In Alaska, overtime must be paid at one and one-half times the employee's regular rate for hours in excess of eight daily or 40 weekly, including work performed under most flexible hour plans.
Employees not covered by the minimum wage requirement are not entitled to overtime pay. In addition, employees working for employers with less than four employees; agricultural or horticultural product packers and canners; small newspaper employees; switchboard operators; certain telegraphic or communication employees; seamen; workers in small forestry or lumbering operations; outside buyers of poultry; casual employees; hospital employees providing medical services; employees working under a state-approved or collective bargaining flexible work-hour plan; small mining employers, taxi drivers, line-haul truck drivers; community health aides; certain auto and truck mechanics; and certain airline employees under shift trading arrangements are exempt from Alaska's overtime pay requirement.
Effective September 14, 2004, the minimum salary for exempt employees in retail and service establishments who spend up to 40 percent of their time performing duties that are nonexempt is two times the state minimum wage for the first 40 hours of employment each week. The minimum salary that must be paid to satisfy the white collar exemptions for overtime payments for retail and service establishment employees is $572 per week.
Effective November 7, 2005, an individual employed in a bona fide executive, administrative, executive or professional capacity must be compensated on a salary or fee basis at a rate of not less than two times the state minimum wage for the first 40 hours of employment each week, exclusive of board or lodging that is furnished by the individual's employer, in order to be exempt from the overtime pay requirements. An exemption is added for computer systems analysts, computer programmers, software engineers, or other similarly skilled workers. The exemption from the maximum hours requirements, 40 hours a week/eight hours a day, for supervisory employees is removed.