How do you calculate overtime pay 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.

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.

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.

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.

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.

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.

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.

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

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.

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:

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.

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:

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.