Alaska pays overtime twice as fast as federal law: 1.5x after 8 hours in a day, not just after 40 in a week. Enter your hours day by day for an Alaska estimate. The minimum wage rose to $14.00 an hour on July 1, 2026.
Rules verified November 2026 · Sources: U.S. Department of Labor, Alaska Department of Labor and Workforce Development
By Mudassir Khan
Alaska Wage and Hour Act rules. Hours are never counted twice (no pyramiding).
Alaska employers with fewer than 4 employees are exempt from the state overtime rules. Standard Alaska rules for nonexempt employees.
Estimates only. Not tax, legal, or payroll advice. Confirm with your employer or a qualified professional.
The Alaska Wage and Hour Act requires 1.5 times the regular rate for hours over 8 in a day or 40 in a week. Hours already paid as daily overtime are not counted again toward the weekly 40.
Ballot Measure 1 set a fixed schedule: $13.00 from July 1, 2025, $14.00 from July 1, 2026, and $15.00 from July 1, 2027. Alaska bans tip credits, so tipped workers earn the full rate in cash.
Employers with fewer than 4 employees are not subject to Alaska state overtime rules, though federal FLSA rules can still apply. Everyone else follows the daily and weekly triggers.
Overtime hours = hours over 8 in a day + straight time hours over 40 in the week. Gross = (regular hours × rate) + (overtime hours × rate × 1.5)
| Rule | Alaska |
|---|---|
| Overtime rule | Alaska Wage and Hour Act: 1.5 times pay after 8 hours in a day or 40 hours in a week |
| Minimum wage 2026 | $14.00 an hour from July 1, 2026 ($13.00 before; no tip credit) |
| State income tax | None |
| Claim agency | Alaska Department of Labor and Workforce Development, Wage and Hour |
| Claim deadline | 2 years for overtime and minimum wage claims |
| Worker | Math | Gross |
|---|---|---|
| $20/hr, five 10 hour days (50 hrs) | 40 × $20 + 10 × $30 | $1,100.00 |
| $18/hr, five 9 hour days (45 hrs) | 40 × $18 + 5 × $27 | $855.00 |
| $14/hr, five 8 hour days (40 hrs) | 40 × $14, no overtime | $560.00 |
| $25/hr, four 12 hour days (48 hrs) | 32 × $25 + 16 × $37.50 | $1,400.00 |
Example 1 shows the Alaska advantage: five 10 hour days earn 10 overtime hours here but only 10 weekly overtime hours under federal law at the same 50 hour total, and zero daily premium anywhere without a daily rule.
No Alaska state income tax. Alaska is one of the few states with no income tax, so overtime premium is reduced only by federal taxes. Combined with daily overtime, an Alaska overtime hour keeps more of its value than almost anywhere else.
The July 1 rhythm. Alaska raises its minimum wage mid year, not in January. Payroll teams that update rates only at New Year will be half a year late. Mark July 1, 2027 now, when the rate becomes $15.00.
Liquidated damages double the stakes. Workers suing under the Alaska Wage and Hour Act can recover liquidated damages equal to the unpaid wages, unless the employer proves good faith. Document every hour.
For another daily overtime state with a rate based trigger, see the Nevada overtime calculator. The federal baseline is explained in the FLSA overtime rules guide.
Yes. Alaska requires 1.5 times the regular rate for hours over 8 in a day, plus 1.5 times for straight time hours over 40 in a week. No hour is counted twice.
$14.00 an hour from July 1, 2026, up from $13.00. It rises to $15.00 on July 1, 2027. There is no tip credit.
With the Wage and Hour section of the Alaska Department of Labor and Workforce Development. Overtime and minimum wage claims must be filed within 2 years of when the work was performed.
No. Alaska has no state income tax, so no state tax comes out of overtime pay. Federal taxes still apply in full.
Yes. Alaska does not allow tip credits, so tipped employees must receive the full $14.00 an hour in cash wages, with tips on top.
Employers with fewer than 4 employees are exempt from Alaska state overtime rules, though federal FLSA overtime can still apply to their workers.
Rates and rules checked against these sources in November 2026.
For another daily overtime state, try the Nevada overtime calculator. For federal only math, use the main overtime calculator.