The short answer Alaska's minimum wage rose to $14.00 on July 1, 2026 (Ballot Measure 1 schedule; $15.00 comes July 1, 2027), and the state requires daily overtime after 8 hours. A new statewide paid sick leave law took effect July 1, 2025.
What Alaska requires
Alaska
Minimum wage (2026). $14.00/hour effective July 1, 2026 under Ballot Measure 1 ($13.00 from July 1, 2025; $15.00 scheduled July 1, 2027, then inflation-indexed).
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Overtime. Alaska Wage and Hour Act requires 1.5x after 8 hours in a day OR 40 in a week for employers with 4 or more employees (employers with fewer than 4 employees in the regular course of business are exempt) — stricter than the FLSA for long home care shifts.
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Paid sick leave. Effective July 1, 2025, employees accrue 1 hour of paid sick leave per 30 hours worked, capped at 40 hours/year for employers with fewer than 15 employees and 56 hours/year for 15 or more.
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Home care note. Alaska's daily-overtime rule means a caregiver working two 12-hour shifts in a week is owed 8 hours of overtime even though weekly hours total only 24.
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The federal baseline (applies in every state)
Federal
FLSA coverage. Caregivers employed by home care agencies are covered by the Fair Labor Standards Act: federal minimum wage ($7.25) and overtime apply, because agencies are 'third-party employers' of domestic service workers.
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2013 Home Care Rule. Under the 2013 Home Care Rule (29 CFR 552.109), third-party employers such as home care agencies may NOT claim the FLSA companionship-services or live-in domestic worker exemptions — only the individual, family, or household using the services can claim them.
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Rescission proposal status (July 2026). On July 2, 2025 DOL proposed rescinding the 2013 Home Care Rule (comments closed Sept. 2, 2025), but as of July 2026 no final rule has issued — the 2013 rule remains legally in effect. Field Assistance Bulletin 2025-4 (July 25, 2025) directed WHD staff to pause enforcement of the rule against third-party agencies, but the FAB does not affect private lawsuits by caregivers, which can still recover back overtime plus liquidated damages.
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Sixth Circuit upholds rule (2026). In April 2026 the Sixth Circuit (DOL v. Americare Healthcare Services) upheld the 2013 Home Care Rule as a valid exercise of authority Congress expressly delegated to DOL, even post-Loper Bright. Practical takeaway for agencies: keep paying minimum wage and time-and-a-half overtime to caregivers unless and until a final rescission rule takes effect.
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Overtime & travel time. Agency caregivers must receive 1.5x their regular rate for hours over 40 per workweek, and travel time between clients during the workday is compensable hours worked (commuting to the first client and home from the last is not).
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Sleep time on 24-hour shifts. For shifts of 24 hours or more, an employer and live-in or shift caregiver may agree to exclude a bona fide sleep period of up to 8 hours if adequate sleeping facilities are provided and the worker usually gets at least 5 hours of uninterrupted sleep; interruptions for work must be paid. On shifts under 24 hours, all time on duty — including permitted sleep — is compensable.
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