Alaska Introduces New Employment Laws Effective July 1, 2025 - HR ALERTS

Alaska Introduces New Employment Laws Effective July 1, 2025

Effective: June 30, 2025

Alaska employers take note: Ballot Measure 1, approved November 5, 2024, brings several key employment law changes that take effect July 1, 2025. These updates apply to employers of all sizes and include new requirements for minimum wage, paid sick leave (PSL), and employee protections related to political and religious speech in the workplace.

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Minimum Wage and Exempt Salary Threshold Increases

The state minimum wage and minimum salary for exempt executive, administrative, and professional (EAP) employees will increase annually:

• July 1, 2025: $13/hour | $1,040/week

• July 1, 2026: $14/hour | $1,120/week

• July 1, 2027: $15/hour | $1,200/week

• January 1, 2028, and annually thereafter: Indexed to inflation

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Paid Sick Leave Requirements

Employers must provide PSL to eligible employees beginning July 1, 2025, or upon start of employment.

Accrual and Caps:

• Accrue 1 hour per 30 hours worked

• Employers with <15 employees: cap at 40 hours/year

• Employers with 15+ employees: cap at 56 hours/year

• Accrued but unused PSL must carry over year to year

• May be frontloaded if preferred

Use of Leave:

PSL can be used for the employee’s or a family member’s health condition (including preventive care), or for reasons related to domestic violence, sexual assault, or stalking.

Other Requirements:

• Use permitted as soon as accrued

• Smallest increment tracked by payroll system (max 1 hour)

• Documentation can be requested after 3+ consecutive days

• Unused PSL need not be paid out at termination, but must be reinstated if rehired within 6 months (if not paid out)

Employer Action Items:

• Add PSL policy to your handbook or revise your current policy

• Provide PSL notice to all current employees by August 1, 2025 and to new hires starting July 1, 2025

• Ensure PSL documentation aligns with Alaska's new law

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Captive Audience Protections

Employers will be prohibited from requiring employees to attend meetings or listen to communications primarily focused on the employer’s views on political or religious matters.

What Counts as Political or Religious Speech?

• Political: elections, legislation, political parties, civic/labor groups

• Religious: religious affiliation, practice, or membership

Exemptions:

• Legally required communication

• Job duty-related communication

• Communications from religious organizations

Employer Action Item:

Train managers and supervisors on this change and allow employees to opt out of meetings or messages that fall under this law.

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Get day-to-day updates on Alaska Introduces New Employment Laws visit the Vida HR Knowledge Center (Vida HR Clients Exclusive).