Alaska — Termination

Alaska law imposes different final-paycheck deadlines depending on who ends the employment. Under AS 23.05.140(b), when employment is terminated, all wages become due immediately and must be paid within a statutory window. If the employment is terminated by the employer — regardless of the cause for the termination — payment is due within three working days after the termination. If the employment is terminated by the employee, payment is due at the next regular payday that is at least three days after the employer received notice of the employee's termination of services.

Definition of "working days" for payment deadline

For the three-day payment deadline, "working days" are explicitly defined by Alaska regulation 8 AAC 25.030(5) as only Monday through Friday, excluding any legal holidays in that week. This means weekends and legal holidays do not count as working days for the payment deadline calculation. For example, if an employer terminates employment on a Friday, the three working days would be the following Monday, Tuesday, and Wednesday, unless a legal holiday falls on one of those days. This is distinct from the definition of “working days” for penalty calculation, where the focus is on the employee’s actual customary schedule (see the "Final paycheck penalty for late payment" section).

Source: Alaska Stat. § 23.05.140(b) Source: 8 AAC 25.030(5)

Alaska imposes a penalty on employers who fail to pay final wages according to the timing requirements in AS 23.05.140(b). Under AS 23.05.140(d), if the employer is late, the employee is entitled to continue receiving their regular wage, salary, or other compensation from the date of demand until paid, or for up to 90 working days, whichever period is shorter. The penalty clock starts only after the employee makes a demand for unpaid wages.

AS 23.05.140(f) prevents double recovery in actions for unpaid overtime. If an employee wins liquidated damages under AS 23.10.110 for unpaid overtime, the waiting-time penalty in subsection (d) does not apply—unless the Alaska Department of Labor and Workforce Development brings an enforcement action under subsection (e). This arrangement prevents employees from stacking liquidated and waiting-time penalties for the same late payment, but the state may still seek both penalties in its own enforcement action.

Definition of "working days" (penalty calculation)

For penalty purposes under AS 23.05.140(d), "working day" is defined by Alaska regulation 8 AAC 25.030(5):

> “with respect to computing a penalty due an employee under AS 23.05.140, 'working days' means those days an employee customarily and regularly worked during the course of employment.”

This means waiting-time damages accrue only for the days the employee actually would have worked during their customary schedule, not merely calendar days or days the employer is open for business. For example, if an employee routinely worked Monday, Wednesday, and Friday, only those days count toward the penalty clock.

No material change has occurred in the underlying authority since the last review. The only update is repairing the regulatory pamphlet link to its current official Alaska Department of Labor URL.

Source: Alaska Stat. § 23.05.140 Source: Alaska Department of Labor Pamphlet 600, Issue 51

Alaska law requires that when an employer terminates an employee, all wages owed must be paid within "three working days" of termination (AS 23.05.140(b)). The term "working days" for this payment deadline is not left open to interpretation: it is defined by the Alaska Administrative Code.

Definition — Only Monday through Friday, excluding legal holidays

Alaska regulation 8 AAC 25.030(5) states: > "In this section, 'working day' means a day other than a Saturday, Sunday, or legal holiday."

This means:

• Only Monday through Friday are counted as "working days."
• State-recognized legal holidays do not count as working days within the three-day window.
• If a termination occurs before a weekend or a legal holiday, exclude those days from the count.

How the count works:

• The date of termination (the day the employee is let go) is not counted. The count begins on the next working day after termination.
• If a legal holiday falls within the three-day period, the three-day window extends accordingly. For example, if termination occurs on a Friday and Monday is a state holiday, then the three working days would be Tuesday, Wednesday, and Thursday.
• Weekends are always skipped, regardless of whether the business operates on weekends.

Authoritative clarification The Alaska Department of Labor’s Wage and Hour FAQ confirms: “The three working days do not include weekends or legal holidays.” Their published forms repeat: “Do not include the day of termination, weekends, or legal holidays in the count.”

Contrast — penalty waiting days Note that for waiting-time penalties (late payment damages), the regulatory definition switches: there, "working days" means days the employee customarily worked (see 8 AAC 25.030(5)); but for the payment deadline under AS 23.05.140(b), it is strictly Monday–Friday, excluding legal holidays.

Source: Alaska Stat. § 23.05.140(b) Source: 8 AAC 25.030(5) Source: Alaska DOL Wage & Hour FAQ

Alaska law requires employers to pay final wages "within three working days" after an employer-initiated termination (Alaska Stat. § 23.05.140(b)). The term "working days" is explicitly defined by Alaska regulation:

Regulatory definition Under 8 AAC 15.160(5): > "In this section, 'working day' means a day other than a Saturday, Sunday, or legal holiday."

