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Is overtime pay mandatory for Alaska workers?

On Behalf of | Mar 11, 2024 | Employment Law

For employers and employees alike, issues regarding overtime are common. One question that often comes up involves whether an employee is entitled to overtime pay. The answer is not always straightforward.

Mandatory overtime pay

In Alaska, overtime pay is mandatory for most employees. According to state law, if an employee works more than 8 hours in a single day or more than 40 hours in a single week, they are entitled to receive overtime pay at a rate of one and one-half times their regular hourly wage.

Exemptions to overtime pay

However, there are exemptions to this rule. Certain employees may not be eligible for overtime pay, including those in executive, administrative and professional roles, as these positions require specific criteria to be met. Additionally, small businesses employing four or fewer individuals may also be exempt from paying overtime.

Non-exempt employees

For non-exempt employees, overtime pay is a right that is protected by law. Employers must ensure they are compensating their workers fairly for any hours worked beyond the standard workweek.

Salaried employees and overtime

Many employers also believe that their salaried employees are not entitled to overtime pay. In reality, being paid a salary does not automatically exempt an employee from receiving overtime compensation.

At the heart of every employment relationship is pay. Understanding the nuances of overtime pay is crucial for both employers and employees in Alaska. Employers must be aware of the legal requirements to avoid potential disputes and ensure fair treatment of their workforce – and to minimize the risk of litigation.