AK HB240

Allows employers to apply tip credit to Alaska's state minimum wage, modifying the previous prohibition on tip credits.

Permits tip credit only if the employee reports tips to the employer for federal income tax purposes and the reported tips average at least $7.25 per hour for hours worked.

Requires employers to provide written advance notice to employees that the employer may reduce pay based on reported tips and gratuities.

Caps tip credit at the difference between the state minimum wage and $7.25 per hour, calculated by dividing reported tips by hours worked in the pay period.

Maintains the existing minimum wage of $7.15 per hour established January 1, 2003, while adding the conditional tip credit mechanism.