A new year brings a new minimum wage in Alaska. Voters approved the increase in November, but the effective date is 90 days after the election was certified. The effective date for the increase will be February 24, 2015. At that time, minimum wage in Alaska will be $8.75, a full dollar higher than the current rate. The ballot measure will increase the rate to $9.75 on January 1, 2016 and adjust the wage each year thereafter for inflation. Alaska’s minimum wage must remain $1 higher than the federal minimum wage because of the new law. The current federal rate is $7.25.
There are currently an estimated 16,000 Alaskan jobs that pay less than $8.75 an hour and will need to be increased in February. Alaska’s minimum wage was last increased in 2010 when legislation was enacted that required the Alaska rate to be 50 cents above the federal minimum wage. With only a few exceptions, the wage applies to all employees in the private sector. Tips still do not count toward the minimum wage.
For full information on the new law, visit www.labor.alaska.gov
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