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Tips Must Be Paid to Employees A tip is a voluntary sum of money that a customer freely gives to an employee for services. Under state law: Employers must pay all tips to employees. The employer may not take tips for company use, or to pay employee wages.
Yes, but there are a few exceptions. If you work more than 8 hours in a single day and/or more than 40 hours in a single week, you must be paid time-and-one-half (1.5 times) your hourly or regular wage for those extra hours that you worked. Contact Wage and Hour office ((907) 269-4900) if you have questions.
The Alaska Wage and Hour Act requires employers to pay nonexempt employees overtime for all hours worked in excess of 40 hours in a workweek and in excess of eight hours in a workday. However, an employer is not required to pay both daily overtime and weekly overtime for the same hours worked.
Alaska remains an at-will-employment state. This means, absent a contract to the contrary, and unless the employee can successfully assert a common law or statutory claim (such as under a discrimination or retaliation statute), an employer is free to terminate an employee's employment for any reason or no reason.
The minimum wage in Alaska increased to $10.85 on January 1, 2023. Notably, Alaska does not allow a tip credit against the state's minimum wage. In contrast, many states allow employers to pay tipped employees a lower cash wage.
However, Alaska is one of the handful of states that does not allow a tip credit. Employers must pay the full state minimum wage, regardless of how much the employee makes in tips.
Eight states?Alaska, California, Hawaii, Montana, Minnesota, Nevada, Oregon, and Washington?have eliminated the tipped wage entirely, while 16 use the federal tipped minimum wage of $2.13 per hour, and another 26 states and the District of Columbia have set the tipped minimum wage higher than $2.13 but below the ...
Tip Pooling (In other words, if the employer takes a tip credit, the employer can count only the tips the employee gets to take home against its minimum wage obligation.) Under federal law, if the employer claims a tip credit, then only employees who regularly receive tips can be part of the tip pool.