Navigating Paid Time Off (PTO) and Alaska Leave Laws is essential for both employers and employees. While Alaska has historically allowed significant flexibility in time-off policies, new updates, including the Paid Sick Leave Law effective July 1, 2025, mean businesses must ensure compliance by 2026.
This guide explains Alaska’s PTO and leave rules, including vacation, sick, and family leave, along with specific protections for military, jury, and voting leave. With a clear understanding of these policies and tools like the Day Off app, organizations can remain compliant, and employees can fully understand their rights and benefits.
Paid Time Off (PTO) in Alaska
Leave Quota
In Alaska, vacation leave is not required by law. Employers may choose whether to offer vacation or PTO and under what conditions. If they do, those terms must be clearly defined in company policies, employment contracts, or collective bargaining agreements.
Accrual
Employers are not legally required to pay out accrued vacation or PTO when an employee leaves. However, if the company policy or employment contract guarantees payment, that agreement must be honored.
Rollover (“Use-It-or-Lose-It”)
Alaska law permits “use-it-or-lose-it” policies, allowing employers to require employees to use their PTO by a specific deadline or forfeit it. Employers must communicate this policy clearly and in writing.
Payout on Termination
Alaska has no statute mandating payout for unused vacation or PTO upon termination. The decision depends entirely on company policy or contractual agreement.
Sick Leave in Alaska
New Paid Sick Leave Law (Effective July 1, 2025)
Beginning July 1, 2025, Alaska employees will start earning paid sick leave, making 2026 the first full year of statewide compliance.
Key details include:
Employees earn 1 hour of paid sick leave for every 30 hours worked.
Employers with 15+ employees may cap accrual at 56 hours per year.
Employers with fewer than 15 employees may cap accrual at 40 hours per year.
Unused sick leave carries over to the next year, up to the applicable cap.
Leave can be used for personal illness, family medical care, or domestic-violence-related absences.
Employers are encouraged to update their leave-tracking systems before 2026 to ensure full compliance.
Family, Maternity, and Paternity Leave
Federal Law (FMLA)
Eligible employees can take up to 12 weeks of unpaid, job-protected leave for qualifying family and medical reasons, such as childbirth, adoption, or serious illness.
To qualify, an employee must:
Have worked at least 12 months,
Have logged 1,250 hours in the past year, and
Work for an employer with 50+ employees within 75 miles.
Alaska Family Leave Act (AFLA) Public Sector
The AFLA grants up to 18 weeks of job-protected leave to eligible public employees within a 12- or 24-month period. Covered reasons include pregnancy, childbirth, adoption, or caring for a family member with a serious health condition.
Anti-Discrimination Protections
The Alaska Human Rights Law prohibits discrimination based on pregnancy, childbirth, or related conditions. This applies to both private and public employers of all sizes.
Bereavement Leave
There is no state or federal requirement for bereavement leave in Alaska. Employers may choose to offer paid or unpaid time off for bereavement, but they must apply policies fairly and consistently across all employees.
Jury Duty Leave
Employers must provide employees with unpaid time off to serve on a jury. It is illegal to terminate, penalize, or retaliate against employees for fulfilling jury obligations. Public employers, however, must provide paid jury leave to full-time employees.
Military Leave
Under both Alaska law and the Uniformed Services Employment and Reemployment Rights Act (USERRA), employees are entitled to unlimited unpaid leave for military service, along with reinstatement rights.
Public employees called to duty by the governor receive five days of paid leave per year.
Voting Leave
If an employee’s work schedule does not allow sufficient time outside of working hours to vote, the employer must provide paid time off to vote. While the law does not specify how much time, it must be reasonable to ensure employees can cast their ballots.
Alaska State Holidays in 2026
Private employers are not legally required to offer paid or unpaid leave on state holidays. However, many choose to include holiday pay or additional PTO as part of their benefits package.
Official state holidays in 2026 include:
New Year’s Day, January 1
Martin Luther King Jr. Day, January 19
Presidents’ Day, February 16
Seward’s Day, March 30
Memorial Day May 25
Independence Day, July 4
Labor Day, September 7
Alaska Day, October 18
Veterans Day, November 11
Thanksgiving Day, November 26
Christmas Day, December 25
Using the Day Off App to Manage Leave
As Alaska employers prepare for the new paid sick leave law, managing multiple leave types can be challenging. The Day Off app offers an intuitive solution by:
Automating PTO and sick-leave accruals,
Allowing flexible settings for rollover and usage caps,
Giving employees full visibility into their balances, and
Simplifying HR compliance and record-keeping.
For employees, the app makes requesting, tracking, and planning time off simple and transparent, improving satisfaction and workplace communication.
Frequently Asked Questions
Is paid vacation mandatory in Alaska?
No. Paid vacation is not a legal requirement in Alaska. Employers can decide whether to offer it and under what terms, but if they do, those terms must be clearly outlined in writing and applied consistently.
What’s the difference between PTO and vacation leave?
PTO (Paid Time Off) is a flexible policy that combines various leave types, such as vacation, sick days, and personal time, into one pool. Vacation leave typically refers only to time off for rest or travel.
Will the new paid sick-leave law apply to all employers?
Yes. Beginning in mid-2025, all Alaska employers must provide paid sick leave, though smaller employers can use lower accrual caps. This ensures both large and small businesses maintain fair, proportional policies.
Can unused sick leave roll over into the next year?
Yes. Unused sick leave will carry over into the next calendar year, though employers may cap the total number of hours an employee can accumulate.
Are employers required to pay out unused PTO or vacation when someone leaves?
Not by law. However, if a company’s written policy or employment contract states that unused PTO or vacation will be paid out at termination, the employer must honor that agreement.
Can companies enforce “use-it-or-lose-it” rules?
Yes, as long as the policy is clearly communicated in advance and aligns with any contractual terms. Employers should provide employees with enough notice and flexibility to use their time before it expires.
How much maternity or paternity leave can employees take?
Under federal law, eligible employees can take up to 12 weeks of unpaid, job-protected leave for childbirth, adoption, or bonding with a new child. Public-sector employees may qualify for up to 18 weeks under the Alaska Family Leave Act.
Do employees receive pay while on jury duty?
Private-sector employers are not required to pay for jury duty, but employees must be given time off without penalty. Public employees, however, are entitled to paid leave during jury service.
Are employees guaranteed time off to vote?
Yes. Employers must provide paid time off if an employee’s schedule doesn’t allow enough time outside of work to vote. The amount of leave should be sufficient for the employee to cast a ballot.
How can the Day Off app help businesses stay compliant?
The Day Off app automates leave accrual, tracking, and reporting, ensuring employers meet all new legal requirements while keeping policies transparent and easy to manage. It also reduces errors and paperwork, improving efficiency across the organization.
Conclusion
As Alaska moves into 2026, employers must adapt to both traditional PTO flexibility and the new mandatory paid sick-leave requirements. Transparency, fair application, and proper documentation are essential to compliance.
Employers should review and update policies now to stay compliant, while employees should familiarize themselves with their rights under both state and federal law. With tools like the Day Off app, managing PTO, sick leave, and other absences becomes seamless, fostering a workplace culture built on trust, balance, and accountability.