AK HB125

Increases Alaska's minimum wage to $7.85 per hour for work performed on or after January 1, 2010 (previously $7.15 per hour).

Sets minimum wage at $8.60 per hour effective January 1, 2011, and $9.45 per hour effective January 1, 2012.

Establishes annual automatic adjustments to minimum wage beginning January 1, 2013, based on 100 percent of the inflation rate using the Consumer Price Index for the Anchorage metropolitan area.

Requires the Department of Labor to adopt regulations by September 30 of each year to set the adjusted minimum wage for the following calendar year, with amounts rounded up to the nearest cent.

Prohibits employers from using tips or gratuities as credit toward minimum wage requirements and establishes that federal tip credit provisions do not apply.