The minimum wage for Alaska will be increased by $11.73 per hour next year, in accordance with the terms of a ballot initiative for 2014. The law, which was approved by the voters, is in an effort to keep pace with inflation, requires that Alaska’s minimum wages increase every year at the same amount as the price of consumer goods in the Anchorage region.
However, Dan Robinson, who leads the department’s labor research division in Alaska believes there are only a handful of Alaskans that are earning minimum wage. For instance, a McDonalds in Juneau is an example. It is advertising a start salary of $18 dollars per hour, Robinson says.
“Market forces,” as significant as they may be with the labour shortage have surely had more of an influence on the amount people make that the cost of living been in recent times,” Robinson said. “Or could they with this rise which will be coming at the beginning of 2024.”
Robinson stated that, with the exception of only a few states, the majority of the nation hasn’t been employing minimum wage in an effort to keep pace with the rising costs of living over the past few years.
“It’s sort of morphed into more or less it’s been a less important to everything,” Robinson said. “Because it’s not been able to keep up with the rate of the rate of inflation across all states. And that could be the case for Alaska in the long run too.”
A separate law in the state that dictates the minimum salary for salaried workers is likely to be an issue for a lot of Alaska employees. Jeremy Applegate works in the department of department of Wage and Hour department, and he stated that, except for government employees If salaried workers are not eligible for overtime pay typically, they must earn at least twice the minimum wage.
Applegate stated that his team was determined to include minimum wages in the wage hike announcement this year, to better inform employers.
“Because it’s a huge method by which people could easily breach that,” Applegate said.
The minimum annual wage for workers exempt from tax is increasing from $45,136 in the current year to close to $48,796.80 in 2024. Applegate said that anyone who has questions or concerns regarding Alaska’s wage regulations can reach directly the Office of Wage and Hour.
