Hiring Employees in Alaska

Classifying Your Workers Correctly

Your company must distinguish properly between employees and independent contractors under IRS common law tests and Alaska wage and hour rules. You should look at behavioral control, financial control, and the overall relationship to decide if a worker is truly independent.

Alaska follows federal standards but can hold you liable for unpaid minimum wage, overtime, workers’ compensation premiums, and unemployment insurance if you misclassify workers. Civil penalties, back pay with interest, and potential litigation can significantly increase your hiring costs, so review roles carefully and document your rationale or get guidance from resources like https://www.playroll.com/blog/employee-misclassification-guide.

Verify Employee Work Eligibility

For every new Alaska hire, you must complete federal Form I-9 within 3 business days of the employee’s start date and inspect original identity and work authorization documents. You must retain I-9s for at least 3 years after the hire date or 1 year after termination, whichever is later.

Alaska does not mandate E-Verify for most private employers, but you may choose to use it voluntarily if you apply the program consistently. Make sure your onboarding team knows which documents are acceptable for I-9 purposes and stores them securely to protect employee data.

Create an Employee Onboarding Process

When you hire in Alaska, you should issue a clear written offer letter outlining pay rate, exempt or nonexempt status, work schedule, and benefits. Collect federal Form W-4, any direct deposit authorization, and signed acknowledgments for your employee handbook, at-will status, and key company policies.

Alaska requires you to provide information about workers’ compensation coverage and unemployment insurance, and you should also share required federal posters electronically or at the worksite. Building a consistent onboarding checklist helps you stay compliant and gives you better visibility into the true cost of each Alaska hire.

Pay Frequency & Methods

In Alaska, you must pay employees at least twice per month, and regular paydays cannot be more than 16 days apart. If you terminate an employee, you must pay all wages due within 3 working days after the last day worked, or by the next regular payday if the employee quits without notice, or you risk waiting-time penalties.

Payment Methods (How You Can Pay)

Your company can choose among several payment methods in Alaska, but you must always ensure employees receive their full wages on time and with an accurate itemized statement of earnings and deductions.

• Payroll Check: You may pay by check as long as it is payable at full face value in cash at a bank without fees to the employee.
• Cash: You can pay wages in cash, but you must still provide a written wage statement showing hours, rates, gross pay, and all deductions.
• Direct Deposit (EFT): You may use direct deposit in Alaska only if the employee voluntarily authorizes it and can choose the financial institution.
• Paycards: You can pay by paycard if employees have fee-free access to their full wages each pay period and receive clear disclosures of any card fees.
• Outsourced Payroll: You may outsource payroll to a provider, but your company remains responsible for compliance with Alaska wage payment and recordkeeping laws.

When you hire employees in Alaska, you must handle federal payroll taxes plus state unemployment insurance contributions, even though Alaska has no state income tax. You’ll need to register with the appropriate state agencies before running your first payroll.

Employer Tax Contributions

As an Alaska employer, you must pay federal Social Security and Medicare taxes, federal unemployment tax (FUTA), and Alaska unemployment insurance (UI) contributions. You must register for an Alaska UI account with the Department of Labor and Workforce Development and file quarterly wage reports.

Employee Payroll Tax Contributions

Your Alaska employees owe federal income tax, their share of Social Security and Medicare, and a contribution to state unemployment insurance that you must withhold from paychecks. You must provide each employee with a Form W-2 after year-end summarizing these withholdings.

Minimum Wage in Alaska

Alaska’s minimum wage is higher than the federal rate and is adjusted annually based on inflation; for 2025 it is $11.73 per hour. You must pay at least this rate to most nonexempt employees, with limited exceptions such as certain student learners and some agricultural or fishing roles.

Working Hours in Alaska

Alaska does not cap the total number of hours adults may work, but you must pay for all hours suffered or permitted to work and keep accurate time records. Special rules apply to minors under 18 regarding maximum daily and weekly hours and prohibited occupations, so you should confirm schedules before hiring youth workers.

Overtime in Alaska

Alaska requires overtime at 1.5 times the employee’s regular rate for hours worked over 8 in a day or 40 in a workweek, whichever results in more pay, unless an exemption applies. Certain industries, such as some seasonal or small-volume employers, may have limited exceptions, so you should review job duties and business type before classifying a role as exempt.

