Alaska Ballot Measure 1: Draft Regulations Released for Public Comment

What happened?

On June 25, 2025, the Alaska Department of Labor & Workforce Development published proposed regulations interpreting Ballot Measure 1, a voter-approved initiative from the 2024 General Election. The measure introduces significant changes to labor standards in Alaska.

Overview:

• Employers must begin implementing Ballot Measure 1 without finalized rules, and the requirements may change once they are finalized.

• Employers should use the proposed regulations as preliminary guidance only and stay alert for updates.

Summary of the Key Provisions:

1. Minimum Wage Increases

• $13.00/hour on July 1, 2025
• $14.00/hour on July 1, 2026
• $15.00/hour on July 1, 2027
• Annual CPI-based adjustments begin January 1, 2028
  

2. Mandatory Paid Sick Leave

• Applies to personal/family illness, medical care, and issues related to domestic violence or assault.
• Required for projects bid after July 1, 2025
  

3. Ban on Mandatory Political/Religious Meetings

• Employers may not require attendance at meetings promoting political or religious views.

Paid Sick Leave Regulations

• Accrual: 1 hour per 30 hours worked
• Caps: 40 hours/year (fewer than 15 employees), 56 hours/year (15+ employees)
• Carryover: Required unless leave is frontloaded
• Frontloading: Allowed if prorated and trued-up based on actual hours worked
• Cash-Out Option: Permitted with written employee consent and policy.

Use of Existing PTO Policies

• Employers may use existing PTO policies if:
  • Leave meets or exceeds legal requirements.
  • Leave can be used for the same purposes.
  • Employees are notified in writing.
• Employers may create a “sub-bank” of protected hours within a larger PTO balance.

Notice & Verification

• Foreseeable absences: Up to 10 days’ notice if policy allows.
• Unforeseeable absences: Notify employer ASAP.
• 4+ consecutive days: Reasonable documentation may be required if policy is in place.
• Employers may delay payment until documentation is received.

Shift Calculations & Pay Rate

• Employers may use reasonable methods to calculate hours for variable shifts.
• Sick leave must be paid at the regular rate or minimum wage, whichever is higher.
• Regular rate includes commissions, bonuses, and shift differentials.

Employer Notice Requirements

• Deadline: July 31, 2025, and for all new hires
• Required content:
  • Sick leave entitlement and accrual rate
  • Permitted uses.
  • Use of PTO policy (if applicable)
  • Notice/verification requirements.
  • Anti-retaliation statement
• Delivery methods: In person, mail, email, paycheck, handbook, or workplace posting.
• Recommendation: Use individual distribution to ensure compliance

Paystub Reporting

• Proposed rules would require paystubs to show: Sick leave accrued, used, and current balance.
• Applies to written and electronic paystubs.
• This is important for employers who use PTO sub banks (e.g., separate banks for vacation, sick, or personal leave).

Source References

• Alaska DOL – Wage And Hour – Proposed sick leave regulations
• Alaska Department of Labor – Proposed Sick Leave Regulations – Review or Submit Comments
• Alaska Department of Labor – Ballot Measure 1 FAQs

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