Under Alaska's overtime law, an employee is entitled to overtime compensation for hours worked in excess of 8 hours a day or 40 hours in a workweek. In determining whether an employee has worked more than 40 hours a week, the number of hours worked must be counted without including hours that are worked in excess of 8 hours in a day, because the employee has or will be separately awarded overtime compensation based on those hours (AK Stat. Sec. 23.10.060). Alaska does not require that overtime be paid on weekends or holidays (although union contracts often require overtime pay for such work). All employers with four or more employees must abide by Alaska's wage and hour laws, unless they are in an exempt industry. An employer may order an employee to work overtime in most cases and may discipline or terminate an employee who refuses to work overtime.
Because the federal Fair Labor Standards Act (FLSA) applies to virtually all enterprises involved in interstate commerce, most Alaska employers are covered by the federal law. Employers that are covered by both state and federal law must comply with the law that sets the higher standard of protection for employees.
Note: The federal Department of Labor’s (DOL) final overtime regulations, effective December 1, 2016, have increased the salary level for exemption, will automatically update the salary threshold every 3 years going forward, and have allowed for the inclusion of nondiscretionary bonuses, incentive payments, and commissions toward as much as 10 percent of the salary threshold.