From servers to baristas: Who gains most from Alaska's minimum wage increase?

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Jul 30, 2025, 13:13 ET

ANCHORAGE, Alaska, July 30, 2025 /PRNewswire/ -- Alaska's recent statewide minimum wage hike from $11.91 to $13.00 per hour is set to ripple across the state's hospitality sector, and the impact will be most pronounced among the lowest-paid service workers.

New analysis of 2024 employment and wage data by OysterLink shows that positions like bakers, bartenders, fast-food workers, hosts/hostesses, porters, and waiters are expected to benefit the most.

While many mid- and high-tier hospitality roles are already above the new minimum, thousands of workers in entry-level positions will now see a direct boost in their paychecks.

Who's impacted?

Using state-reported wage data, we compared the 10th percentile hourly wage for each hospitality occupation to the new $13 minimum. If the 10th percentile — representing the lowest-paid 10% of workers in a given role — was below $13, those wages will now need to rise.

The results show six roles where the 10th percentile wage fell below the new minimum:

Occupation	Employment	10th percentile wage	Increase needed	Est. workers affected*	Annual increase per worker
Baker	540	$11.73	+$1.27	54	~$2,642
Bartender	2,070	$11.73	+$1.27	207	~$2,642
Fast-Food Worker	5,060	$11.73	+$1.27	506	~$2,642
Host/Hostess	820	$11.73	+$1.27	82	~$2,642
Porter	40	$11.73	+$1.27	4	~$2,642
Waiter	3,980	$11.73	+$1.27	398	~$2,642
*Estimated at 10% of each occupation's workforce (representing the 10th percentile group).

What this means for workers

For a full-time worker clocking 40 hours per week, this $1.27 hourly bump translates to roughly $2,642 more per year. For many bartenders, fast-food employees, and waitstaff, this change provides much-needed relief as living costs continue to rise across Alaska.

A bartender working at the 10th percentile, for instance, will now earn at least $27,040 annually (up from roughly $24,400). Similarly, fast-food workers at the lowest pay levels will see their annual earnings jump closer to $27,000.

Broader impact on employers

For employers, this wage hike means adjusting payroll, especially in roles with a high concentration of minimum wage employees. Fast-food restaurants, for example, may see the largest cumulative impact, with an estimated $1.34 million in added annual payroll costs (based on roughly 506 affected employees).

"Businesses need to weigh higher payroll expenses against the potential benefits of improved retention and employee satisfaction," said an industry analyst reviewing the data. "In tight labor markets like Alaska, these increases could help employers stay competitive."

Which roles are unaffected?

Interestingly, most hospitality roles, including chefs, restaurant managers, hotel managers, receptionists, and event planners, are already paying well above the new minimum. These roles will not see a direct adjustment due to the increase.

Key takeaways

The minimum wage jump to $13 won't change the pay for all hospitality workers, but for nearly 1,250 Alaskans in the state's bars, restaurants, hotels, and bakeries, it means more financial breathing room.

As Alaska continues to balance the needs of workers and employers, this adjustment underscores the importance of monitoring wage floors, not just for legal compliance but also for the long-term health of the state's hospitality workforce.

About OysterLink

OysterLink is a job platform for restaurant and hospitality professionals with over 400,000 monthly visitors. OysterLink connects talent with opportunities across the U.S., including the top bartender jobs in Juneau or waiter jobs in Fairbanks.

The platform also offers trend reports, expert insights, and interviews with leaders in hospitality.

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SOURCE OysterLink