Alaska's minimum wage is $14.00 per hour as of July 1, 2026, up from $13.00 for January 1 through June 30, 2026. The tipped minimum wage is also $14.00 per hour. No tip credit is allowed — tipped employees must receive the full minimum wage.
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Alaska has set its minimum wage above the federal floor of $7.25/hr. As an employer, you must pay at least the applicable minimum wage to all non-exempt employees. Getting this wrong can result in back pay claims, penalties, and lawsuits.
Current Alaska Minimum Wage: $14.00/hr
| Standard Minimum Wage | $14.00/hr (from July 1, 2026) |
| Tipped Minimum Wage | $14.00/hr (no tip credit) |
| Federal Minimum Wage | $7.25/hr |
When both federal and state minimum wages apply, employers must pay the higher of the two. In Alaska, the state rate of $14.00/hr applies.
Tipped Employee Minimum Wage: $14.00/hr
Alaska does not allow a tip credit. Employers must pay tipped employees the full minimum wage of $14.00/hr in direct wages, before tips.
Federal vs. State Minimum Wage
The federal minimum wage has been $7.25/hr since 2009. Alaska has set a higher rate, so the state rate applies to all employers in Alaska.
Local Minimum Wage Exceptions
Alaska's minimum wage is $14.00/hr statewide. No tip credit is allowed, so tipped employees must receive the full minimum wage.
Overtime and Minimum Wage
Under the FLSA, non-exempt employees who work more than 40 hours in a workweek must be paid at least 1.5x their regular rate. The overtime rate is based on the actual rate paid (which must be at least the minimum wage), not a fixed multiplier of the minimum.
For more on overtime rules, see our Overtime Pay Rules guide.
Employer Compliance
- Pay at least $14.00/hr to all non-exempt employees
- Track tipped employee earnings and make up tip credit shortfalls
- Display the required minimum wage poster in a visible workplace location
- Keep accurate payroll records for at least 3 years (federal requirement)
- Monitor for local minimum wage ordinances in your municipality
Frequently Asked Questions
What is the Alaska minimum wage in 2026?
The Alaska minimum wage is $14.00 per hour as of July 1, 2026. It was $13.00 per hour from January 1 through June 30, 2026. No tip credit is allowed, so tipped employees must receive the full minimum wage.
What is the tipped minimum wage in Alaska?
The tipped minimum wage in Alaska is $14.00 per hour. Alaska does not allow a tip credit, so tipped employees receive the full minimum wage before tips.
Does Alaska follow the federal minimum wage?
No, Alaska has set its own minimum wage at $14.00/hr, which is above the federal minimum of $7.25/hr.
What are the penalties for violating Alaska minimum wage laws?
Employers who fail to pay the minimum wage in Alaska may face back pay obligations, penalties, fines, and potential lawsuits from affected employees. The Wage and Hour section of the Alaska Department of Labor and Workforce Development's Labor Standards and Safety Division enforces the state minimum wage.
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Legal & Tax Disclaimer
This article is for general informational purposes only and does not constitute legal, tax, or professional advice. Employment laws, tax regulations, and compliance requirements change frequently. The information on this page reflects our understanding as of February 2026 and may not reflect recent changes in federal or Alaska state law.
Do not act or refrain from acting based solely on the information in this article. Always consult a qualified attorney, CPA, or HR professional familiar with Alaska law before making payroll or compliance decisions for your business.