Alaska Payroll Rules

Frequency & Manner of Payment

You must pay your employees semimonthly or monthly.

You can pay your employees by cash or check. You can also pay them via direct deposit, with their consent.

Payment Upon Separation

If you discharge an employee for any reason, you must pay the employee all their wages within three (3) working days.

If you lay off an employee temporarily, you must pay them by the next regular payday.

If an employee quits or resigns voluntarily, you must pay them by the next regular payday.

If an employee is suspended or resigns due to a labor dispute (like a strike), you must pay them by the next regular payday.

Deductions

With written consent, you may deduct the following from an employee’s paycheck:

• money to pay a creditor or other third party;
• reimbursement for transportation from the place of hire to the place of employment;
• room and board, if you normally provide it and it’s used voluntarily by the employee; and
• a security deposit to ensure the employee returns uniforms or other equipment.

You cannot deduct:

• cash shortages,
• damaged or lost property,
• the cost of uniforms or other necessary equipment,
• dishonored or bad checks, or
• anything similar.

Uniforms & Other Required Equipment or Tools

If the uniform or equipment is required by federal, state, or local health and safety codes, then you cannot require an employee to purchase it.

You also cannot require an employee to purchase uniforms or equipment if the nature of your business requires their use, and if

• the uniform or equipment is distinctive and advertises your products or services (unless you also sell the clothing to the public), or
• the uniform cannot be worn or used during normal social activities.

You can, however, require the employee to pay a security deposit on any uniform or equipment.

Pre-Hire Medical, Physical, & Drug Tests

Alaska does not have any laws about whether you can require employees to pay for pre-hire medical, physical, or drug tests.

Notice of Wage Reduction

You must inform an employee of any changes to their wages or to the day and place of their payment. You must inform them no later than the payday before the change.

Paystubs

Each payday, you must provide each employee with a paystub. The paystub must include:

• rate of pay,
• gross wages,
• net wages,
• beginning and ending dates of the pay period,
• federal income tax withheld,
• FICA deductions,
• Alaska Employment Security Act contributions,
• room and board costs,
• any advances,
• straight-time and overtime hours worked in the pay period, and
• any other authorized deductions.

Recordkeeping

For each employee, you must keep the following information for at least three (3) years:

• name, address, and occupation;
• rate of pay and amount paid each pay period;
• hours worked each day and each workweek; and
• any other relevant payroll information.

Notices

When you hire an employee, you must tell them (in writing) the day and place of payment and their wage rate.