I am 39 years old and have an awful memory especially when it comes to peoples names I see on a weekly basis. Is this the first sign of alzeimers?

Not Alzheimer's. Some have problems with name all their life yet retain a very adequate memory otherwise. If others have commented, if it a point of embarrassment relatively frequently, or your job is in any way compromised - you may want to pursue further evaluation. There are many treatable causes of memory problems: eliminating medications/substances, improving sleep, exercise, challenging your mind more.
Doubtful. You are extremely young for alzheimers, and probably have had problems with names and faces for years. This is common...Some people just don't remember names well. You may find coming up tricks to remember the names (rhymes, songs, etc) may help. Also, try taking a picture and writing the name on it...The visual cue may stand out in your memory.