Alaska Employment Law

“Flextime” refers to employment agreements that relax the employer’s duty to pay overtime.  In Alaska, both state and federal law provide an opportunity for flextime, but the opportunity, in practice, is quite limited.  The employers with the most flexibility are very small employers, on the one hand, and unionized employers with agreements permitting flextime, on the other hand.

An Alaska employer subject to both the state law (4 or more employees, or the equivalent) or federal law (in general, annual revenues of at least $500,000) must comply with both laws.  Federal law (the Fair Labor Standards Act) permits an employer to pay straight pay to its unionized employees for up to 12 hours per day or 56 hours per week if

a) a union agreement permits such;

b) the NLRB has investigated and approved the scheme; and

c) each covered employee works i) no more than 1040 hours during 26 consecutive weeks (average of 40/week), or ii) no more than 2,240 hours during 52 consecutive weeks and is guaranteed at least 1,840 paid hours.

29 USC § 207(b)(1), (2). 

Under the Alaska Wage and Hour Act, a unionized employer may pay straight pay to its union employees (i.e., may avoid overtime pay) for all hours if the union agreement expressly permits such.  Alaska Statute 23.10.060(d)(13).   If the employees are not represented by a union, the employer may avoid paying overtime for hours over 8/day or 40/week only if

a) the employer and each individual employee voluntarily agree to such;

b) the state Department of Labor has agreed to such; and

c) the employer pays overtime for hours in excess of 10/day or 40/week.

Alaska Statute 23.10.060(d)(14); 8 AAC 15.102.

Thus, any Alaska employer who employs 4 or more employees (or the equivalent) and has annual revenues in excess of $500,000 is subject to both federal and state law, and

a) must always pay overtime to non-union employees for hours greater than 10/day or 40/week; the employer may avoid paying overtime to non-union employees for hours greater than 8/day (but no more than 10/day or 40/week) only if the individual employee has voluntarily signed a flextime agreement that the state DOL has approved;

b) must always pay overtime to union employees for hours greater than 12/day or 56/week;

c) may pay straight time to union employees for more than 40 hours but fewer than 56/week, only if the union agreement permits such, the NLRB has approved it, the individual employee does not exceed a 26- or 52-week cap, and (for the 52-week cap) the employer guarantees the employee substantial paid hours (about 4/5 full-time). [Editted 08/21/07]

Special rules govern public employees engaged in fire protection or law enforcement.

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