How the three-working-day count works:

• Only Monday through Friday count as "working days." Weekends (Saturday and Sunday) and any legal holidays as defined by the state do not count toward the deadline.
• The date of termination is day zero; the count begins on the next working day following termination. For example: if an employee is terminated on a Friday, the first working day is Monday (unless Monday is a holiday, in which case count from the next non-holiday weekday).
• If a legal holiday falls within the three-day period, skip it. Multiple holidays within a week will push the deadline further out.

Example calculations:

• Termination on Friday (no Monday holiday): working days are Monday, Tuesday, Wednesday—final wages due by end of Wednesday.
• Termination on Wednesday, with a Thursday holiday: working days are Friday, Monday, Tuesday—final wages due by end of Tuesday.
• Termination on Tuesday before two holidays: skip holidays, then count three working days from the next available weekday.

Contrast with penalty wage calculation: For waiting-time penalties under Alaska Stat. § 23.05.140(d), "working day" means those days the employee customarily worked (see 8 AAC 25.030(5)), which can differ from the statutory deadline calculation above.

Source: Alaska Stat. § 23.05.140 Source: 8 AAC 15.160(5) Source: Alaska Department of Labor Restaurant Industry pamphlet

Alaska Stat. § 23.05.140(b) explicitly addresses both the timing and the delivery location of final wage payments. When employment ends—regardless of whether the termination is initiated by the employer or employee—all wages become due immediately and must be paid within the statutory deadline (three working days after employer-initiated separation, next regular payday at least three days after notice for employee-initiated quits).

Statutory payment location AS 23.05.140(b) provides that the final paycheck must be paid "at the place of discharge or at the place where the employee is usually paid, whichever is later, or at a place agreed upon by both employer and employee." This is not silent: if there is a standard wage payment location (such as the usual worksite or by direct deposit), the final wages must be made available there, unless both parties agree in advance to an alternate location or method.

Method: usual practice or mutual agreement The Alaska Department of Labor confirms: “Wages must be paid by the method normally used unless the employer and employee agree to another method or place of payment.” (Restaurant Industry Notice, p.2) Mailing the final check is permitted if it is the ordinary payroll method or both parties expressly agree. Direct deposit is allowed if that is the employee’s regular method, or if the employee opts in at separation. In-person delivery is required only if that is the established routine or if both parties agree.

Best practice No matter the method, the payment must actually be accessible to the employee on or before the statutory deadline. Employers who mail checks should account for travel time and risk late penalties if delivery is not timely. Written documentation of any alternative arrangements is prudent, but not strictly required by law.

Summary:

• The statute requires delivery at the place of discharge, the usual pay location, or another agreed place.
• Usual payroll method applies unless both parties agree otherwise.
• Payment is not considered made until wages are accessible to the employee.

Source: Alaska Stat. § 23.05.140(b) Source: Alaska Department of Labor Restaurant Industry Notice, p.2

Alaska law requires that when employment ends, the employer must pay "all wages, salaries, or other compensation for labor or services" within the time window set by AS 23.05.140(b): within three working days of an employer-initiated termination, or by the next regular payday that is at least three days after the employee's notice if the employee quit. The key statute is supplemented by detailed regulatory definitions.

Commissions: Under 8 AAC 25.030(3), "rate of pay" includes commissions, but only if they have been earned under the terms of the relevant compensation agreement (which may be a written contract, commission plan, or explicit employer policy). An earned but unpaid commission must be included in the final paycheck if all conditions for earning it have been satisfied. Source: 8 AAC 25.030(3)

Accrued but unused vacation or PTO: Alaska does not require payout of unused vacation or paid time off (PTO) unless there is an "explicit written policy"—which may be an employment handbook, contract, or collective bargaining agreement—committing to such payout. When such a policy or agreement exists, accrued and unused vacation/PTO becomes "wages" under the statute and must be paid in the final check. If policy or contract is silent or explicitly prohibits payout, no payout is required. Source: 8 AAC 25.030(3)

Accrued but unused sick leave: There is no requirement in Alaska law to pay out sick leave at separation unless an explicit written policy, employment contract, or collective bargaining agreement requires it. Otherwise, accrued sick leave is not "wages" as defined by the regulation. Unable to confirm as of 2026-06-22 for any statutory or regulatory mandate apart from explicit employer promise.

