Over the past year, many small business owners have contacted my office with concerns regarding the significant impacts resulting from the passage of Ballot Measure 1 in 2024. Specifically, most comments have centered around the leave accrual provisions and their impact on small business operations.

Along with my colleague Rep. Julie Coulombe, I recently introduced House Bill 161, which addresses and corrects key issues stemming from the ballot measure enacted into law by Alaskan voters in 2024. While the intent of Ballot Measure 1 was to provide employees and employers with an updated approach to worker benefits, certain provisions may place a significant financial strain on small businesses.

Small businesses are the lifeblood of Alaska’s economy. Here are a few statistics to help demonstrate the role small businesses play throughout our vast state. Of the 2,514 businesses that came into existence from March 2021 until March 2022, 2,408 were small businesses. 52% of Alaska employees work for a small business. 99% of all Alaska businesses are classified as small businesses and employ more than 171,000 workers.

Alaska small businesses from around the state have made requests to modify some of the provisions through legislation, and their concerns are reflected and addressed in the creation of HB 161. This legislation ensures that Alaska statutes align with our state’s unique economic landscape while maintaining the core principles of worker protection.

HB 161 refines the paid sick leave requirements by adjusting the accrual threshold, clarifying employer responsibilities, and ensuring that businesses can effectively comply without undue burden. Specifically, HB 161 corrects the threshold for paid sick leave accrual, shifting the requirement from small businesses to only those businesses with 50 or more employees.

The bill also exempts small businesses from the requirement to provide Alaska’s seasonal workers — a strong and mighty part of Alaska’s economy — with paid sick leave and enhances enforcement mechanisms to prevent misuse while maintaining worker protections.

The revisions in HB 161 are essential to preserving our small businesses and local workforce, allowing both to thrive in balance. To effectively support our worker population, we must first ensure that small businesses can prosper, creating and sustaining jobs for Alaskans.

As always, please reach out to my office with any questions or comments by emailing Rep.Justin.Ruffridge@akleg.gov or calling 907-465-2693.