As an employer, you are aware that you may find yourself involved in wage and hour disputes with employees. They may claim they are not being paid fairly or that their rights have been violated.
This can result in significant litigation, and there is the potential that it could harm your company’s reputation. It is important to take proactive steps to avoid some of these common disputes.
Setting up legal tip pools
For example, tip pooling is legal in Alaska and is often used in the bar and restaurant industry. Employees who earn tips put them into a general pool, which is then divided evenly at the end of the night. Business owners sometimes like to use this setup because it means that the waitstaff can help any customer at any time.
If you do this, be sure that business owners, executives, managers and supervisors do not take any percentage of the tips from the pool. They cannot legally be included. As long as you structure the tip pool correctly from the beginning, you should not run into any disputes with your waitstaff.
Paying state minimum wage
For employers, it is also important to know that the minimum wage in Alaska is $13 per hour. It will be rising to $14 per hour on July 1, 2026.
This is substantially higher than the federal minimum wage, which is still set at $7.25 per hour. Disputes sometimes arise from employees who claim they are being paid the federal wage, rather than the state wage. As long as you take steps to adhere to the correct regulations in your industry, you should be able to avoid these types of claims.
Addressing a dispute
These are just two examples of ways you can proactively avoid litigation and employment disputes. But if such a dispute does still arise, be sure you know what legal options you have and what steps you can take to defend your business.