22 ALASKA RESOURCE REVIEW SUMMER 2024 Minimum wage ballot initiative brings about a number of concerns EDITOR’S NOTE: RDC IS A NONPARTISAN ORGANIZATION THAT ENDEAVORS TO INFORM OUR MEMBERS ON ISSUES THAT MAY IMPACT THEIR ABILITY TO DO BUSINESS IN ALASKA. RDC HAS NOT YET TAKEN A POSITION ON THIS INITIATIVE BUT ENCOURAGES OUR MEMBERS TO TAKE A CLOSER LOOK AT THE DETAILS OF THIS INITIATIVE THAT WILL APPEAR ON THE BALLOT FOR THE NOVEMBER GENERAL ELECTION. BY HARRY WHITED IT’S AN ELECTION YEAR, MEANING ALASKAN VOTERS CAN EXPECT ONE OR MORE BALLOT PROPOSITIONS. Ballot initiatives have become a regular part of life for Alaska voters, with often unintended or unexpected consequences that voters need to weigh. Such is the case in 2024 with an initiative to follow the national trend of mandating higher minimum wages, but also has a provision that could change Alaska rules for employee sick leave. The “Alaska’s Minimum Wage Standards Initiative” is expected to be on the general ballot on Nov. 5. The initiative proposes raising the minimum wage until 2027: n $13 per hour effective July 1, 2025 n $14 per hour effective July 1, 2026 n $15 per hour effective July 1, 2027 It is not raising the minimum wage that concerns industries in Alaska. The issue lies in the new mandate, also in that initiative, for paid sick leave employers would be required to provide employees. While it is not at the forefront of the initiative, it is one of the proposals that raises concern among the state’s industries. The initiative proposes allowing 56 hours of sick leave per year if the employer employs 15 or more people, and 40 or more hours if the employer employs less than 15. The caveat is that seasonal workers would not be exempt from this. Katie Capozzi, President and CEO of the Alaska Chamber, said key Alaska industries could be heavily affected. “The sick leave in particular we have concerns within the hospitality industry, the tourism industry and the fishing industry,” Capozzi said. “These are businesses that are very nimble and frankly don’t have the ability to do things like offer sick leave and keep track of it,” Capozzi said. Capozzi gave an example as to how this initiative could affect businesses regarding sick leave. “If you hire someone six months after they’ve worked for you then the sick leave that they had accrued needs to be carried over,” Capozzi said. Capozzi said this could affect businesses of any size, but especially smaller ones. “Mom and pop” shops, small businesses and nonprofits would have to comply with the mandate no matter the size of their staff. The initiative could affect small businesses the most. Capozzi said larger businesses already provide sick leave. However, smaller businesses could have a harder time since they may not be in a position to provide much sick leave. “It creates a lot of red tape (at a time when) our small businesses are really struggling to bring on staff, keep staff, and have a successful business,” Capozzi said. “Adding this requirement on to (small businesses), we’re concerned about the impact it would have on their businesses,” Capozzi said. “It would be another SICK LEAVE MANDATE WOULD AFFECT EMPLOYERS Commercial fishing in Alaska could be affected by the sick leave mandate in the ballot initiative.
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