Alaska does not mandate most fringe benefits, but offering health insurance, retirement plans, and paid leave can make your company more competitive in a tight labor market. If you average 50 or more full-time employees across the U.S., federal ACA rules require you to offer affordable, minimum-value health coverage or face potential penalties.

Mandatory Leave Policies in Alaska

Paid Time Off in Alaska

Alaska law does not require you to provide paid vacation or general PTO, but once you adopt a policy, you must follow it consistently. Many Alaska employers offer 10–20 days of PTO per year to stay competitive, especially for remote or hard-to-fill roles.

You should clearly state accrual rates, carryover limits, and payout rules in your handbook, as Alaska may treat earned vacation as wages if your policy promises payout. Make sure your payroll system tracks PTO balances accurately so you can budget for these costs.

Maternity & Paternity Leave in Alaska

Private employers in Alaska are generally covered by federal FMLA if they have 50 or more employees, providing up to 12 weeks of unpaid, job-protected leave for birth, adoption, or foster placement. Smaller employers are not required to provide this leave but often offer some combination of unpaid parental leave and short-term disability benefits.

Alaska does not currently have a state paid family leave program, so wage replacement typically comes from employer-sponsored disability insurance or accrued PTO. Your company should define eligibility, notice requirements, and benefit coordination clearly so expecting parents understand their options.

Sick Leave in Alaska

There is no statewide mandate for paid sick leave in Alaska, but you must comply with any sick leave you promise in contracts or policies. Some employers provide separate sick banks, while others use a combined PTO model that covers vacation and illness.

Even without a state paid sick leave law, federal and state disability and anti-discrimination rules may require you to consider reasonable leave as an accommodation for serious health conditions. Document your process for requesting and approving medical leave to ensure consistent, non-discriminatory decisions.

Military Leave in Alaska

Employees in Alaska who serve in the National Guard or U.S. armed forces are protected by federal USERRA and state law, which generally require you to grant unpaid leave for service and training. You must reinstate eligible employees to the same or comparable position with the same seniority, status, and benefits when they return.

Your company cannot require employees to use vacation or PTO for mandatory military duty, though they may choose to do so. Make sure managers understand that discrimination or retaliation based on military status is prohibited.

Jury Duty in Alaska

Alaska employers must allow employees time off to serve on a jury and may not threaten, coerce, or penalize them for complying with a summons. State law does not require you to pay employees for this time, but many employers voluntarily provide some paid jury leave as a benefit.

You can request proof of jury service, such as a court notice or attendance slip, and you may adjust schedules around service when possible. Clearly explain in your handbook whether jury duty time is paid or unpaid so employees know what to expect.

Voting Leave in Alaska

Alaska law requires you to provide employees with enough time off to vote if they do not have 2 consecutive free hours outside of work while the polls are open. In that situation, the time off to vote must be paid and cannot be deducted from wages.

You may set reasonable rules about when employees can leave to vote, such as at the beginning or end of a shift, as long as they still have a fair opportunity. Train supervisors not to discourage voting or retaliate against employees who use this right.

Bereavement Leave in Alaska

Alaska does not mandate bereavement leave, paid or unpaid, for private employers. Many companies still offer 3–5 days of paid bereavement leave for immediate family members to support employees during a loss.

If you choose to provide bereavement leave, define who qualifies as “family,” how much time is available, and any documentation you may request. Applying your policy consistently helps avoid perceptions of unfair treatment or discrimination.

Termination Process

Alaska is an at-will employment state, so you can generally terminate employees for any lawful reason, but you must avoid discriminatory or retaliatory motives. You should document performance issues, follow your progressive discipline policy if you have one, and provide a final written notice summarizing the termination decision.

Notice Period

Alaska law does not require advance notice of termination or resignation for most private employees, unless you have a contract or collective bargaining agreement that says otherwise. However, you must meet state rules on final wage payment timing and pay out any earned wages or accrued benefits promised under your policies.

Severance

Severance pay is not required under Alaska law, but you may offer it voluntarily in exchange for a signed release of claims, especially for layoffs or position eliminations. If you adopt a severance plan, apply it consistently and ensure any release agreements comply with federal age discrimination and other applicable requirements.