How do you calculate overtime pay in Alaska?

Calculating overtime in Alaska is different from many other states due to its unique wage laws. In addition to federal overtime rules, Alaska has its own regulations that require overtime pay for both weekly and daily overtime.

This guide will walk you through the key rules, including when overtime applies, how to calculate it, and any exceptions you should know.

This Article Covers:

Understanding Overtime in Alaska
Overtime for Hourly Rate, Two or More Hourly Rates, and Salaried Employees in Alaska
Overtime for Complex Pay Structures in Alaska
Additional Considerations for Alaska Overtime

Understanding Overtime in Alaska

Which Overtime Laws Apply in Alaska?

Alaska follows its own set overtime laws under the Alaska Wage and Hour Act (AWHA). This law states that most employees must be paid 1.5 times their regular pay for any hours worked over 40 in a week or over 8 in a day.

Certain provisions from the Fair Labor Standards Act (FLSA) are also followed by the state, including the criteria for determining overtime pay eligibility.

What is the Regular Rate of Pay in Alaska?

In Alaska, the “regular rate” of pay is the hourly wage an employee earns for their normal, non-overtime workweek.

This rate isn’t just what the employer and employee agree on—it’s based on actual earnings. It includes all payments for work, such as hourly wages, salaries, commissions, and certain bonuses, unless specifically excluded by law.

If an employee is paid a salary, piece rate, or commission, their regular hourly rate is calculated by dividing their total earnings for the week by the total hours worked. This rate is then used to determine overtime pay.

How Do You Define a Workweek in Alaska?

A workweek is a fixed period of 168 hours, or seven straight days, that repeats regularly. It doesn’t have to follow the calendar week and can start on any day or time.

Employers can set one workweek for all employees or different workweeks for different groups. Once set, the workweek stays the same, no matter how many hours an employee works.

However, it can be changed if the change is permanent and not meant to avoid overtime rules.

How Much is Overtime Pay in Alaska?

California’s overtime laws stipulate that employees must receive overtime pay for hours worked over eight in a day and 40 in a workweek. Specifically:

  • Daily Overtime: Employees earn 1.5 times their standard rate for hours worked between eight and twelve in a single day.
  • Weekly Overtime: Employees earn 1.5 times their standard rate for hours worked beyond 40 in a week.

When calculating overtime, employers must include all hours worked, including on-call hours and waiting time. However, breaks longer than 20 minutes that an employee uses for personal time do not count toward overtime.

If you want to learn more, check out our guide on Alaska overtime laws.

Who is Eligible for Overtime Pay in Alaska?

Employees in Alaska qualify for overtime pay if they work more than 8 hours in a day or 40 hours in a week. Those who work on a flexible work-hour plan may also qualify for overtime after working more than 10 hours in a single day.

Check out our guide on overtime rights in Alaska.

Who is Exempt from Overtime Pay in Alaska?

Under the Alaska Wage and Hour Act, certain workers are not entitled to minimum wage or overtime pay. These include:

  • Student learners (with departmental approval)
  • Agricultural workers
  • Workers involved in fishing and shrimp picking
  • Domestic workers (including babysitters in private homes)
  • Government employees (federal, state, or local)
  • Nonprofit volunteers (religious, charitable, educational, or cemetery organizations)
  • Newspaper delivery workers
  • Watchmen or caretakers (at inactive properties for 4+ months)
  • Executive, professional, administrative employees, and commissioned salespeople (as defined by the FLSA)
  • Mineral prospectors
  • Part-time workers under 18 (working ≤30 hours per week)
  • Live-in staff at nonprofit child care/education facilities (earning under $10,000/year for individuals or $15,000/year for couples)
  • Independent cab drivers (who set their hours and rates)
  • Licensed guides (for the first 60 days of employment each year)
  • IT professionals (such as programmers and software engineers)
  • Emergency service and ski patrol volunteers
  • University of Alaska practicum students

Motor vehicle dealership employees (handling service, financing, or vehicle sales). These exemptions are based on job duties and employment conditions.

Can Employers Mandate Overtime Work in Alaska?

Employers can require overtime as long as they follow FLSA rules, which include paying 1.5 times the regular wage for hours over 40 in a week or 8 hours in a day, ensuring a safe work environment, and not violating any contracts (such as union agreements).

However, while legal, excessive overtime can negatively affect employee morale, retention, and workplace safety.

Overtime for Hourly Rate, Two or More Hourly Rates, and Salaried Employees in Alaska

How Do You Calculate Overtime for Hourly Employees in Alaska?

