Minimum Wage
Written in plain language for general understanding. This is educational content, not legal advice. Based on federal statutes and official sources.
What is this right?
The federal minimum wage is $7.25 per hour. Your employer must pay you at least this amount for every hour you work. Many states and cities have higher minimum wages — you're entitled to whichever is higher.
Tipped employees have a lower federal minimum ($2.13/hr), but your tips plus wages must equal at least $7.25/hr. If they don't, your employer must make up the difference.
When does it apply?
This right applies when:
- You work for an employer covered by the FLSA
- You are at least 20 years old (workers under 20 can be paid $4.25/hr for the first 90 days)
- You are not a full-time student or student learner on a special certificate
Common misconceptions:
- "My state's minimum wage is the only one that matters" — You get whichever is higher: federal, state, or local.
- "Undocumented workers don't have minimum wage rights" — Wrong. The FLSA covers all workers regardless of immigration status.
- "Independent contractors don't get minimum wage" — True, but many workers are misclassified as contractors when they should be employees.
What should you do?
Step 1: Know your rate. Check your state and city minimum wage — it's often higher than the $7.25 federal rate.
Step 2: Calculate your actual hourly pay. Divide your total weekly pay by total hours worked. If it's below the minimum, you have a claim.
Step 3: Document everything. Save pay stubs, schedules, and any records of hours worked.
Step 4: File a complaint. Contact the DOL Wage and Hour Division or your state's labor department. Many employment attorneys handle wage cases on contingency.
What should you NOT do?
Don't accept illegal deductions. Your employer cannot deduct for cash register shortages, breakage, or uniforms if it would bring your pay below minimum wage.
Don't ignore tip credit violations. If you're a tipped employee and your tips + base pay don't reach $7.25/hr, your employer must pay the difference.
Don't sign away your rights. Any agreement to work for less than minimum wage is unenforceable under federal law.
How Alaska differs from federal law
Alaska has a minimum wage higher than the federal level, with scheduled increases under Ballot Measure 1 (approved November 2024):
- $14.00/hr effective July 1, 2026, rising to $15.00/hr on July 1, 2027. Beginning January 1, 2028, the rate adjusts annually based on CPI for the Anchorage metropolitan area.
- Alaska does not allow a tip credit — tipped employees must be paid the full state minimum wage
- There is no separate youth or training wage in Alaska
- Ballot Measure 1 (2024) also established mandatory paid sick leave for Alaska workers
- No local jurisdictions have enacted higher minimums
Additional Steps in Alaska
File wage complaints with the Alaska Department of Labor, Wage and Hour at (907) 269-4900 or labor.alaska.gov.
Relevant Law: Alaska Stat. § 23.10.065 (minimum wage). 2024 Ballot Measure 1 (wage increases and paid sick leave).
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