The new year brings increase to minimum wage, changes to license plates

Workers throughout Alaska will kick off the new year with a bump in the minimum wage. As of January 1, the Alaska minimum wage increased to $10.85 an hour.

The increase represents a 4.9% increase since the last time the minimum wage was adjusted back in 2021, according to the Alaska Department of Labor and Workforce Development, which established a rate of $10.34 per hour.

The state minimum wage increase comes as the federal minimum wage stands at $7.25 per hour — the same rate since 2009. Calculations from information provided by the Alaska Department of Labor and Workforce Development (DLWD) indicate this is the second-largest percent increase in Alaska’s minimum wage since 2016.

According to figures published by the U.S. Department of Labor, Washington has the highest minimum wage in 2023 with a wage rate of $15.74 per hour.

While President Joe Biden has campaigned to raise the federal minimum wage to $15 per hour, going so far as to sign an executive order last year to raise it to that level for federal workers and contractors, a broader change to $15 per hour nationally would have to be done through Congress. Efforts to raise the rate nationally failed to make it into Covid-19 relief legislation in 2021.

Alaska voters passed a ballot initiative in 2014 to adjust the minimum wage annually for inflation. Alaska Statute 23.10.065(a) requires the Alaska minimum wage to be adjusted using the Consumer Price Index for urban consumers in the Anchorage metropolitan area for the preceding calendar year. The Anchorage CPI-U increased 4.9% in 2021. As a result, the minimum wage will rise from $10.34 to $10.85 effective Jan. 1, 2023.

The Alaska minimum wage applies to all hours worked in a pay period, regardless of how the employee is paid — whether by time, piece, commission or otherwise. All actual hours worked in a pay period multiplied by the Alaska minimum wage is the very least an employee can be compensated by an employer unless the employer can clearly show that a specific exemption exists.

Meanwhile, the Alaska Department of Motor Vehicles (DMV) has several changes for the new year. They may be slight, but important for drivers.

First, for new license plates, there will be a barcode in the upper left corner. According to the Department of Motor Vehicles (DMV), the changes, especially the barcode in the upper left corner will help reduce DMV errors and create efficiencies in the data entry process. This will overall help improve the accuracy of DMV records.

A designated box has been added to assist in the proper placement of the month/year tab. There is also a minor font change that will make it easy to distinguish between similar letters and numbers and allow for existing art designs to remain.

According to the DMV, drivers already in possession of a bear plate need not replace it with the newest iteration, if the vehicle registration is up to date and valid.

Other changes that drivers will notice will impact non-commercial vehicles, recreational vehicles, and APV’s and centrally issued tabs done my by mail.

ALL non-commercial vehicles along with snowmachines, ATV’s and APV’s, will move to a new and more efficient central issuance solution.

“This means that when you visit any DMV or Business Partner office you will not receive a physical year tab at the counter. Once you pay your registration fee, you will get a temporary registration to carry in your vehicle while waiting for your registration and tab to come in the mail,” according to the DMV website.

This process is similar to the current online registration process except registrants will receive a valid temporary registration over the counter that will act as the registration until the physical tab arrives in approximately 7 to 10 business days.

All commercial vehicles that are registered in person at a DMV or partner office will receive a registration and tab same day.

There will be no changes to the way commercial vehicles are registered at this time for in person customers. The process of receiving a month and year tab is not changing.

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