Today’s Key Takeaway: Raising Alaska’s minimum wage will do more harm than good for Alaska’s economy. Increasing the cost of living for low wage workers who are already struggling and forcing Alaska businesses to employ fewer workers and raise prices for Alaska consumers.
Ballot Measure 1, formally known as 23 AMLS seeks to revise Alaska’s statute that sets minimum wage.
In Section 1, the measure lists “findings” that provide reasons for the proposed changes. “It is in the public interest to increase minimum wage….in order for Alaska to compete with West Coast states who have higher minimum wages and to cover increased costs of living.” Note – Such findings are not subject to legal challenge and have no legal force behind them.
Sections 2 and 3 set the following schedule and detail with regard to the proposed increases:
- July 1, 2025 – $13.00
- July 1, 2026-$14.00
- July 1, 2027 – $15.00
- January 1, 2028 – the minimum wage will adjust each January 1, using 100 percent of the rate of inflation based on CPI for all urban consumers for the Anchorage metro area, compiled by the Bureau of Labor Statistics.
- Amount will be rounded to the nearest ten cents. (i.e., $15.57 to $15.60)
- Requires the minimum wage to exceed federal minimum wage by $2
The majority of employers in the state of Alaska are paying far above what the wage would be raised to in 2027.
A review of the Alaska Department of Labor’s “Alaska Wages” listings shows only the restaurant industry posting mean wages slightly below $15/hr. It’s no surprise that in areas like Seattle and California, where similar measures have been passed, restaurants have been hit the hardest. Incurring higher labor costs has resulted in fewer employees and an increase in prices for the consumer. Workers in the industry have been hurt by reduced hours and higher costs of living related to the minimum wage increases forced on their employers.
Thursday: Ballot Measure 1 Part 2 – Mandatory Sick Leave