Ballot Measure 1, passed by voters in the 2025 general election, is a voter initiative that (1) increases the minimum wage, (2) establishes the Alaska Paid Sick Leave Act (“Act”) to provide a minimum paid sick leave benefit to employees and protected uses, and (3) prohibits employers from requiring employees to attend meetings or engage in communications for the primary purpose of sharing political or religious opinions. Employers must provide notice to employees of their rights under the Act no later than July 31, 2025.

Below are some of the major changes to Alaska’s minimum wage and hour law as implemented through Ballot Measure 1:

1. Minimum Wage Increase.
Ballot Measure 1 increased the Alaska hourly minimum wage to $13 on July 1, 2025, and provides for an annual increase of $1 for the following two years thereafter. As the minimum wage increases, the salaries of exempt employees must also increase. This is because under Alaska Statute 23.10.055, the salary of an exempt employee must be at least twice the minimum wage rate based on a 40-hour work week. The minimum wage and minimum salary level for exempt employees (“EE”) will increase as follows:

Beginning January 1, 2028, the minimum wage will be adjusted annually for inflation based on the Consumer Price Index (CPI).

2. Alaska Paid Sick Leave Act.

Ballot Measure 1 also provides for a statewide paid sick leave benefit for Alaska employees. The Act requires all employers in Alaska to provide paid sick leave to their employees, regardless of whether the employee’s role is full-time or part-time. However, employers are not required to provide paid sick leave for the following types of employees:

• • Minors under 18 years of age who work less than 30 hours per week;
  • Apprentices receiving a minimum wage exemption approved by the Commissioner of the Department;
  • Student learners on a plan approved by the Commissioner of the Department;
  • Seasonal employees of a non-profit residential summer camp;
  • Work therapy patients at a residential drug abuse or alcoholism treatment program;
  • Employed prisoners;
  • Employees covered by a collective bargaining agreement that expressly waives the right to sick leave in clear and unambiguous terms; and
  • Those exempt from minimum wage and overtime under AS 23.10.055(a)(1) to (a)(8) and AS 23.10.055(a)(10) to (a)(18), which includes employees working in agriculture, aquaculture, domestic service, and federal and state employees.

(a) Paid Sick Leave Accrual Rates.

Employers must provide all non-exempt (eligible for overtime) employees one hour of paid sick leave for every 30 hours worked, regardless of whether such hours are worked sporadically, paid at different rates, or are overtime hours. For exempt (salaried) employees, they will accrue 1.25 hours each week, unless their normal work week is less than 40 hours, in which case they will accrue based on those hours at the same rate as non-exempt employees.

(b) Yearly Minimums and Existing PTO Policies.

Employers with 14 employees or less can cap the yearly accrual of paid sick leave to 40 hours/year per employee. Employers with 15 or more employees can cap the yearly accrual of paid sick leave to 56 hours/year per employee.
Employers with existing policies that offer PTO/paid sick leave accruing at a rate equal to or exceeding 1 hour per 30 hours worked do not need to offer any additional paid sick leave. Employers may need to modify their policies to ensure employees are allowed to use their paid sick leave/PTO in accordance with Ballot Measure 1 (see 5 below). If the employer’s paid sick leave/PTO policy is in accordance with the law, and an employee uses all of their PTO/paid sick leave for a vacation, they do not get additional paid sick leave if they later fall ill.

(c) Protected Uses of Paid Sick Leave.

If an employee requests to use accrued sick leave for a qualified purpose, as defined by Ballot Measure 1, employers cannot deny such a request, require the employee to find coverage, or take any retaliatory action against the employee for using the paid sick leave.

The following is a non-exhaustive list of qualified purposes for use of paid sick leave under Ballot Measure:

1. 1. injury,
   2. illness,
   3. to care for a family member due to injury or illness, or
   4. when necessary to receive care, victim’s aid, or legal help related to domestic violence, sexual assault, or stalking.

(d) Restrictions on Requiring Documentation.

When an employee uses paid sick leave for a qualified purpose, employers are prohibited from requiring the employee to provide documentation or proof of the reason for which they used the sick leave unless the employee is absent for more than three consecutive workdays. On the fourth consecutive workday absence, employers may require proof from the employee for the stated reason for the employee’s absence. But employers must accept a signed note from a health care professional indicating that the sick leave is/was necessary, and the employer cannot require the employee to share the nature or detail of the illness or underlying health needs (for illness related absences).

(e) No Requirement to Pay Out Unused Paid Sick Leave; Carryover Required.

Employers do not have to pay out an employee’s unused sick leave upon the termination of their employment. But if an employee separates from a company with unused sick leave and is rehired within 6 months of the separation day by the same employer, the employer must reinstate the unused sick leave hours of that employee.

However, employers must allow unused sick leave to carry over to the next year. So, if an employer has a policy allowing for the employee to be paid out for unused PTO/sick leave at the end of each year, the employee must be given the option to either take the pay out or have those hours to carry over to the next year.

(f) No Retaliation

Under AS 23.10.067(e), employers cannot:

1) retaliate against employees in any way for use of paid sick leave;
2) require the employee to find coverage in order to use paid sick leave;
3) count employee’s use of paid sick leave as an absence that may lead to or result in retaliation or any other adverse action.

In addition, the new rules create a right of action for the employee to bring a claim against the employer for violation of the Act to recover the employee’s lost wages and potential damages.

An employer is not required to pay employees for unused accrued paid sick leave after the employer-employee relationship is terminated, unless the employer has an active policy in place allowing for such pay out upon separation from employment.

3. Prohibition on Mandatory Meetings about Religious or Political Issues: AS 23.10.490

Employers are prohibited from making their employees attend meetings or engage in communications about religious or political issues. Employers will be considered to be in violation of this law if they take any adverse employment action against an employee for refusing to attend such meetings/communications, and will be liable to the employee for any lost wages resulting from the adverse employment action taken, including wages the employee would have earned by attending the meeting.

The statutory language of Ballot Measure 1 leaves open for interpretation many questions regarding the practical implication of Ballot Measure 1 for employers and employees alike.

In a FAQ published by the Alaska Department of Labor and Workforce Development (“DOL”) on March 12, 2025, the DOL indicated it will also publish draft regulations relating to Ballot Measure 1 sometime in the spring of 2025. However, no such regulations have been published for notice and comment and employers should not expect to see those anytime soon as, on May 9, 2025, Governor Dunleavy issued Administrative Order No. 358 freezing the promulgation of new regulations by all agencies in the state.

This article summarizes aspects of the law. This article does not constitute legal advice. For legal advice for your situation, you should contact an attorney.