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Nobody ever said running a business was easy. As an employer, you have many things to handle, and compliance is just one of them.
In addition to U.S. Federal regulations, each state has its own share of employment-related laws that business owners need to be aware of. Here, we’re highlighting some of these key state-specific requirements, and offering guidance to help you keep up.
Bear in mind that this list is not comprehensive, and there may be local or industry-specific employment requirements that your business needs to comply with. It’s best to consult with counsel to ensure compliance with all applicable laws, as Justworks does not provide legal advice.
Payroll Tax Accounts
Because Justworks reports state unemployment taxes on behalf of customers who utilize Justworks’ PEO services, Justworks may need to collect account information such as your account number and current rate. You can read more about it here: State Unemployment Insurance.
Independent Contractors
When deciding whether to classify workers as employees or independent contractors, there are a few things your business should consider, including the varying tests that apply under different federal and state employment laws, and the potential penalties and other liabilities for misclassifying employees as independent contractors.
You can read our general Help Center article on contractors, and view information on how to determine if someone is a contractor or employee in Alaska in the relevant section at the link below.
State of Alaska Workers’ Compensation Division: What Employers Must Know about Workers’ Compensation Insurance In Alaska - Independent Contractors
Pay Requirements
Minimum Wage & Overtime
Alaska’s minimum wage requirement is higher than the federal minimum wage.
Alaska law requires employers with 4 or more employees to pay employees at the overtime rate, unless otherwise exempt when they work more than eight hours in a workday and/or more than 40 hours in a week. Overtime rate is defined as one and a half times (1.5x) the employee's regular rate of pay.
Mineral*: Alaska Minimum Wage and Overtime
Alaska Department of Labor and Workforce Development (DOLWD): Wage And Hour
Exempt Salary Requirements
Alaska has exemptions to salary requirements that differ in some ways from the federal Fair Labor Standards Act (FLSA) so employers should review their application closely when determining whether an employee is exempt from minimum wages and overtime requirements.
Certain employees considered exempt from minimum wage and overtime requirements in Alaska are required to be paid a minimum salary of at least the state-exempt salary threshold in order to maintain their exempt status. The exempt salary threshold in Alaska is tied to minimum wage, and reflects a salary of two times the minimum wage, assuming a 40-hour workweek.
For example, if the applicable state minimum wage is $11.73 per hour, an exempt employee must be paid at least $938.40 per week ($11.73 x 2= $23.46 x 40 hours), or $48,796.80 annually.
Alaska Department of Labor and Workforce Development (DOLWD): Minimum wage and overtime information
Pay Parity
Alaska generally requires that women not be paid at a lesser rate than men for jobs requiring comparable skill, effort, and responsibility.
Mineral*: Alaska Pay Equity and Transparency
Meal and Rest Laws
Minors under the age of 18 must have at least a 30-minute meal break if they work 5 or more consecutive hours and will continue to work. The employer has the discretion to schedule this break but it must occur after the first one and a half hours of work and prior to the last hour of work.
These rules do not apply to minors in certain industries as well as those employed by family members. Employees age 18 or over are not entitled to a break under Alaska law, but if an employer provides breaks lasting less than 20 minutes of uninterrupted time, they can be unpaid breaks.
Mineral*: Alaska Meal and Rest Periods
Lactation Accommodation Laws
In Alaska, nursing employees have the right to breastfeed or express milk anywhere they are otherwise authorized to be pursuant to Alaska law. Further, employers with 50 or more employees (or less than 50 where it would not cause undue hardship to comply) must comply with the federal FLSA requirement to give reasonable break times for employees to pump breast milk for up to 1-year after the birth of a child. Breaks should be given as often as necessary, and in a private space that's not a bathroom.
Alaska Department of Health: Workplace Breastfeeding Policies
Leave
Alaska Family Leave Act
The Alaska Family Leave Act (AFLA) provides a job-protected absence for up to 18 weeks in a 24-month period to eligible employees for a qualifying serious medical condition. The AFLA also provides a job-protected absence for up to 18 weeks in a 12-month period to eligible employees for pregnancy, childbirth or adoption.
Employees are eligible if they have been employed by a covered employer for at least 35 hours a week for at least 6 consecutive months, or for at least 17.5 hours a week for at least 12 consecutive months immediately preceding the leave. A covered employer is defined as having at least 21 employees within 50 road miles during any period of 20 consecutive workweeks in the preceding two calendar years.
Alaska Department of Administration Personnel and Labor Relations: Family Leave
Jury Duty Leave
Employers are prohibited from penalizing an employee for attending jury duty, participating in the selection process for potential jury duty, or fulfilling duties as a juror. However, employers are not obligated to provide compensation for time taken off for jury duty.
Mineral*: Alaska Jury Duty and Court Leave
Court Witness and Crime Victim Leave
Employers may not penalize employees who have been subpoenaed or requested to testify in court to give testimony. However, they are not required to pay employees for such crime victim or witness leave.
Mineral*: Alaska Jury Duty and Court Leave
Harassment & Discrimination
In addition to protections under federal law, Alaska law prohibits discrimination by covered employers, because of an employee’s membership in any protected class, including race, color, religion, national origin, sex, pregnancy, childbirth or related medical conditions, age (40 or over), marital status, sexual orientation, gender identity, military status, or disability in places of public accommodation
Alaska State Commission for Human Rights: Human Rights Act
Mineral*: Alaska Employment Discrimination and Accommodations
Separation
Final Pay & Document Requirements
In Alaska, the final paycheck must be issued within three working days if the separation is involuntary. These three working days begin the day after the separation and do not include weekends or holidays. For a voluntary separation, employees must be paid by the next regularly scheduled payday that is at least three working days after the last day worked.
Accrued, unused vacation time need not be paid out to the employee unless the employer’s policy requires it. Employers should clearly set forth in writing any policy with respect to unused vacation or adhere to any written or oral promises as it relates to the payout of paid time off (PTO).
Alaska Department of Labor and Workforce Development (DOLWD): How to file a claim for unemployment insurance benefits
Mineral*: Alaska Separation
Alaska Department of Labor and Workforce Development (DOLWD): Wage And Hour FAQs
Business Closings and Layoffs
The Federal Worker Adjustment and Retraining Notification (WARN) Act imposes certain notices and other obligations on covered businesses before conducting large-scale business closures, layoffs, or relocations. For more information, visit the links below.
U.S. Department of Labor: Worker Adjustment and Retraining Notification (WARN) Act Advisor
Alaska Department of Labor and Workforce Development (DOLWD): WARN Information
Mineral*: Alaska Layoffs
Notes
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Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.