Employer of Record for Alaska

Working Hours in Alaska

Alaska has specific employment and labor laws governing working hours, designed to protect employees’ rights and ensure fair compensation. Whether you’re hiring local employees or working with an Employer of Record (EOR), it's essential to understand the state's regulations around working hours to ensure compliance.

1. Standard Workweek and Overtime

Standard Work Hours:

 
• 8 hours per day
 
• 40 hours per week
     

State-Specific Regulations:

 
• Overtime is required for hours worked over 8 in a day or 40 in a week, paid at 1.5 times the regular rate.
 
• Certain exemptions apply, such as for small employers with fewer than four employees.
   

2. Meal and Rest Breaks

 
• No mandatory meal or rest breaks for employees aged 18 and over.
 
• Minors (under 18) must receive a 30-minute break after 5 consecutive hours of work.

Minimum Wage in Alaska

As of January 1, 2025, the minimum wage in Alaska is $11.91 per hour.

Overtime in Alaska

Alaska requires overtime pay at 1.5 times the regular rate for hours worked over 8 in a day or 40 in a week. Exemptions include certain small employers and specific job categories.

Payroll taxes in Alaska are deductions employers must take from employees’ wages and remit to the state. These taxes fund various state programs and services, including unemployment benefits and workers' compensation insurance.

Payroll Cycle in Alaska

Alaska law requires employers to establish regular pay periods, typically semi-monthly or monthly. Specific industries may have additional requirements, and final wages must be paid within three working days if employment is terminated.

Employment taxes and statutory fees affect both your payroll and your employees’ paychecks in Alaska. Understanding the tax obligations for both employers and employees is crucial when operating in Alaska's business landscape.

Employer Tax Contributions

Employers are responsible for taxes such as Unemployment Insurance and Workers' Compensation. Rates vary based on factors like industry and wage base.

Employer payroll contributions are generally estimated at an additional 1% to 2% on top of the employee salary in Alaska.

Employee Tax Contributions

Employee tax contributions are generally estimated at approximately 7.65% of employee salary in Alaska.

Alaska mandates certain benefits, including Unemployment Insurance and Workers' Compensation. While there's no state income tax, employers often provide additional benefits to attract talent. Offering comprehensive employee benefits can enhance recruitment and retention.

Employee Benefits for Alaska

Competitive benefits are essential for attracting and retaining top talent in Alaska. Offering the right package helps employees feel valued and motivated. Our benefits experts understand the local labor market's trends, requirements, and expectations, ensuring your employees feel valued and supported. Common benefits in our Alaska packages include:

• Pension or 401(K)
• Vision Insurance
• Life Insurance
• Medical Insurance
• Dental Insurance
• Health Savings Plan (HSA)
• Flexible Spending Account (FSA)

Family and Medical Leave

The Alaska Family Leave Act provides up to 18 weeks of unpaid, job-protected leave for eligible employees for certain family and medical reasons.

Sick Leave

While not mandated for private employers, many offer paid sick leave as part of their benefits package.

Vacation Leave

Alaska does not require employers to provide vacation leave, but it's commonly offered to remain competitive.

Voting Leave

Employers must provide paid time off for employees to vote if their schedules don't allow for at least two consecutive hours to vote outside working hours.

Jury Duty Leave

Employers must grant unpaid leave for jury duty and cannot penalize employees for serving on a jury. Employees are entitled to reinstatement after completing jury duty.