The headline numbers
Indexed annually; $13.00 effective July 1, 2025. Increases to $14.00 July 1, 2026 per Ballot Measure 1 (2024).
Alaska does not allow a tip credit. Employers must pay tipped workers the full state minimum wage of $13.00/hour as direct wage, with tips on top. This makes Alaska one of 7 jurisdictions where the tip credit is prohibited. Tipped workers in Alaska earn structurally more direct wage than workers in tip-credit states, and don't depend on tips to hit minimum wage.
Tip pool rules
No tip credit means BOH-inclusive tip pools are permitted without restriction. Manager exclusion still required under federal FLSA.
Universal rules that apply in every state regardless of tip credit status:
- Managers and supervisors cannot keep any portion of tips, even in a valid tip pool. This is a federal rule under FLSA Section 203(m)(2)(B) and applies in Alaska.
- Workers must keep all tips minus valid tip pool / tip-out contributions.
- If the employer uses a tip credit, only customarily tipped employees can be in the tip pool. To include BOH (cooks, dishwashers), the employer must pay full minimum wage to all participants.
Sidework and the 80/20 rule in Alaska
Not applicable — full minimum wage paid for all hours regardless of duty type.
Because Alaska doesn't allow a tip credit at all, the 80/20 rule is structurally moot here — every hour you work is paid at full state minimum wage regardless of duty type.
Local minimums that may apply
Several cities and counties in the U.S. set higher minimum wages than their state. Local minimums always supersede state minimums where applicable. Check whether your city has its own ordinance:
- No major city-level minimum wage ordinances in Alaska currently — the state minimum applies statewide for tipped workers.
Notable state-specific items
- No tip credit since 1991
- Ballot Measure 1 (2024) raises wage incrementally to $15 by July 2027 with annual indexing thereafter
How to verify the current numbers
Wages, indexed minimums, and tip credit rules change. Always cross-check before relying on specifics:
- State labor agency: https://labor.alaska.gov/
- State revenue agency (for tax info): https://tax.alaska.gov/
- Federal DOL Wage and Hour Division: dol.gov/agencies/whd