Update Applicable to:	Effective Date
All Employers with Employees in Alaska	September 25, 2025

What happened?

On August 27, 2025, Vensure was notified of the filed regulations from the Alaska Department of Labor, as part of its inclusion on the agency’s interested party list.

Overview:

The following is a summary that contains the amendments and additions to Alaska Administrative Code (AAC) Title 8, Chapter 15, related to labor regulations, particularly overtime pay and paid sick leave.

Overtime Pay Regulations (8 AAC 15.100)

Regular Rate Calculation

• The regular rate is calculated weekly, regardless of payment method (salary, piece-rate, commission, etc.).
• Employers must convert non-hourly compensation to an hourly rate to determine overtime.
• Salaried employees are not exempt from overtime unless specifically exempted by law.
• A written employment contract is required for salaried employees to define:
  • Daily and weekly hours.
  • Straight time and overtime rates.

Default Assumptions: If no contract specifies hours, salary is assumed to cover 8 hours/day and 40 hours/week.

Special Pay Structures: For pieceworkers, multi-rate workers, commission-based, or bonus-receiving employees, employers must use specific federal methods (29 C.F.R. 778) to calculate regular rates.

Hours Counted for Overtime: All hours worked, including on-call and standby time, must be counted unless the employee is fully relieved for 20+ minutes.

Prohibited Overtime Practices: Contracts, comp time, and flex-time plans do not satisfy Alaska’s overtime requirements.

Daily Rate Employees

• Must also have a written contract.
• If no hours are specified, daily rate assumed to cover 8 hours/day.
• Overtime must be paid for:
  • Hours beyond 8/day.
  • Hours beyond 40/week.

• If no contract or variable hours, employers must:
  • Calculate straight time rate weekly.
  • Pay 1.5x rate for overtime.

Paid Sick Leave Regulations

Employee Count (8 AAC 15.106)

• Employers calculate Full-Time Equivalents (FTEs) by dividing total hours worked by max regular hours for a full-time employee.
• New businesses use the first 3 months of data and update quarterly.

Accrual Year (8 AAC 15.107)

• Employers must define a 52-week accrual period.
• If not defined, accrual defaults to calendar year.
• Unused sick leave carries over, unless front-loaded.

Front-Loading Sick Leave (8 AAC 15.108)

• Employers may assign a lump sum of sick leave annually.
• Must meet minimum requirements under AS 23.10.066.
• No carryover required.
• Part-time employees must receive prorated or average-based sick leave.

Paid Time Off (PTO) Policies (8 AAC 15.109)

• PTO satisfies sick leave if:
  • Accrues at ≥1 hour per 30 hours worked.
  • Can be used for authorized sick leave purposes.
• Employers may deduct PTO automatically.
• Excess PTO beyond minimum is not regulated.

Cash-Out Option (8 AAC 15.110)

• Employers may allow employees to cash out sick leave:
  • During employment or upon separation.
  • Must be voluntary and in writing.
  • Option to retain balance if returning within 6 months.

Payment of Sick Leave (8 AAC 15.111)

• Sick leave paid at regular rate or minimum wage, whichever is higher.
• For variable shifts, employers may use:
  • Replacement employee hours.
  • Employee’s 30-day average.

Advance Notice (8 AAC 15.112)

• Employers may require up to 10 days’ notice for foreseeable absences.
• Employees must notify them of changes or unforeseen absences ASAP.
• Discipline allowed for failure to follow notice policy only if policy was provided.

Verification of Absences (8 AAC 15.113)

• Employers may require documentation for absences that last more than 3 consecutive scheduled workdays.
• Cannot require details of illness or sensitive issues.
• Sick leave payment may be withheld until verification is provided.

Written Notice to Employees (8 AAC 15.114)

• Employers must notify employees of:
  • Sick leave entitlements.
  • Accrual rates.
  • Authorized uses.
  • PTO substitution.
  • Verification and retaliation policies.
• Notice can be distributed, posted, or included in handbooks.

Retaliation Prohibited (8 AAC 15.115)

• Employers may not:
  • Deny or interfere with sick leave.
  • Retaliate for inquiries, usage, or participation in investigations.
  • Use sick leave absences as grounds for adverse actions.

Definitions (8 AAC 15.119)

• “Hours worked”: Time on duty, excluding holidays, vacation, or unpaid on-call time.
• “On call”: Time when available but not actively working or compensated.
• “Separation”: End of employment by resignation, termination, or layoff.

Exemptions for Non-Profit Summer Camps (8 AAC 15.126)

• Employees of non-profit residential summer camps are exempt from minimum wage and may be exempt from sick leave under AS 23.10.069.

Sick Leave Tracking (8 AAC 15.160(h))

• Adds tracking of:
  • Sick leave used during the accrual year.
  • Sick leave balance.

Source References

• Alaska Ballot Measure 1: Draft Regulations Released for Public Comment (VensureHR)
• Alaska – Updates FAQs (September 4, 2025)
• Alaska Filed Regulations

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