At a Glance

• Proposed regulations would allow frontloading of paid sick leave with year-end forfeiture of unused time
• Proposed regulations clarify what employers can – and cannot – do when using a paid time off policy for compliance with the law
• Proposed regulations underscore the importance for employers to have a written paid sick leave policy that outlines the terms governing the use of paid sick leave including notification, verifications, and whether cash out is allowed.

On June 25, 2025, the Alaska Department of Labor & Workforce Development (Department) published proposed regulations interpreting Ballot Measure 1, Alaska’s new statewide Paid Sick Leave law, that took effect on July 1, 2025. While employers had been expecting regulations in early spring 2025, it started to seem unlikely that anything would be published prior to July 1st, particularly after the Alaska governor’s May 9, 2025 Administrative Order 358, which included “a freeze on the promulgation of new regulations by all agencies,” unless “a new regulations package is necessary to protect the safety of the public or to meet other essential State responsibilities.”

The regulations discussed below are proposed only, and they will undergo a public comment period through July 31st before being finalized, meaning that employers do not have the benefit of final regulations this month while implementing the new law, and the rules could change once finalized. In the interim, the proposed regulations do...

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