Alaska Overtime Calculator: 8h Daily & Take-Home Pay
Alaska requires 1.5× overtime pay after 8 hours in a single workday or 40 hours in a workweek. Because Alaska levies 0% state income tax, your net take-home pay from overtime is among the highest in the country.
Calculate Your Alaska Overtime Paycheck
How Alaska Overtime Law Operates Under AS 23.10.060
Alaska is one of only four states in the United States with statutory daily overtime. Governed by the Alaska Wage and Hour Act (Alaska Statutes AS 23.10.060) and administered by the Alaska Department of Labor and Workforce Development (DOLWD), the state provides robust legal protections for non-exempt hourly employees.
1. The 8-Hour Daily and 40-Hour Weekly Rules
Under AS 23.10.060(b), an employer is legally required to pay an employee overtime compensation of at least 1.5× their regular rate for:
- Hours worked in excess of 8 hours in a single workday; AND
- Hours worked in excess of 40 hours in a single workweek.
Daily overtime hours already paid at 1.5× do not pyramid, but any non-overtime hours that push the weekly total past 40 hours must also be paid at the 1.5× overtime rate.
2. The Alaska 0% State Income Tax Edge
Unlike California (which levies state tax rates up to 13.3%), Alaska imposes no state personal income tax. When you work substantial overtime shifts on the North Slope, in commercial fishing plants, or in remote construction projects, you keep significantly more of your earnings. Only federal income tax withholding and federal FICA (7.65%) are deducted from your gross pay.
Looking for Federal or Sibling Overtime Rules?
Compare Alaska's daily rules against federal FLSA guidelines or check the other three states with statutory daily overtime.
Frequently Asked Questions: Alaska Overtime
Plain-English answers to common wage questions under Alaska statutes.
How does Alaska daily overtime work under AS 23.10.060?
Under the Alaska Wage and Hour Act (Alaska Statutes AS 23.10.060), employers must pay non-exempt employees overtime compensation of at least 1.5× their regular hourly rate for all hours worked in excess of 8 hours in a single workday OR in excess of 40 hours in a single workweek, whichever calculation yields the higher payout.
Does Alaska have a state income tax on overtime pay?
No. Alaska is one of the few states in the country with zero (0%) state personal income tax. When calculating your net take-home overtime pay in Alaska, the only mandatory statutory payroll deductions are federal income tax and federal FICA (7.65% for Social Security and Medicare).
What is the small employer exemption under Alaska overtime law?
Under AS 23.10.060(d)(1), an employer who employs fewer than four employees in the regular course of business is exempt from the state 8-hour daily overtime requirement. However, if those employees are engaged in interstate commerce, the federal FLSA 40-hour weekly rule still strictly applies.
How does overtime work for rotational 2-weeks-on/2-weeks-off schedules in Alaska?
Rotational shift workers (common in North Slope oil extraction, mining, and commercial seafood processing) frequently work 12-hour shifts. Under AS 23.10.060, unless an approved Voluntary Flexible Work Hour Plan or collective bargaining agreement is in place, workers on 12-hour shifts earn 4 hours of daily 1.5× overtime each shift (8 regular + 4 overtime), generating substantial overtime earnings during their active rotation.
Can an employee in Alaska agree to a 10-hour day without overtime?
Yes, under a certified 'Flexible Work Hour Plan' filed with and approved by the Alaska Department of Labor and Workforce Development (8 AAC 15.102). An employer and employee can agree in writing to work up to 10 hours per day in a 40-hour workweek without triggering daily overtime.