In 2002, the Alaska Legislature increased the minimum wage substantially from $5.65 to $7.15 an hour. As a result of this increase, there were unintended consequences affecting other provisions of Alaska's Wage and Hour Act. After working with organized labor and the business community, HB 255 resulted in order to help alleviate one of these consequences.

Individuals employed in a bona fide "executive", "administrative" or "professional" capacity are exempt from Alaska's Wage and Hour Act. AS 23.10.085(b) give the Department of Labor the authority to define these terms. HB 255 requires that if the Department of Labor does define these terms, and the definition requires that the individual receive a minimum salary, the required minimum salary must be two times the state minimum wage for the first 40 hours of employment each week.

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