Section 2: Adds new subsection permitting employers to pay less than minimum wages to employees under 20 years of age. This exemption only applies to the first 90 consecutive calendar days in which the employee is employed. After that time, or upon the employee reaching 20, whichever is first, the employer must pay that employee minimum wage. The wage paid to the under-20 employees would be 85% of Alaska's current minimum wage.

Also says an employer may not take action to displace employees, including reduction in hours worked, wages, or employment benefits, to hire individuals at this subminimum wage.