Calculating overtime for hourly employees in Alaska is fairly straightforward. The steps are outlined below:

    1. Determine the regular rate of pay

    If an employee earns $12.00 per hour, that would be their regular rate of pay.

      2. Calculate the overtime rate

      Multiply the regular pay rate by 1.5. The employee’s overtime rate would be $18 ($12 x 1.5).

        3. Identify overtime hours

        Employee worked 47 hours in a week, therefore their overtime hours are seven (47 – 40).

        4. Calculate overtime pay

        Multiply the overtime hours by the overtime rate. From the example, the overtime pay would be $126 (7 hours x $18).

        The regular rate can change if the employee gets extra compensation or incentives during the week.

        To learn more, you can read our guide on your rights as an hourly employee in Alaska.

        How Do You Calculate Overtime for Employees with Two or More Hourly Rates in Alaska?

        If an employee works different jobs in the same week with different pay rates, their regular hourly rate is calculated as a weighted average.

        This means their total earnings from all jobs are added together and then divided by the total hours worked to get their regular rate.

        For an employee who worked 47 hours in a week and earned a total of $846, calculation for their overtime pay will be as follows:

        1. Determine the regular rate of pay

        Divide weekly earnings by the total hours worked. ($846/47 = $18).

          2. Calculate the overtime rate

          Multiply the regular pay rate by 1.5 to get the overtime rate. Here, the regular rate is $18, the overtime rate would then be $27 ($18 x 1.5).

            3. Identify overtime hours

            The employee worked 47 hours, overtime hours would be seven (47 – 40).

            4. Calculate overtime pay

            Multiply the overtime rate by the overtime hours. In this example, the overtime pay would be $189 ($27 x 7).

            How Do You Calculate Overtime for Salaried Employees in Alaska?

            If an employee is paid a weekly salary, their regular hourly rate is found by dividing the salary by the hours it covers.

            For example, a $350 weekly salary for a 35-hour workweek equals $10 per hour. If they work overtime, they receive $10 per hour for the first 40 hours and $15 per hour (1.5 times the regular rate) for overtime. A $375 salary for a 40-hour week results in a $9.38 hourly rate.

            For salaries covering longer periods, they must be converted to a weekly equivalent.

            A monthly salary is multiplied by 12 and divided by 52, while a semimonthly salary is multiplied by 24 and divided by 52.

            For instance, a $1,560 monthly salary or a $780 semimonthly salary for a 40-hour workweek equals $9 per hour. Employers may also calculate rates based on working days, as long as the rate meets minimum wage laws.

            For more details, check out our guide on your rights as a salaried employee in Alaska.

            Overtime for Complex Pay Structures in Alaska

            How Do You Calculate Overtime Pay for Piece Rate Employees in Alaska?

            For employees paid by piece rate, the regular hourly rate is calculated by adding total earnings from piecework, bonuses, and paid waiting time, then dividing by total hours worked in the week.

            For overtime, employees receive their regular weekly earnings plus an extra half of their regular hourly rate for any hours over 40.

            Here are steps you can follow:

            1. Determine the regular rate of pay

            If an employee works 50 hours, earns $491 from piecework for 46 hours, and receives $8 per hour for 4 hours of waiting time, their total earnings are $523. Dividing by 50 hours gives a regular hourly rate of $10.46.

              2. Calculate the overtime rate

              Multiply the regular pay rate by 0.5 to get the overtime rate. If the regular pay is $10.46, the overtime rate would be $5.23 per hour ($10.46 x 0.5).

                3. Identify overtime hours

                If the employee worked 50 hours, the overtime hours would be ten (50 – 40).

                4. Calculate overtime pay

                For 10 overtime hours, the employee will receive an additional $5.23 per hour, totaling $52.30.

                Additional Considerations for Alaska Overtime

                Can an Employee Choose Compensatory Time Instead of Overtime in Alaska?

                As per the Alaska Department of Labor and Workforce Development, employers in Alaska cannot give comp time instead of paying overtime wages. If you work overtime hours, you are legally entitled to overtime pay, which must be included in your paycheck and listed on your paystub.

                Are Paid Sick Leave and Time Off Included in Overtime Calculation?

                No, paid sick leave and other time off do not count toward overtime calculations. Overtime is based only on actual hours worked, not paid time off like sick leave, holidays, or vacation days.

                For example, if you take a paid sick day but work only 38 hours that week, you wouldn’t qualify for overtime, since overtime is calculated based on worked hours, not compensated hours.

                Important Cautionary Note

                This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.