Nobody ever said running a business was a walk in the park. As an employer, you have a lot of balls in the air, and compliance is just one of them. One really, really important one that, if dropped, could cost you a whole lot of money.
In addition to federal regulations, each state has their 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 laws, and offering guidance to help you keep up.
Bear in mind, 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 your behalf, you’ll need to provide us with some key pieces of information prior to joining our platform. Here are the steps to do that.
Alaska has minimum wage requirements in excess of the federal minimum wage. Alaska employers can find the most up-to date minimum wage and overtime information at the Alaska Department of Labor.
Division of Labor Standards and Safety: Minimum wage and overtime information
Alaska Exempt Salary Threshold
Exempt employees 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 $9.89 per hour, an exempt employee must be paid at least $791.20 per week ( $9.89 x 2= $19.78 x 40 hours), or $41,142.40 annually.
Alaska Overtime Rules
Alaska law requires employers pay employees at the overtime rate, unless otherwise exempt, when they work more than eight hours in a workday 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. If an employee is paid overtime pay for working more than 8 hours in a workday, those hours do not need to be counted again when determining whether an employee has worked more than 40 hours for the week because those hours have already been counted and paid as overtime. Employers with less than 4 employees are not subject to the Alaska state overtime laws.
Alaska Department of Labor and Workforce Development:
The Alaska Family Leave Act (AFLA)
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: AFLA Rights
In Alaska, the final paycheck must be issued within three working days if the termination is involuntary. These three working days begin the day after the termination, and do not include weekends or holidays. For a voluntary termination, employees must be paid by the next regularly scheduled payday.
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.