ANCHORAGE, Alaska (KTUU) – The passage of Ballot Measure 1 from the November 2024 ballot has led to local business owners expressing fear for their businesses.

Ballot Measure 1, which passed with 57.98% support, would increase Alaska’s minimum wage starting in 2025. The language of the vote calls for annual increases starting in 2025 at $13/hour, $14/hour in 2026 and $15/hour before 2027. “The minimum wage (in Alaska) would always be at least $2 above the federal minimum wage. “

In addition to raising the state’s minimum wage, the ballot measure will require paid sick leave for employees – 40 hours or more for most workers and 56 hours for employers with 15 or more employees. The sick leave granted would continue into next year.

Ballot Measure 1 has nothing to do with wages or benefits and also prohibits employers from requiring employees to attend a meeting on religious or political topics.

At a meeting at 49th State Brewing in downtown Anchorage, local business owners said they were concerned about the impact the ballot measure could have on their profits.

“What profits?” An attendee who identified himself as a member of the Chamber of Commerce spoke in a panel discussion about what he expects from the change.

During the panel discussion, many noted the difficulties small business owners have experienced during the pandemic, and one panelist noted that profit margins still have not returned to their original state.

Celeste Hodge Growden, president and CEO of the Alaska Black Caucus, said she attended the meeting because she wasn’t sure what to expect after the ballot measure passed.

“I am a non-profit organization with a limited number of employees. And we just hired people for the first time last year,” Hodge Growden said. “Frankly, I’m here to make sure we get information that we can bring back to see if we’re able to continue to retain employees.”

Hodge Growden voted “yes” on Ballot Measure 1 – she said she supported raising the minimum wage for workers (which currently stands at $11.73 an hour).

“We pay a lot more than minimum wage,” Hodge Growden said. “But even after that ballot passed, we were unable to offer paid leave, among other things.”

Other business owners who attended the meeting said the same thing; They came by to see if they could resolve the uncertainty about how the ballot measure will become law.

As of this writing, the language in the ballot measure’s information requires wage increases to take effect on July 1 of each year through 2027.

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