labor lawAdivision of labor law center

The Alaska minimum wage remains at $7.15 per hour, while the new federal minimum wage will be $7.25 per hour. This means that for the first time since the Alaska minimum wage was passed, the state rate is lower than the federal one.

 

On July 24, 2009, the federal minimum wage will increase by 70 cents from $6.55 per hour to $7.25 per hour. On that day, thirteen states will increase their minimum wage rate, too. These states, including Oklahoma, Texas, simply adopt the federal minimum as their own, so when the federal rate changes their minimum wage rates change, too.

 

As a result of these change all employers will be required to update their labor law posters. Businesses can obtain updated posters from www.laborlawcenter.com.

 

The higher federal minimum wage will affect some but not all employers in Alaska. When an employee is covered by both federal and state law, the employee is entitled to protection under whichever law confers the greatest benefit.

 

Employers with more than $500,000 in revenue or those who engage in interstate commerce are covered by the federal minimum wage law. Effective July 24, 2009 those Alaska employers must begin paying the federal minimum wage of $7.25 per hour.

 

An Alaska employer engages in interstate commerce when she buys from vendors outside the state, or sells to customers outside the state. Businesses that use email or the internet, have a website, or accept credit cards are also engaging in interstate commerce.

 

Even if the enterprise as a whole does not engage in interstate commerce, some employees might. For example, a receptionist who accepts long-distance calls from out of state would be entitled to the federal minimum wage.

 

This means an employer could conceivably have employees who are covered under the Alaska minimum wage and other employees who are entitled to the higher federal minimum wage.

 

 

 

 

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