A ballot measure that would raise Alaska’s minimum wage and allow workers to earn paid sick leave received support Thursday from a coalition of business owners. Members of Alaska Business for Better Jobs think the measure would positively impact Alaska businesses.
If passed, Ballot Measure 1 would raise the minimum wage from $11.73 to $13 July 1, 2025, $14 in 2026 and $15 in 2027. Annual cost of living adjustments would begin January 2028.
Derrick Green owns Waffles and Whatnot, a restaurant in east Anchorage. He has seven employees, who are already paid more than $15 an hour and accrue sick leave. He said it’s not uncommon for fast food restaurants to offer more than that for starting pay.
Green said offering higher pay and paid time off makes workers happy, and when workers are happy, they’re more productive.
“Do you know what alienates customers at restaurants and other businesses? It’s when employees are constantly worried if they can make ends meet, and they cannot focus on doing the best that they can do while they’re at work,” he said.
Alaskans voted to raise the minimum wage in 2014. Nearly 70% of voters supported that measure, but it didn’t include sick leave.
Employers with 15 employees or more would have to provide the ability to accrue up to 56 hours of paid sick leave per year, and up to 40 hours if there’s less than 15 employees.
Thea Agnew Bemben is the co-owner of Agnew Beck Consulting. Her employees also make more than $15 an hour and have sick leave. But she said working-age people are a pillar of the state’s business economy and thinks the measure could help retain them.
“When we recruit and hire, and train people and invest in them in our businesses, that doesn’t come cheaply. That’s a long process that takes time and effort. And when you hire someone and they don’t stay very long, that really wastes all that time, effort, and money,” she said.
The Anchorage Chamber of Commerce doesn’t have a position on the measure yet, according to an emailed statement from their president, Kathleen McArdle. The Alaska Chamber CEO, Kati Capozzi, told Stateline last month the business group opposes the ballot measure, saying it could create problems in the food service and tourist industries.
Right now, 23 states have higher minimum wages, according to the U.S. Department of Labor.
Ballot Measure 1 will be on the November ballot.
Ava White reports on economics and hosts the statewide morning news at Alaska Public Media. Reach her at awhite@alaskapublic.org or 907-550-8445. Read more about Ava here.
