labor's state table also lists Alaska overtime after 8 hours a day and 40 hours a week, with an option for a 10-hour day under a state-approved flexible work hour plan; employers with fewer than four employees are not covered by the premium pay requirement.
The federal deduction only counts overtime that the Fair Labor Standards Act requires, generally hours over 40 in a workweek. In Alaska, a worker who works five 10-hour days earns 10 hours of state daily overtime and also has 10 FLSA overtime hours, so both rules point to the same hours. But a worker on four 12-hour days has 8 FLSA overtime hours and more Alaska daily overtime hours. Only the FLSA-required premium is qualified. Details are in State vs. Federal Overtime and the Deduction.
As an illustration: at the July 2027 minimum of $15.00, 10 hours of weekly overtime for 40 weeks creates about $3,000 of half-time premium, well within the $12,500 cap.
Exempt salary rule
The Department of Labor and Workforce Development says exempt executive, administrative and professional employees must earn a salary equal to twice the minimum wage for the first 40 hours a week. It increased the weekly minimum from $952.80 to $1,040 on July 1, 2025. The same formula implies $1,120 a week at $14.00 and $1,200 a week at $15.00, but we have not seen those figures posted. Exempt employees get no state or federal overtime, and therefore no qualified overtime for the federal deduction. See why salaried exempt employees don't qualify.
Frequently asked questions
What is Alaska's minimum wage in 2027?
Alaska's minimum wage is $14.00 an hour until July 1, 2027, when it rises to $15.00 under Ballot Measure 1 (2024), codified at AS 23.10.065. So in the first half of 2027 it is $14.00 and in the second half $15.00.
When does Alaska's minimum wage start rising with inflation?
The Department of Labor and Workforce Development says that after the July 1, 2027 step to $15.00, the wage is adjusted annually for inflation starting January 1, 2028. The statute says the adjustment is calculated each September 30 from the Anchorage CPI-U and rounded up to the nearest 10 cents.
Does Alaska allow a tip credit?
No. AS 23.10.065 says an employer may not apply tips or gratuities as a credit toward the minimum wage, and the federal-style tip credit does not apply to the state minimum wage.
Is Alaska's overtime different from federal law?
Yes. The U.S. Department of Labor's state table lists premium pay after 8 hours a day and 40 hours a week, with an alternative 10-hour day under a voluntary flexible work hour plan approved by the state. The premium requirement does not apply to employers of fewer than 4 employees.
What salary makes an Alaska executive, administrative or professional employee exempt?
The Department of Labor and Workforce Development says such employees must earn twice the minimum wage for the first 40 hours. At $13.00 that was $1,040 per week from July 1, 2025. By the same formula it is $1,120 at $14.00 and $1,200 at $15.00 (our arithmetic, not a posted figure).
Sources and citations
Every dollar figure on this page was checked against the official pages below on November 14, 2026. If an agency updates its guidance, the agency page controls.