Important Updates Before the Election
WELCOME
Letter from the President
BY SARAH OATES | ALASKA CHARR PRESIDENT & CEO
Important Updates Before the Election
Ballot Measure 1 : Minimum Wage , Paid Sick Leave , Captive Audience On the 2024 general election ballot , Alaskans will be asked to vote on Ballot Measure 1 which , if passed , would significantly impact your businesses in three major ways :
• It will increase the minimum wage to $ 15 / hr by July 1 , 2027 ($ 13 in 2025 , $ 14 in 2026 , and then adjusted annually to inflation thereafter ). Alaska is one of seven states without a tip credit , and with our industry already experiencing record high labor costs , this will certainly boost those even more .
• Employers will be required to provide all employees with paid sick leave .
· Employees would automatically earn up to 56 hours per year for businesses with 15 + employees , and up to 40 hours per year for those with fewer than 15 .
· There are no exceptions for seasonal or part-time employees .
· Employers would be required to carry over paid sick leave the following year , including for seasonal employees .
· Employees may use paid sick leave for themselves or to assist any family member and are not required to provide a doctor ’ s note unless using sick leave for four or more consecutive work days .
• Unions would be allowed to speak with employees labor organization , but employers would be prohibited from talking with their own employees about the impacts of unionization .
Your friends , customers , and colleagues need to understand how Ballot Measure 1 will impact your business .
HB 189 : Lowering the Alcohol Serving Age from 21 to 18 While he does not appear to have an issue with the content of the bill , Governor Dunleavy unfortunately deemed it necessary to veto HB 189 along with four other bills for procedural reasons . This legislation would have lowered the legal age to serve or sell alcohol from 21 to 18 , making Alaska more competitive in the hospitality labor market . Our government affairs team is meeting with lawmakers and strategizing to ensure a similar bill will garner widespread support and swiftly move through the legislature during the coming session so that businesses might benefit from it next summer .
Dram Shop Laws and Liquor Liability Insurance Alaska is rated the worst state in the country for selling liquor liability insurance due to our existing dram shop laws . While legislation was introduced in 2023 to bring our dram shop laws more into alignment with the rest of the country , it did not obtain traction in the legislature . Bars especially have seen massive increases in their liquor liability insurance rates , upwards of 1500 %, resulting in businesses choosing not to carry this insurance , taking financial losses , or even closing their doors for good . This has become not only a small business emergency but a public health and safety one , as well . Fixing this will be a top priority in the coming session .
ABC Board : AMCO Director and Staff Resignations ; Trade Practices Regulations Current Director of the Alcohol & Marijuana Control Office ( AMCO ), Joan Wilson , has announced that her final day with AMCO will be September 15 . She served as director for two years , and at the time of her announcement , many other key positions in AMCO ’ s licensing and administrative sections remain or are soon to be vacant . The office is closing to the public on Wednesdays to work on significant backlogs of license and permit applications , and we expect major delays in processing of applications to continue throughout these ongoing staff shortages .
Meanwhile , the new trade practices regulations went into effect on August 9 . A link to AMCO ’ s presentation on the changes can be found on their homepage . The Alcoholic Beverage Control ( ABC ) Board committed to considering additional changes to minimize the negative impacts on businesses around the state . We expect the ABC Board to put additional regulations out for public comment at its upcoming meeting on September 10 th .
Our team will continue to keep you updated on government affairs that impact your business and our industry . Your engagement in the coming year will be more essential than ever . Thank you for your continued support .
At your service ,
ALASKA CHARR MAGAZINE | 3