Minimum Wage And Paid Sick Leave Frequently Asked Questions

All employers in Alaska are required to provide paid sick leave to all employees, except for certain employees exempted by statute from the requirements.

The following individuals are exempt from the requirement for paid sick leave:

• Minors under 18 years of age who work less than 30 hours per week. If the minor works more than 30 hours in a week, they must earn sick leave for all hours worked that week.
• Student learners on a plan approved by the Commissioner of the Department,
• Seasonal employees of a non-profit residential summer camp,
• Work therapy patients at a residential drug abuse or alcoholism treatment program,
• Employed prisoners,
• Employees covered by a collective bargaining agreement that expressly waives the right to sick leave in clear and unambiguous terms,
• Those exempt from minimum wage and overtime under AS 23.10.055, which includes employees in agriculture, aquaculture, domestic service, and federal and state employees. Salary-exempt employees under AS 23.10.055(a)(9) are subject to paid sick leave.

Yes, part-time employees must be provided with paid sick leave.

Sick leave is accrued at the minimum rate of one hour of sick leave for every 30 hours of work, no matter how those hours are scheduled or paid, including regular time, overtime, or different pay rates. This rule applies to all employees, even those on rotating or non-traditional schedules

Employers with fewer than 15 employees (FTE’s) must allow workers to accrue and use up to 40 hours of paid sick leave per year. Employers with 15 or more employees (FTE’s) must allow up to 56 hours per year. Unused sick leave carries over into the next year, and employees continue to accrue leave up to the annual cap. While employees can only use or accrue up to 40 or 56 hours per year (depending on employer size), their total balance may exceed these limits due to rollover. However, if an employer front-loads the full annual amount of sick leave at the start of the year, they are not required to carry over unused leave into the next year.

Employers must use a Full Time Equivalent (FTE) calculation for the previous calendar year to determine employer size. Add all hours worked by all employees during the calendar year and divide this sum by the number of hours a full-time employee would work during the calendar year.

All hours worked by part-time, full-time, or seasonal employees must be included in the FTE calculation.

Salary-exempt employees accrue sick leave based on a 40-hour workweek, unless their normal workweek is less than 40 hours, in which case sick leave accrual will be based on that normal workweek.

Only actual hours worked are counted for sick leave accrual and do not include holidays, vacations, time spent not working, or other non-working hours.

Sick leave is paid leave that is allowed to be used for injury, illness, to care for a family member, or when necessary to receive care or legal help related to domestic violence, sexual assault, or stalking.

Employees have the right to use paid sick leave and cannot be penalized for doing so. Employers may not deny sick leave or require employees to find someone to cover their shift. Sick leave must be paid at the employee’s regular rate and covers the time missed due to illness or injury. However, if the leave is for a scheduled medical appointment or other foreseeable absence, employers may have a sick leave policy that requires reasonable advance notice. If an employee fails to follow the employer’s established sick leave policy, the employer may deny the leave or take disciplinary action.

Employers cannot require proof of illness unless an employee uses more than three consecutive workdays of paid sick leave. If proof is requested, a simple note from a health care provider stating that the leave was necessary is enough. Employers are not allowed to ask for details about the illness or the employee’s medical condition

The new law does not necessarily require that employers provide additional paid sick leave if their current paid time off (PTO) program meets the minimum accrual requirements for paid sick leave and the employee is allowed to use that time for absences due to sickness or injury. In the same way that employers are free to pay an employee over minimum wage, they are free to offer a more generous leave program as long as it exceeds the requirements of statutorily required paid sick leave. Employers should review existing plans for compliance with the new law, particularly regarding leave request procedures.

If an employee with a combined PTO/sick leave plan uses their entire leave balance for a vacation and later falls ill, they are not entitled to any additional paid leave. If they accrue at least one hour of leave per 30 hours worked and have the option to use it as paid sick leave, the employer has satisfied the requirements of the law.

To not provide additional paid sick leave, employers must have a PTO policy that meets the minimum usage and accrual standards of AS 23.10.066 and notify employees that their PTO plan will be used to meet the requirements of the paid sick leave law.

The recordkeeping requirements of 8 AAC 15.160(h) mandate that the sick leave used in the accrual year and the sick leave balance be included in statements of earnings and deductions. In instances where an employer combines sick leave with another paid leave program, the employer has satisfied the requirement if the statement of earnings shows the paid leave used in the accrual year and the leave balance.

Employers are not required to pay out accrued sick leave at the end of employment.

Employers can have a policy that allows employees to request a "cash out" of accrued PTO/sick leave at the end of employment or the end of the leave year. However, employers cannot mandate payout of sick leave accrual. Employers must allow sick leave to roll over year to year for active employees, unless they front-load leave, and allow for reinstatement of unused sick leave for terminated employees if cash out was not requested.

If an employee accepts a voluntary cash-out of paid sick leave upon termination of employment, they have received the benefit as required by law. No sick leave must be reinstated if they are rehired within 6 months.

Employers that front-load the annual reoccurring lump sum of sick leave each year are not required to carry forward any unused sick leave to the following year.

Paid sick leave must be paid at the employee’s regular rate of pay. This rate is calculated in accordance with federal rules under 29 CFR Part 778, which Alaska has adopted by reference. Compensation methods specifically addressed are pieceworkers, employees paid at multiple hourly rates, employees paid in wages other than cash, and employees who receive a commission.

Employees should be paid their regular hourly rate for all scheduled hours not worked for a qualifying absence.

Upon hire, employers are required to notify their employees in writing of their entitlement to paid sick leave, the amount of sick leave, the terms of use under statute, and that retaliation is prohibited.

Transmission of the written notice through a handbook or manual is allowed. Accrual rates that are displayed as a table instead of a fixed number would satisfy the requirement if they meet the accrual requirements of AS 23.10.066.