Alaska's New Paid Sick Leave Policy Starting July 2025

It is important to be aware of the upcoming changes that will impact businesses in Alaska. Starting July 1, 2025, the state will be implementing a new Paid Sick Leave Policy, and it's crucial that you understand how this will affect your business and your employees.

Key Details of the New PTO Policy:

1. Accrual of Paid Sick Leave

   • Employees will accrue 1 hour of paid sick leave for every 30 hours worked.

   • Employers with 15 or more employees will be required to cap accrual and usage at 56 hours per year.

   • Employers with fewer than 15 employees can cap accrual and usage at 40 hours per year.

2. Usage of Paid Sick Leave

   • Employees can use their accrued sick leave for their own or a family member’s physical or mental illness, injury, or health condition.

   • Sick leave can also be used for diagnosis, care, treatment, preventive care, or for domestic violence, sexual assault, or stalking related needs.

3. Carryover of Unused Sick Leave

   • Unused paid sick leave will carry over to the following year, but employers are not required to allow employees to use more than the capped hours (40 or 56) per year.

4. Employer Requirements

   • Employers must notify employees about their entitlement to paid sick leave, the amount they will accrue, and the prohibition against retaliation.

   • This notice should be given at the start of employment or within 30 days of the law’s effective date.

What Does This Mean for You?

As a business owner, it’s important to review your current leave policies and ensure they align with this new law by July 1, 2025. You may need to make updates to your payroll systems, employee handbooks, and overall leave management to stay compliant.

We recommend reaching out to your bookkeeper or payroll provider to discuss any necessary adjustments. If you need assistance or have questions, feel free to contact us — we’re happy to help!

Stay ahead of the curve by ensuring your business is compliant with this new regulation, and keep your team’s wellbeing a priority.

Thank you for being part of our community. We’ll continue to keep you updated on any future changes that might affect your business.

Source: https://www.labor.state.ak.us/lss/ballot-1-faq-2025.html