Voters have overwhelmingly supported a new ballot measure to establish Alaska paid sick leave, set to take effect on July 1, 2025.  While the measure still awaits official certification, the results indicate a strong mandate for the law, with nearly 70% of precincts reporting in favor of the initiative.  This article highlights the key provisions of Alaska Ballot Measure No. 1, offering insights into how the law will affect employers and employees throughout the state.

Who is Covered by the Alaska Paid Sick Leave?

The Alaska paid sick leave applies to all employers, but there are distinctions based on the workforce size.  Employers with fewer than 15 employees will face slightly different standards than larger employers.  The law will cover most employees, but several categories of workers are exempt, including:

  • Apprentices and certain employees in the agriculture, fishing, or domestic service sectors
  • Employees working part-time (fewer than 30 hours per week) who are under 18 years old
  • Workers covered by the federal Railroad Unemployment Insurance Act

Additionally, employees who are part of a collective bargaining agreement (CBA) negotiated after July 1, 2024, may have the option to waive some of the law’s provisions as long as the waiver is clear and unambiguous in the CBA.  If no such waiver exists, the law’s requirements will apply to all employees, even those under a CBA.

How Does Alaska Paid Sick Leave Work?

Under the new law, employees will accrue paid sick leave at one hour for every 30 hours worked.  Employers with 15 or more employees cap annual accruals at 56 hours, while employers with fewer than 15 employees cap it at 40 hours annually.  Importantly, all unused leave will carry over to the next year without a carryover cap, though there are limits on how much leave can be used in a given year.  Employees with fewer than 15 employees are limited to 40 hours annually, while employees at larger companies can use up to 56 hours.

Employers with a paid leave policy (e.g., paid time off or PTO) that meets the law’s requirements will not need to provide additional sick leave.  However, if an employer does not offer paid leave, they must comply with the accrual and usage provisions outlined in the law.

What Can Alaska Paid Sick Leave Be Used For?

Alaska paid sick leave can be used for a variety of health-related reasons, including:

  • Mental or physical illness, injury, or health conditions
  • Medical diagnoses, treatment, or preventive care for the employee or their family members
  • Absences related to domestic violence, sexual assault, or stalking, which may include attending medical appointments, legal proceedings, or securing housing

Employees can use paid sick leave for themselves or to care for a family member.  A broad definition of “family member” includes parents, siblings, children, spouses, domestic partners, and others with close personal ties to the employee.

Documentation and Notice Requirements

While employees must provide notice in advance when possible, the law does not specify whether an employer can require advance notice for unforeseeable absences.  For absences of four or more consecutive workdays, employers may request documentation to verify the need for sick leave.  Acceptable documentation includes a note from a healthcare provider or, in cases of domestic violence or other qualifying emergencies, a police report or a written statement from a victim’s aid organization.

Employers cannot require employees to disclose the specifics of their illness or personal situation, nor can they request details about the employee’s health condition.  Any medical information must be kept confidential.

Transfer, Termination, and Rehire

Employees who transfer to another division or location within the same company or those rehired within six months after separation are entitled to retain any accrued paid sick leave.  If a successor employer hires an employee after a business change, they are entitled to the paid sick leave accrued under their previous employer.

Employer Responsibilities

Employers must provide employees with written notice of their paid sick leave rights within 30 days of the law’s effective date or the start of employment.  This notice must include information about how much paid sick leave is available, how it can be used, and the prohibition against retaliation for taking leave.

Employers must also be prepared to track paid sick leave accruals and usage.  While the law does not mandate how this information should be provided to employees, employers may want to consider including sick leave balances on pay stubs or having a written policy in place.

Prohibitions, Penalties, and Enforcement

The law includes strong anti-retaliation provisions. Employers cannot take adverse action against employees for using their paid sick leave, require employees to find replacements, or penalize them for taking time off for a covered purpose. Furthermore, an employer violating the law could be liable for lost wages and other damages.

Next Steps for Employers

The ballot measure is one of the country’s most straightforward paid sick leave laws. However, it leaves several unanswered questions that the Alaska Department of Labor and Workforce Development must address through rulemaking. Employers should monitor the department’s website and consult with legal experts to ensure they comply with the new requirements as the law’s implementation date approaches.

In the meantime, businesses should begin preparing for the July 1, 2025, effective date by reviewing their current leave policies, considering how to integrate the new Alaska paid sick leave requirements, and ensuring they are ready to track and manage accruals and usage for all eligible employees.

By staying proactive and informed, Alaska employers can ensure they meet the new obligations while maintaining a supportive environment for their workforce.

How We Can Help

Time Equipment Company offers Leave Management with its Time and Attendance software.  This system can be configured with various benefits buckets, including State Paid Leave, FMLA, and Pregnancy Leave.  Leave can be shown on the Time Card and designated as paid or unpaid.

For more information about Leave Management, contact Time Equipment Company at 800-997-8463 or sales@timeequipment.com.

*This document simplifies complex Acts as Time Equipment Company understands them.  It is not to be taken as legal advice.  The regulations for this program are changing.  Please get in touch with the Alaska Department of Labor for further information about Alaska Paid Leave.