Bonuses (earned): Earned (fully vested and non-discretionary) bonuses are included as "other compensation for labor or services," and must be paid in the final paycheck if contractually due at separation. Discretionary or not-yet-earned bonuses are not required in the final check. Source: 8 AAC 25.030(4)

Unreimbursed business expenses: Alaska law does not define unreimbursed business expenses as "wages" under AS 23.05.140(b) or 8 AAC 25.030. Unless a contract or policy treats these as regular compensation, they do not have to be included in the final paycheck. Unable to confirm as of 2026-06-22 for any statutory or regulatory mandate treating unreimbursed expenses as wages.

Summary Table:

| Compensation Type | Included in Final Paycheck? | Primary Authority | |------------------------------------|----------------------------------------------------------------------------------|----------------------------------| | Earned but unpaid commissions | Yes, if all conditions for earning are met | 8 AAC 25.030(3) | | Fully vested (earned) bonuses | Yes, if contractually due at separation | 8 AAC 25.030(4) | | Accrued unused vacation/PTO | Only if explicit employer policy or contract promises payout | 8 AAC 25.030(3) | | Accrued unused sick leave | Only if explicit employer policy or contract promises payout | Unable to confirm as of 2026-06-22| | Unreimbursed business expenses | Not required unless policy/contract treats as wages | Unable to confirm as of 2026-06-22|

Effective dates: AS 23.05.140(b) and 8 AAC 25.030 are current as of June 2026.

Source: Alaska Stat. § 23.05.140(b) Source: 8 AAC 25.030(3)-(4)

Alaska Stat. § 23.05.140(b) governs not just the timing, but also the location and method for delivering final wages after employment ends. The statute requires that final wages "are payable at the place of discharge or at the place where the employee is usually paid, whichever is later, or at a place agreed upon by both employer and employee."

Usual payroll method or mutual agreement controls delivery Employers must pay final wages using the method and location that is standard for the employee (for example, direct deposit, workplace hand-off, or by mail if that is custom). The Alaska Department of Labor (DOLWD) states: "Wages must be paid by the method normally used unless the employer and employee agree to another method or place of payment. If an employer customarily mails paychecks to employees, the final wages can be mailed. If employees typically pick up paychecks at the worksite, the final wages may be made available there, or mailed if agreed." (Restaurant Industry Notice, p.2)

Mailing is permitted if it is either the ordinary method or both parties explicitly agree. If mailing is used, the employer should verify the address in writing to prevent delay or non-delivery. There is no legal requirement for in-person pickup unless that is the established or mutually agreed method.

When is payment "made"—mailing vs. receipt? Neither the statute nor DOL regulations specify whether final wages are considered "paid" on mailing or upon actual receipt by the employee. Alaska DOL guidance warns that mailing the check close to the deadline can result in late payment if the check does not arrive by the statutory deadline; employers are advised to confirm timely delivery, not just mailing. This means payment is safest treated as "made" when received by the employee, not when postmarked.

Summary:

• Final pay must be delivered by the usual method/location unless both employer and employee agree to something else in advance.
• Mailing is allowed when it is the standard practice or when explicitly agreed for the final check.
• Failing to ensure the employee actually receives payment by the statutory deadline may result in a violation, even if a check is mailed the last day.

Source: Alaska Stat. § 23.05.140(b) Source: Alaska Department of Labor Restaurant Industry Notice, p.2

Alaska law does not set a specific statute of limitations in AS 23.05.140 for claims related to unpaid final wages or waiting-time penalties after termination. Instead, the deadline to bring a claim depends on the law or agreement under which the wages are due:

1. Wage claims under the Alaska Wage and Hour Act (AS 23.10.050–23.10.150): If an employee's claim for unpaid final wages (including penalties) is based on the Alaska Wage and Hour Act (for example, unpaid minimum wage, overtime, or applicable liquidated damages), the statute of limitations is two years from the date the cause of action accrues. That deadline is set by AS 23.10.130, which is the same statute that governs general wage-theft claims in Alaska. The clock starts running when the right to the wage or penalty arises—typically, when payment should have been made under AS 23.05.140(b).

2. Contractual wage claims (including CBA claims): If the right to final wages comes from a contract (such as a written contract or collective bargaining agreement), Alaska courts use the limitations period applicable to contracts. For written contracts in Alaska, this is typically six years (see Reed v. Municipality of Anchorage, 782 P.2d 1155 (Alaska 1989)). AS 23.05.140 does not override a longer contract-based limitations period.

Key takeaway: There is no universal limitations period for AS 23.05.140 claims. The controlling deadline comes from the underlying law or contract: two years for claims under the Wage and Hour Act, six years for written-contract claims, and possibly other periods for different bases.

Source: Alaska Stat. § 23.10.130 Source: Reed v. Municipality of Anchorage, 782 P.2d 1155 (Alaska 1989)