Alaska published final regulations that implement the paid sick leave law. This law was approved by voters and went into effect on July 1, 2025 (see our post detailing the law here). The final regulations require employers to determine the number of full-time equivalents (FTEs) for the last calendar year by adding the hours worked by all full-time and part-time employees, then dividing the total by the maximum number of regular hours for a full-time worker during that period. If a business was not operational during the previous calendar year, calculations may be made based on the first three months of operation during the current year.
The final rule also requires employers to pay employees at their regular rate of pay when using sick leave. Employers must establish a 52-week consecutive period for calculating accruals and determining any applicable rollover policies (required for any unused sick leave, although employers may restrict employees from using more than the maximum amount during a calendar year). Eligible employers are permitted to frontload paid sick leave rather than allowing employees to accrue it. The frontloaded amount must be the minimum required amount (or pro-rated for an employee who hasn’t worked a full calendar year).
An employer must provide employees with written notice of the paid sick leave policy, and it must include:
- The employee’s entitlement to receive paid sick leave
- How much will be accrued (or frontloaded)
- When an employee may use paid sick leave
- Other verification or notice requirements
- Notice that retaliation by the employer against an employee using paid sick leave is not allowed
The final rules also require employers to include the paid sick leave balance and paid sick leave used by the employee during the year on each pay statement.
This article is informational and does not constitute legal or financial advice. Consult with an employment lawyer or accountant for additional clarification on how these changes impact your company.
