Alaska tip pooling laws & tipped minimum wage
Alaska is one of only seven states that ban the tip credit: every tipped worker gets the full minimum wage in cash, and tips are paid on top.
| Regular minimum wage | $14.00/hr |
| Minimum cash wage for tipped workers | $14.00/hr (full minimum) |
| Maximum tip credit | Not allowed |
| Tips belong to | Employees — always |
A tip credit lets an employer count your tips toward the minimum wage it owes you. Rates reviewed July 2026. Rates change — confirm with the Alaska labor department. Not legal advice.
What's specific to Alaska
Alaska bans the tip credit under long-standing state law (AS 23.10.065(a)), not under Ballot Measure 1 — the ballot measure set only the wage schedule. The minimum wage rose to $14.00 on July 1, 2026 under Ballot Measure 1, and rises to $15.00 on July 1, 2027.
Alaska bans the tip credit — your tips are yours on top of full minimum wage
Alaska is a one-fair-wage state. Employers cannot count your tips toward the minimum wage, so you are paid the full state minimum in cash and every tip you earn is on top of that. There is no reduced tipped cash wage here and no tip-credit shortfall to chase, because the employer never gets to take a credit in the first place.
That full cash minimum is $14.00 an hour as of July 1, 2026. Because tips cannot be used to satisfy your base pay, a server, bartender, or barista in Alaska must be paid the same $14.00 in wages as any other worker, and keeps their gratuities separately.
The minimum wage is rising under Ballot Measure 1
Alaska voters approved Ballot Measure 1 in November 2024, which sets a schedule of increases: the wage moved to $13.00 in July 2025, to $14.00 on July 1, 2026, and to $15.00 on July 1, 2027, with annual inflation adjustments after that.
Because the tip credit is banned, each of these increases is paid to you fully in cash. When the state minimum rises, your base pay rises with it, and tips are paid on top of it.
What tip pooling can and cannot look like in Alaska
Since no employer takes a tip credit, Alaska employers have more room to structure a mandatory tip pool that includes back-of-house staff such as cooks and dishwashers — a pool federal law would not allow where a tip credit is taken. What never changes is that owners, managers, and supervisors may not keep any portion of employee tips.
If your employer skims tips or pays below the full state minimum, you can file a wage complaint with the Alaska Department of Labor and Workforce Development, Wage and Hour Administration, or with the U.S. Department of Labor.
Tip pooling in Alaska
Alaska follows the federal baseline for pooling: employers may require tip pooling, and because no tip credit exists, pools may legally include back-of-house workers like cooks and dishwashers. Managers and supervisors are always excluded.
One federal rule applies everywhere: managers and supervisors can never take from a tip pool. Separately, credit card processing fees may only be deducted from tips where state law allows it — and several no-tip-credit states restrict that practice too.
What this means for your tip-out
Because Alaska pays the full minimum wage before tips, your base pay does not depend on how the pool splits. Use the tip-out calculator to split a shift by your house's percentages or by hours, and see standard tip-out percentages to check whether your house's rates are typical.
Alaska tip law FAQs
What is the tipped minimum wage in Alaska?
Alaska does not allow a tip credit, so tipped employees must be paid the full minimum wage of $14.00/hr in cash. All tips come on top of that wage.
Is mandatory tip pooling legal in Alaska?
Alaska follows the federal baseline for pooling: employers may require tip pooling, and because no tip credit exists, pools may legally include back-of-house workers like cooks and dishwashers. Managers and supervisors are always excluded.
Can my manager take a share of the tip pool in Alaska?
No. Federal law prohibits managers, supervisors, and owners from keeping any portion of employee tips in every state, including Alaska. A manager may keep only tips they directly and solely earned (e.g., a table they personally served start to finish).
Can my employer in Alaska pay me a lower "tipped" wage because I get tips?
No. Alaska bans the tip credit, so your employer must pay you the full state minimum wage in cash — $14.00 an hour as of July 1, 2026, rising to $15.00 on July 1, 2027 — no matter how much you make in tips. Your tips are always in addition to that wage.
Can cooks and dishwashers be in a tip pool in Alaska?
They can. Because no tip credit is taken in Alaska, a mandatory tip pool may include back-of-house staff who do not normally receive their own tips. The one firm limit is that owners, managers, and supervisors can never take a share of the pool.